In July 2025, Governor Katie Hobbs signed Senate Bill 1082 into law. Known as the Blocking Adversarial Nations Act (BAN Act), this legislation introduces new restrictions on land ownership in Arizona. It specifically targets foreign adversaries and their agents, marking a significant shift in the state’s real estate landscape.
What Is the BAN Act?
Direct Ban:
Effective immediately, the law prohibits governments and agents of foreign adversary nations from acquiring real property in Arizona. This includes purchases, grants, or any other acquisition of interest in land. The law also applies to individuals or entities with a 30% or greater ownership interest tied to a restricted party.
Defined Adversaries:
The ban covers countries designated as threats in the U.S. Director of National Intelligence’s Annual Threat Assessment, including China, Russia, Iran, and North Korea. It also applies to their state-controlled enterprises, agents, and political proxies.
Limited Exceptions:
Transfers of property through inheritance, foreclosure, or debt collection are allowed, but the recipient must divest within 120 days of taking ownership.
Enforcement and Penalties:
The Arizona Attorney General can file actions in superior court to force the sale or transfer of land held in violation. Anyone who files a false report may face a Class 1 misdemeanor. That includes penalties of up to six months in jail and a $2,500 fine.
How the BAN Act Became Law
Senate Bill 1082 passed both chambers of the Arizona Legislature on June 27, 2025, after being significantly revised through a strike-everything amendment that replaced the original bill text with the version ultimately signed into law.
Governor Hobbs had previously vetoed SB 1109, a narrower version of the bill supported by Republican lawmakers, citing concerns over loopholes and lack of coverage for key adversarial nations. On June 9, she introduced her own version, calling for stronger protections. The revised bill passed with bipartisan support and became law on July 1, 2025, as part of a broader legislative package.
What the Arizona BAN Act Means for Real Estate Buyers and Sellers
For Buyers and Investors
- Buyers with foreign ties should expect additional scrutiny, especially when purchasing land near military bases or utility infrastructure.
- Any entity tied to a restricted country may be disqualified from owning land in Arizona.
- Investors should work with legal counsel to ensure compliance when acquiring or structuring real estate transaction.
For Sellers
- If your buyer is an international entity or investor, your transaction could face delays or cancellation if the buyer is deemed ineligible under the new law.
- It’s important to work with an experienced real estate professional who can vet offers and flag potential legal issues early in the process.
For Real Estate Professionals
- Brokers, title agents, and attorneys should update their compliance protocols to include checks for affiliations with restricted entities.
- While the law includes liability protections for professionals acting in good faith, it’s critical to stay informed and diligent in every transaction.
For Local Governments
- Counties and municipalities will need to adjust permitting and land-use review processes to ensure compliance with the BAN Act.
- County Boards of Supervisors have the authority to oversee the divestiture of properties acquired in violation of the law.
Foreign Entities That Already Own Land
Some foreign entities, including investors linked to private Chinese businesse, already own land in Arizona. However, the actual footprint is far smaller than commonly believed. A much‑circulated map based on outdated AFIDA data listed nearly 9,000 acres as Chinese‑owned. More recent USDA figures show only 322 acres in Chandler had actual Chinese ownership, and that land was purchased in the 1980s, not during the pandemic.
The BAN Act does not apply retroactively. It does not force divestment of existing holdings unless investigations find undisclosed ties or proxy acquisitions. In that case, the Arizona Attorney General may act under the new law to challenge ownership. Still, no official enforcement actions targeting current property owners have been reported.
Legal and Political Context
Governor Hobbs opposed the original version of the bill (SB 1109) because it allowed for a three-year grace period for some acquisitions and failed to include several adversary nations. The BAN Act represents a broader and more immediate restriction.
Arizona is one of several states enacting legislation to restrict foreign land ownership, particularly near sensitive sites. However, similar law, like Florida’s SB 264, are already facing legal challenges related to constitutional protections and equal treatment. Whether Arizona’s version will face similar hurdles remains to be seen.
Final Thoughts
The BAN Act brings renewed confidence to Arizona’s property market by strengthening protections for land ownership. By focusing on national and state security, the law helps safeguard infrastructure and preserve the integrity of Arizona’s communities.
Whether you’re buying, selling, or investing, it’s more important than ever to work with professionals who understand the law and can guide you through the process. Staying informed helps you make secure, strategic decisions in today’s real estate landscape.
If you have questions about how the BAN Act might affect your plans, Erica is happy to help. Contact her anytime for personalized guidance.
