AZ SB1082

Foreign adversary nations and their agents are prohibited from purchasing, owning, or acquiring a substantial interest (30% or more) in real property in Arizona, with limited exceptions for property acquired by devise, descent, or through debt collection that must be divested within 120 days.

The Arizona Attorney General is authorized to enforce the prohibition through superior court actions and must report suspected violations to the FBI, other law enforcement agencies, and the Committee on Foreign Investments in the United States.

If a court finds a violation, it shall divest the foreign entity's interest and order the board of supervisors to sell the property, with proceeds distributed first to lienholders, then to reimburse county and state enforcement expenses, and any remainder to the property owner.

"Foreign adversary nation" is defined as a country identified by the U.S. Director of National Intelligence as posing a national security risk in the three most recent annual threat assessments, or determined by the U.S. Department of Commerce under specified regulations.

Making false reports to law enforcement regarding alleged violations is a Class 1 misdemeanor; title insurers, escrow agents, and real estate licensees cannot be held liable for violations; and violations cannot be the basis for title insurance claims.