AN ACT to amend Tennessee Code Annotated, Title 43; Title 44; Title 47; Title 48 and Title 66, relative to property.
Impact
The implications of SB0122 are significant for both property owners and the real estate market in Tennessee. The law stipulates that sanctioned parties must divest from any newly acquired properties within two years and mandates that existing properties be registered with the Secretary of State within a specific timeframe. This aim is to create a clearer framework for managing property owned by individuals or businesses impacted by sanctions, enhancing regulatory oversight and compliance within the state. The changes are expected to modify how real estate transactions are conducted in Tennessee, especially concerning foreign investors.
Summary
SB0122, a recent piece of legislation in Tennessee, modifies existing laws concerning property ownership by nonresident aliens and foreign entities. It aims to impose restrictions on the ability of sanctioned nonresident aliens and foreign businesses or governments to purchase or acquire real property in the state. The bill establishes rules about the conditions under which ownership is permitted, particularly focusing on individuals and entities that are under U.S. Treasury Department sanctions. As of July 1, 2023, these parties can hold property they already own but are prohibited from acquiring additional property unless specifically exempted, such as through descent or legal enforcement of debts.
Sentiment
The sentiment around SB0122 is mixed, reflecting concerns over property rights and local economic impacts. Supporters argue that the bill is a necessary measure to protect the state from potential risks associated with foreign ownership linked to sanctioned entities. They claim it is an important step towards safeguarding the integrity of Tennessee's land ownership against potential national security threats. Conversely, detractors have criticized the bill for categorizing individuals in a broad manner, potentially penalizing innocent parties without sufficient due process. This raises alarms over civil rights and the potential chilling effect on foreign investments in the local economy.
Contention
Notable points of contention surrounding SB0122 center on the implications of sanctioning certain property ownership based solely on nationality or political status. While proponents view this as a protective measure, opponents argue it can lead to discrimination and infringe upon property rights. Furthermore, the bill's strict registration and divestment provisions have raised questions about how they may impact lawful property ownerships derived from descent. The legislative debate highlights the challenges in balancing state security needs against individual property rights, reflecting ongoing tensions in state and national conversations about foreign ownership of U.S. property.
AN ACT to amend Tennessee Code Annotated, Title 4; Title 12; Title 43; Title 45; Title 47; Title 48; Title 50; Title 61; Title 66 and Title 67, relative to commerce.
AN ACT to amend Tennessee Code Annotated, Title 4; Title 12; Title 43; Title 45; Title 47; Title 48; Title 50; Title 61; Title 66 and Title 67, relative to commerce.
Relating to acquisition of title to real property; to prohibit certain governments or governmental entities from acquiring certain real property in the state.