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Texas SB 17 prohibits people from China and other countries from purchasing real estate. Two Chinese citizens living abroad filed a lawsuit to challenge this. The Fifth Circuit Court of Appeals will first review whether they have standing to sue federally, but has not yet ruled.
Chinese citizens living outside the United States who are interested in purchasingtexas Real Estate, Do You Have the Right to Legally Challenge Texas’ Property Purchase Restrictions? To review the case, the Fifth Circuit Court of Appeals heard statements from two lawyers representing Chinese nationals on the 2nd; The three-judge panel did not immediately issue a ruling.
The two plaintiffs, Chinese citizens, are Min Huang (transliteration), a resident of Shanghai, and Min Huang (transliteration), a resident of Shanghai, Texas media Chron reported, citing information from the Courthouse News Service.new zealand Qiong Dai (transliteration)houston All districts have rental properties and want to purchase more property, but Texas Senate Bill 17 (SB 17), which went into effect on September 1 last year, does not allow them to purchase further property.
Texas law SB 17 prohibits certain persons and entities with ties to certain countries from purchasing or otherwise acquiring real property rights in Texas; Countries banned by this law include China, Russia, Iran and North Korea.
Research shows that international buyers purchased approximately 7,780 properties in Texas last year, with Chinese buyers accounting for 9%; About 62% of international buyers were living in the United States with a visa or had recently immigrated when they purchased the property. The conclusion of this case is clearly of great importance to the Texas housing market.
The court had to consider not only whether Texas had the authority to restrict such home purchases, but more importantly, whether Huang Min and Dai Qiong had “legal standing” to challenge the law in federal court. His attorney, Justin Sadowski, told the judge that the transaction involves assets located in Texas and may be subject to enforcement jurisdiction by Texas courts, so his clients have constitutional protections.
Texas pushed back, arguing that the proposed purchase was too opportunistic and that the plaintiffs did not have sufficient ties to the United States to warrant such a lawsuit.
This is not the first case involving the “SB 17” law. Last year, Peng Wang, a Chinese citizen who has lived in Texas for 16 years, also filed another lawsuit claiming that “SB 17” was unconstitutional and submitted it to the same appeals court. The federal Court of Appeals for the Fifth Circuit ruled in December last year that Wang Peng did not have standing as a plaintiff (lacking standing as the subject of the litigation) because he did not live in China and failed to prove that Texas would pose a substantial threat to its law enforcement.
Summary FAQ
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The plaintiffs are Huang Min, who lives in Shanghai, and Dai Qiong, who lives in New Zealand. They both own rental properties in the Houston area and hope to buy more. However, Texas SB 17 prevents them from purchasing further property, so they filed a challenge.
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SB 17 prohibits certain individuals and entities associated with certain countries from purchasing or otherwise acquiring real estate in Texas. China, Russia, Iran and North Korea are all among the sanctioned countries and the scope of influence is much broader.
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The court must first determine whether Huang Min and Dai Qiong have the legal subject qualifications to sue in federal court; Texas claims they have inadequate relations with the United States, but plaintiffs’ attorneys believe the property involved in the case is located in Texas and adequately protected by the Constitution.
