Aliens have only such rights to take and hold real property as is permitted by state and federal law.

Subject to the provisions of the United States Constitution and U.S. treaties, the rights of aliens with respect to real property are primarily matters of state regulation. The restrictions and prohibitions involve various degrees of complexity and ambiguity and rarely follow a common wording among the states.

At common law, an alien could take no title by descent (a rule based upon the feudal notions of the obligation of the tenant to the king), and while the alien could acquire title by purchase or devise, such title was subject to forfeiture to the sovereign by a proceeding known as inquest of office.

Many states have eliminated or modified these disabilities, but at the present time, a great number of states have limitations or prohibitions on either the ownership of land by aliens (residents or nonresidents) or the inheritance of land by aliens (residents or nonresidents). In some instances, either the eligibility or declaration of intention to become a citizen needs also to be considered.

State laws currently affecting alien ownership of real estate fall into three main categories:

• Ownership by alien individuals (residents and nonresidents).
• Alien corporate ownership.
• Ownership by alien individuals through the laws relating to inheritance.

Statutes restricting ownership of the land are based on:

• The amount of the land.
• The value of the land.
• The use of the land.
• The duration of the holding of the land.
• Specific qualities of the land.

The land prohibited or restricted may be:

• Agricultural
• Grazing
• Homestead
• Land for Geothermic Use
• Mineral
• Oil and Gas
• Public Land/State Land
• Ranch
• Timber
• U.S. Territories
• Any other kind so defined by federal or local law

No owner's policy or loan policy should be issued in favor of alien ownership that contravenes state or federal law.

Although ownership may be prohibited or restricted by state law, title usually vests in the alien subject to divestiture by action brought by the state. If, prior to such action, the alien conveys, the purchaser takes subject to any right of the state to divest. It is also necessary to consider local restrictions upon the ownership of land by aliens and what effect such ownership may have upon its marketability. This is of paramount importance in those states where such ownership is deemed unlawful.

In those states in which a mortgage is considered to be a conveyance, the interest of the mortgagee in the land of the alien may not be affected by a subsequent order to divest. Unless there is clear state statutory authority to this effect in the state where the land is located, approval from the National Legal Department must be obtained prior to the issuance of any title commitment secured by land owned by an alien entity, or an alien or aliens.

See also, Agricultural Lands (1.44), Corporations (3.68).

Alabama

Restrictions on Ownership in General

Any alien, resident or nonresident, may take, inherit, or sell real property Ala. Const. art. I. sec. 34, Ala. Code 35-1-1.

Restrictions on Inheritance

No restrictions. Ala. Code secs. 35-1-1, 43-8-56.

Restrictions on Corporations/Business Entities

No restrictions for foreign corporations under Christian v. American Co. Freehold Land Mtg. Co., 7 So. 427 (Ala. 1890).

Alaska

Restrictions on Ownership in General

Aliens at least 18 years of age who have declared intention to become U.S. citizens and aliens at least 18 years of age if their countries grant like privileges to U.S. citizens may hold property. Alaska Stat. sec. 38.05.190 (3), (4), (6).

Restrictions on Public/State Land

Exploration and mining rights in state-owned lands may be acquired and held only by U.S. citizens, persons at least 18 years of age whose home country grants reciprocal treatment, and certain corporations herein mentioned. An unqualified person acquiring rights by operation of law shall be allowed 2 years to become qualified or dispose of interest. Alaska Stat. sec. 38.05.190.

Restrictions on Inheritance

No disqualifications. Alaska Stat. sec. 13.11.060. But see Alaska Stat. sec 13.11.060 (b).

Restrictions on Corporations/Business Entities

Articles of incorporation of domestic corporations and applications of certification of authority for foreign corporations and biannual reports of all corporations must disclose alien affiliate, percentage of shares, and description or relationship. Alaska State. secs 10.06.730, 10.06.808, 10.06.813. To be qualified to acquire and hold exploration and mining rights in state-owned lands, corporation must be organized under the laws of a state or territory of the U.S. and no more than 50% of its stock may be owned or controlled by aliens who could not own directly. Alaska Stat. sec 38.05.190 (5).

Arizona

Restrictions on Public/State Land

No individual, corporation, or association may purchase more than 160 acres of state agricultural land or more than 640 acres of state grazing land. Ariz. Const. art. 10, sec. 11, Ariz. Rev. Stat. sec. 37-240(A).

Restrictions on Corporations/Business Entities

No individual, corporation, or association may purchase more than 160 acres of state agricultural land or more than 640 acres of state grazing land. Ariz. Const. art. 10, sec. 11, Ariz. State. sec. 37-240(A). No sales, leases, or subleases, of state lands shall be made to corporations not qualified to do business. Ariz. Stat. sec. 37-240(B).

Arkansas

Restrictions on Ownership in General

Aliens have capacity to take and transmit lands. Ark. State. 18-11-101. Foreign investment in agricultural land must be registered in office of circuit clerk in county where land is located within 60 days of acquisition. Ark. Stat. secs. 77-2202 to 2211.

Restrictions on Inheritance

Resident aliens have same rights as citizens. Ark. Const. art. 11, sec. 20 Aliens may inherit as freely as citizens. Ark. Stat. secs. 18-11-101, 28-9-211, 28-11-202.

Restrictions on Corporations/Business Entities

Some corporations are explicitly affected by the alien restrictions and reporting requirements. Ark. Stat. secs. 77-2202 to 2211.

California

Restrictions on Ownership in General

Any person, whether alien or citizen, may take, hold, and dispose of property within the state. Cal. Const. Art. 1, sec. 20, Cal. Civ. Code sec. 671.

Restrictions on Public/State Land

Leases and prospecting permits on public land can be issued to and held only by persons and associations of persons who are citizens of the U.S. or who have declared the intention of becoming citizens or whose country grants such rights by reciprocity or by treaty; alien corporations are not eligible unless 90% of more of the shares are owned by eligible persons or corporations. Cal. Pub. Res. Code. secs. 6801, 7601, 8105.

Restrictions on Corporations/Business Entities

No restrictions on corporate land ownership except with respect to leases and prospecting permits on public land. Cal. Pub. Res. Code, sec. 6801.

Colorado

Restrictions on Inheritance

No person is disqualified because of alienage. Colo. Rev. Stat. sec. 15-11-112.

Connecticut

Restrictions on Ownership in General

Any alien, whether or not resident of U.S. may hold, inherit, and transfer real property as a native-born citizen. Conn. Gen. Stat. sec. 47-58a.

Restrictions on Inheritance

Any alien, whether or not resident of U.S. may inherit real property as a native-born citizen. Conn. Gen. Stat. sec. 47-58a.

Delaware

Restrictions on Ownership in General

All real and personal property may be taken, acquired, held, and disposed of by an alien in the same manner as by a citizen or this state. Del. Code secs. 306 to 308.

Restrictions on Inheritance

A good title to real and person property may be derived through, from, or in succession to an alien in the me manner as through, from or in succession to a citizen of this state. Del. Code sec. 307.

District of Columbia

Restrictions on Ownership in General

Aliens are authorized to acquire, hold, own, and dispose of real estate in the District of Columbia to the same extent authorized in the U.S. territories. D.C. Code sec. 45-1301. All lands acquired by aliens through inheritance or in collection of debts shall be sold within 10 years or shall escheat to the U.S. and be forfeited. Any alien who shall become a bona fide resident of the U.S. or have declared his intention to become a U.S. citizen shall have the right to acquire and hold lands. If any resident alien shall cease to be a bona fide resident, the alien shall have 10 years to alienate such lands. These sections shall not be construed to prevent any person not a citizen of U.S. from acquiring or holding lots or parcels of lands in any incorporated or platted city, town or village or in any mine or mining claim. 48 U.S.C. secs. 1501-1507. Rules for ownership by representative of foreign government. D.C. Code sec. 45-1032.

Restrictions on Public/State Land

This chapter shall not be construed to authorize aliens to acquire title from the U.S. to any public lands of the U.S. or in any manner affect or change the laws regulating the disposal of the public lands of the U.S. 48 U.S.C. sec. 1507.

Restrictions on Inheritance

In taking title by descent, it is no bar to a party claiming as heir that an ancestor through whom he derives his descent from the intestate, is or has been an alien. D.C. Code sec. 19-321.

Restrictions on Corporations, Business Entities

Corporations may not be organized to buy, sell, or deal in real estate, except corporations to transact the business ordinarily carried on by real estate agents or brokers. D.C. Code sec. 29-201. An alien corporation is a "person" for purposes

Florida

Restrictions on Ownership in General

The ownership, inheritance, disposition and possession of real property by aliens ineligible for citizenship may be regulated or prohibited by law. Fla. Const. art. 1, sec. 2.

Restrictions on Inheritance

No person is disqualified to take as an heir because he, or a person through whom he claims, is or has been an alien. Fla. Stat., sec. 732-1101.

Georgia

Restrictions on Ownership in General

Aliens have equal rights with citizens, so long as their government is at peace with the U.S. Ga. Code sec. 1-2-11

Restrictions on Corporations, Business Entities

All alien corporations that desire to acquire any interest in real property shall establish and maintain a registered office and agent and shall file a report annually. Ga. Code sec. 16-14-15.

Hawaii

Restrictions on Ownership in General

Only bona fide resident can buy residential house-lot within a development. __________________________________________________ tract. Hawaii Rev. Stat. sec. 516-33. Only bona fide resident for 3 years and bona fide farmer can apply for business or public lands. Hawaii Rev. Stat. sec. 171-68. Must be U.S. citizen or declarant aliens who have resided in the state for 5 years and will reside in Oahu Land Development. Hawaii Rev. Stat. sec. 206-9(c).

Restrictions on Public/State Land

Only bona fide resident for 3 years and bona fide farmer can apply for business or public lands. Hawaii Rev. Stat. sec 171-68.

Restrictions on Inheritance

No person is disqualified to take as an heir because he or the person through whom he claims is or has been an alien. Hawaii Rev. Stat. sec. 560: 2-112.

Idaho

Restrictions on Ownership in General

Any person, whether citizen or alien, may take, hold, and dispose of property, real or personal. Idaho Code sec. 55-103.

Restrictions on Public/State Land

Sale of state land restricted to U.S. citizens and those who have declared their intention to become such. Idaho Code sec. 58-313.

Restrictions on Inheritance

No person is disqualified to take as an heir because he or the person through whom he claims is or has been an alien. Idaho Code sec. 15-2-112.

Illinois

Restrictions on Ownership in General

Aliens have full rights to acquire land by purchase or inheritance, but must dispose of it within 6 years, unless within such person, the alien owner has become a U.S. citizen. Ill Rev. Stat. ch. 6, secs. 1, 2. Any foreign person who acquires or transfers any interest other than leasehold interest of 10 years or less or a security interest in agricultural land shall submit a report to director of agriculture within 90 days. Ill. Rev. Stat. ch. 6, secs. 602-606.

Restrictions on Inheritance

Aliens can inherit land, but must dispose of it within 6 years, unless within such period the alien owner has become a U.S. citizen. Ill. Rev. Stat. ch. 6, secs. 1, 2.

Restrictions on Corporations, Business Entities

Foreign corporations must sell title to land acquired under any judgment or power in mortgage or deed within 5 years of acquiring title. Ill. Rev. Stat. ch. 17, sec. 2901. See also alien reporting requirements. Ill. Rev. Stat. ch. 5, secs. 603, 604.

Indiana

Restrictions on Ownership in General

All aliens residing in Indiana who have declared their intention to become U.S. citizens may acquire and hold real estate. Ind. Code. sec. 32-1-7-1.

Restrictions on Inheritance

Natural persons, either resident or nonresident aliens, may purchase land and acquire land by devise or descent. Ind. Code 32-1-8-1. If the alien does not become a U.S. citizen, property in excess of 320 ____ (?) must be disposed of within 5 years under penalty of escheat. Ind. Code sec. 32-1-8-2.

Restrictions on Corporations, Business Entities

In dealing with alien corporations and alien controlled corporations, consideration should be given to the provision that limits corporate powers to those possessed by "natural persons" and to such purposes as are "not repugnant to law". Ind. Code. sec. 23-1-2-2 (a). (b).

Iowa

Restrictions on Ownership in General

A nonresident alien, foreign business, or foreign government may acquire by grant, purchase, devise or descent, except agricultural land or any interest therein and may own, hold, devise or alienate the real property the same as a citizen and resident of the U.S. Iowa Code sec. 567.2. A nonresident alien, foreign business, or foreign government shall not purchase or otherwise acquire agricultural land in Iowa, but if it hold agricultural land on Jan. 1. 1980, it may continue to own or hold the land, but shall not purchase or acquire additional agricultural land. The restriction does not apply to agricultural land, not to exceed 320 acres, acquired by a nonresident alien, foreign business, or foreign government for an immediate or pending use other than farming: if the entity lawfully owns over 20 acres on Jan. 1, 1980, it may continue to own same, but shall not acquire additional agricultural land except by devise or descent from a nonresident alien. Agricultural land not subject to restrictions of 567.3 because acquired for an immediate or pending use other than farming: if the entity lawfully owns over 320 acres on Jan. 1, 1980, it may continue to own same, but shall not acquire additional agricultural land except by devise or descent from a nonresident alien. Agricultural land not subject to restriction of 567.3 because acquired for an immediate or pending use other than farming shall be converted to the purpose otter than farming within 5 years after acquisition. The entity shall divest itself of agricultural land acquired by descent or devise after Jan. 1, 1980, within 2 years after acquisition. Iowa Code secs. 567.3 to 567.5.

Restrictions on Inheritance

A nonresident alien may acquire real property, except agricultural land, by devise or descent in the same way as resident aliens and U.S. citizens. A nonresident alien may acquire agricultural land by devise or descent, but if acquired after Jan. 1, 1980, it must be disposed of within 2 years after acquisition. Iowa Code secs. 567.2 to 567.5.

Restrictions on Corporations, Business Entities

"Foreign business" is defined as a corporation incorporated under the laws of a foreign country, or a business entity whether or not incorporated, in which a majority interest is owned by nonresident aliens. See also reporting requirements Iowa Code secs. 558.43 to 558.44; 567.1 to 567.11; 528A.1; 428A.2, 172C.1 to 172C.12.

Kansas

Restrictions on Ownership in General

State constitution provides that the rights of aliens in reference to the purchase, enjoyment, or descent or property may be regulated by law. Kan. Const., Bill of Rights sec. 17.

Restrictions on Inheritance

The devise of real estate to any foreign country or corporation except devises to institutions for religious, educational, or charitable purposes is prohibited and void. Kan. Stat. sec. 59-602. Aliens eligible to citizenship under the laws of the U.S. may transmit and inherit real estate in the same manner as U.S. citizens. All other aliens may transmit and inherit only as provided by treaty. Kan. Stat. sec. 59-511.

Restrictions on Corporations, Business Entities

With exceptions, no corporation, trust, limited partnership, or corporate partnership shall own or lease any agricultural land. Kan. Stat. sec. 17-5904. In addition to reports required of all foreign and domestic corporations and partnerships, those that own agricultural land must report all holdings except those of less than 10 acres and state-assessed-railroad-operating property. Kan. Stat. secs. 17-7503 to 7505, 17-5902 to 5904. Foreign insurance companies may not engage in agriculture, horticulture, or dairy business. Kan. Stat. sec. 40-403 (b).

Kentucky

Restrictions on Ownership in General

An alien who has declared his intention to become a U.S. citizen may acquire or inherit land as if he were a citizen, but if he has not become a citizen within 8 years of acquisition, the property escheats to the state. Ky. Rev. Stat. secs. 381.290, 381.300. An alien who is a resident of the state may take and hold lands for a residence, business, trade or manufacture for as long as he remains a resident of the state. Ky. Rev. Stat. sec. 381.320. Special rules apply for the alien wife or child of a U.S. citizen. Ky. Rev. Stat. 381.310.

Restrictions on Inheritance

An alien who has declared his intention to become a U.S. citizen and nonresident aliens are entitled to inherit property, but must dispose of it within 8 years, unless the alien becomes a citizen. Ky. Rev. Stat. secs. 381.290 to 381.340.

Restrictions on Corporations, Business Entities

Corporations may not hold any property, except that property "proper and necessary for carrying on its legitimate business" for longer than 5 years under penalty of escheat. Ky. Rev. Stat. sec. 271A.705(1). A corporation may be formed for any lawful business. Ky. Rev. Stat. secs. 381.300, 381.320.

Louisiana

Restrictions on Public/State Land

Louisiana limits lessees to one contiguous parcel of no more than 640 acres except for storage of natural gas. La. Rev. Stat. secs. 41:1216, 41:1266.

Restrictions on Inheritance

An alien may take by inheritance since 1818 under case law.

Restrictions on Corporations, Business Entities

In addition to filing requirements for corporations doing business, foreign partnerships owning immovable property must file a copy of their written partnership to own real estate. La. Rev. Stat. sec. 9:3423.

Maine

Restrictions on Ownership in General

An alien may hold, convey, and devise real estate. Me. Stat. tit. 33, sec. 451.

Restrictions on Inheritance

An alien may hold, convey, and devise real estate. Me. Rev. Stat. tit. 33. Sec. 451.

Maryland

Restrictions on Ownership in General

An alien who is not an enemy may own, sell, devise, dispose of, or otherwise deal with property like a U.S. citizen. Md. Real Prop. code sec. 14-101.

Restrictions on Inheritance

Al alien who is not an enemy may inherit. Md. Real Prop. Code sec. 14-101.

Massachusetts

Restrictions on Ownership in General

Aliens may take, hold, transmit and convey real property. Mass. Gen. Laws ch. 148, sec. 1.

Restrictions on Inheritance

Payments of a legacy or distributive share to a person domiciled in a country where there is not a reasonable assurance that the distributions will actually receive payment in substantially full value, may be subject to certain restrictions. Mss. Gen. Laws ch. 2-6, sec. 27B.

Restrictions on Corporations, Business Entities

Corporations formed for the purpose of dealing with real estate other than forest land cannot have a duration exceeding 50 years. Mas. Gen. Laws ch. 156, sec. 7.

Michigan

Restrictions on Ownership in General

Aliens who are residents of this state shall enjoy the same rights and privileges in property as citizens of this state. Mich. Const. art. X, sec. 6.

Restrictions on Inheritance

Any alien may acquire and hold lands by purchase, devise, or descent and he may convey, mortgage, and devise the same if such alien were a native of this state or of the U.S. Mich. Stat. secs. 554.135, 554.136, 558.21.

Minnesota

Restrictions on Ownership in General

No natural person shall acquire directly or indirectly any interest in agriculture land unless he is a U.S. citizen or a permanent resident alien. Agricultural land acquired by someone other than a citizen or permanent resident alien by devise, inheritance, or through collection of debts or enforcement of a lien or claim must be disposed of within 3 years after acquisition. Minn. Stat. secs. 500.221, 500.24, 609.03(2).

Restrictions on Inheritance

No person is disqualified to take as an heir because the person or another through whom the person claims is or has been an alien. Minn. State sec. 524.2-112.

Restrictions on Corporations, Business Entities

No corporation, partnership, limited partnership, trustee or other business entity shall acquire, directly or indirectly, any legal or beneficial interest in agricultural land unless 80% of each class of stock issued or if the ultimate beneficial interest is held directly or indirectly by U.S. citizens or permanent resident aliens. Minn. Stat. sec. 500.221(2). All corporations are prohibited form acquiring real estate capable of being used for farming, subject to certain exceptions. Among the exceptions are certain "family farm corporations" and "authorized farm corporations" involving a requirement that some portion of the stockholders reside on the property. Minn. Stat. sec. 290.41.

Mississippi

Restrictions on Ownership in General

Resident aliens are treated as citizens. Nonresident aliens may not acquire or hold land, except by way of security for a debt or 5 acres for residential purposes or 320 acres for industrial development. Miss. Code sec. 89 1-23; see also Miss. Const. art IV, sec. 84.

Restrictions on Public/State Land

Nonresident aliens, corporations (except certain banks) and any association of persons composed in whole or part of nonresident aliens cannot directly purchase or own public lands. Miss. Code secs. 29-1-75, 29-1-7.

Restrictions on Inheritance

Resident aliens may transmit land by descent; nonresident aliens except Lebanese and Syrian nonresidents are restricted under penalty of escheat. Miss. Code sec. 89.1-23.

Restrictions on Corporations, Business Entities

Restrictions with respect to corporations holding public lands. Miss. Code sec. 29-1-7, 29-1-75. The attorney general or district attorney may file an information in the nature of a quo warranto if a nonresident alien or corporation hold land contrary to law. Miss. Code secs. 11-39-1 to -3.

Missouri

Restrictions on Ownership in General

Persons not citizens and not residents of U.S. shall be capable of acquiring by grant, purchase, devise, or descent, real estate except agricultural land (more than 5 acres). Mo. Rev. Stat. sec. 442.560. Additional agricultural land acquired by nonresident alien or land converted from nonagricultural use must be devised within 2 years. Mo. Rev. Stat. secs. 350.010 to 350.030, 442.560 to 442.592.

Restrictions on Inheritance

It is no bar to a demandant that any ancestor through whom he derives his descent is or has been an alien. Mo. Rev. Stat. 474.100. Persons not citizens and not residents of U.S. shall be capable of acquiring by grant, purchase, devise, or descent real estate except agricultural land (more than 5 acres). Mo. Rev. Stat. sec. 442.560. See also sec. 473.657.

Restrictions on Corporations, Business Entities

Alien corporations are specifically authorized to acquire, own, hold, and alienate real estate except agricultural land. Corporations are not to engage in farming (with exceptions). Reporting requirements. Mo. Rev. Stat. secs. 350.101 to 030; 442.560 to .592.

Montana

Restrictions on Public/State Land

State lands may be sold only to citizens and those who have declared their intent to become citizens or corporations organized under the laws for Montana. No person or corporation may purchase more than 1 section, and this area shall not include more than 160 acres of land susceptible to irrigation. Coal leases for state-owned lands are limited. Mont. Code secs. 77-2-306 to 307, 77-3-305.

Restrictions on Inheritance

No person is disqualified to take as an heir because he or person through whom he claims is an alien unless country in which he resides does not allow reciprocity. Mont. Code secs. 72-2-214 to 215.

Restrictions on Corporations, Business Entities

No person or corporation is eligible to purchase more than 1 section, and this area shall not include land susceptible to irrigation. Limits on coal leases of state-owned land. Mont. Code secs. 77-2-305 to 307.

Nebraska

Restrictions on Ownership in General

The rights of aliens in respect to acquisition, enjoyment, and descent of property may be regulated by law. Neb. Const. art. I, sec. 25. Aliens are prohibited form owning land except for land lying within the corporate limits of a city or village or within 3 miles thereof. Aliens may also purchase or lease land for erection of manufacturing and industrial establishments and petroleum filling station. Neb. Rev. Stat. secs. 76-401 to 76-415. No trust shall directly or indirectly acquire or lease agricultural land. Neb. Rev. Stat. secs. 76-1515 to 76-1516.

Restrictions on Public/State Land

Any person or association may obtain right to prospect for and develop minerals on public lands or waters except oil and gas if approved by Board of Educational Lands and Funds. Neb. Rev. Stat. secs. 72-302 to -304.

Restrictions on Inheritance

Nonresident aliens may acquire real property be devise or descent but must dispose of it within 5 years under penalty of escheat. Nonresidential aliens may take by devise or descent only if under laws of aliens’ home country and a reciprocal right exists for U.S. citizens. Neb. Rev. Stat. secs. 4-107, 76-401, 76-402, 76-408, 76-409.

Restrictions on Corporations, Business Entities

Corporations organized outside Nebraska are generally prohibited from land ownership, except for lands in cities and villages and within 3 miles of the limits thereof. Restrictions do not apply to erecting and manufacturing and industrial establishments and petroleum filling stations. Corporations owning any interest in agricultural land must file an annual report with the secretary of state disclosing identity of officers, board members, and shareholders owning 10% of stock and identifying those who are alien. Neb. Const. art. XII, sec. 8, Neb. Rev. Stat. secs. 76-401 to -415.

Nevada

Restrictions on Ownership in General

Any nonresidential alien, person, or corporation may take, hold, and enjoy real property as fully as any resident citizen, person or domestic corporation. Nev. Rev. Stat. sec. 111.055.

Restrictions on Public/State Land

U.S. Citizenship or lawful permanent residence is required to make an application to purchase Carey Act desert reclamation lands or to locate a lode mining claim. Nev. Rev. Stat. secs. 324.130, 517.010.

New Hampshire

Restrictions on Ownership in General

Any alien resident in this state may take, purchase, hold, convey, or devise real estate, and it may descend in the same manner as if he were a citizen. N.H. Rev. Stat. sec. 477:20.

Restrictions on Inheritance

An alien resident in this state may take or devise real estate in the same manner as citizens. N.H. Rev. State. sec. 477:20. However, the N.H. Supreme Court has expressed the view that the common-law restriction apply to nonresident aliens, and this statue would not be extended to permit nonresident aliens to inherit property. In re Estate of Constan, 384 A.2d 495 (N.H. 1978); Hanafin v. McCarthy, 95 N.H. 36, 57 A.2d 148 (1948); Lazarou v. Moraros, 101 N.H. 383, 143 A.2d 669 (1959).

Restrictions on Corporations, Business Entities

The power of a corporation of another state to acquire property in N.H. has been recognized in Lumbard v. Aldrich, 8 N.H. 31 (1835).

New Jersey

Restrictions on Ownership in General -Alien friends have the same rights as citizens with respect to real estate. Nothing in this section shall be construed to prevent the sequestration, seizure, or disposal by the state or national government of any real estate during the continuance of war; but any bona fide conveyance, mortgage, or devise made by such alien shall be valid if made to a U.S. citizen or alien friend. N.J. Rev. Stat. sec. 46:3-18.

Restrictions on Inheritance

A person is not disqualified to take as an heir because he or a person through whom he claims is or has been an alien. N.J. Stat. sec. 3B:5-12. See also alien enemies. N.J. Stat. sec. 46:3-18. See also if no benefit use, or control. N.J. Stat. sec. 3B:23-22.

New Mexico

Restrictions on Ownership in General

Aliens have full power and authority to acquire or hold real estate by deed, will, inheritance, and to alienate the same to their heirs or other persons whether such heirs or other persons are, or are not U.S. citizens. N.M. Stat. sec. 45-2-112. This statute suspended a provision of this state constitution which prohibited ownership of land by aliens not eligible for citizenship. N. M. Const. art. III, sec. 2.

Restrictions on Inheritance

See N.M. Stat. sec. 45-2-112 granting aliens full powers to devise and inherit real property.

New York

Restrictions on Ownership in General

Aliens have the right to acquire, hold, and dispose of real property in the same manner as U.S. citizens. N.Y. Real Prop. Law sec. 10(2).

Restrictions on Inheritance

Surr. Ct. Proc. Act. sec. 2218(2) conditions the probate court’s order of distribution to a nonresident alien beneficiary on a demonstration that he will receive the true benefit of the inheritance.

Restrictions on Corporations, Business Entities

A foreign corporation may acquire and hold real property in the same manner as a domestic corporation. N.Y. Bus. Corp. Law secs. 1301-1302. Any cooperative corporation organized under the laws of another state shall file with the department of agriculture a certified copy of its articles of incorporation, bylaws and annual report. N.Y. CLE Co-op sec. 76.

North Carolina

Restrictions on Ownership in General

It is unlawful for aliens to take both by purchase and descent, or other operation of law, any lands, tenements or hereditaments, and to hold and convey the same as fully as citizens of this state can or may do, any law or usage to the contrary notwithstanding. N.C. Gen. Stat. sec. 64-1.

Restrictions on Inheritance

Unless otherwise provided by law it shall be no bar to intestate succession that any person through whom he traces his inheritance is or has been an alien. N.C. Gen. Stat. sec. 29-11. No alien residing outside the U.S. or its territories shall be entitled to take personal property located in this state by succession or testamentary disposition if the laws of the nation of which such alien is a resident prohibits residents of the U.S. from inheriting personal property located within that nation. Except as hereinabove provided, no alien shall, by reason of his citizenship or place of residence be disqualified from inheriting property in this state. N.C. Gen. Stat. sec. 64-3.

Restrictions on Corporations, Business Entities

The secretary of state is authorized and directed to collect all information obtainable from reports by aliens made to agencies of the federal government on ownership of real property interest in North Carolina, to be updated every 3 months, and to maintain a file on such information which shall be available to the members of the General Assembly and the public. N.C. Gen. Stat. sec. 64-1.1.

North Dakota

Restrictions on Ownership in General

Any person, whether citizen or alien, may take, hold, and dispose of real property within the state except as provided in chap. 47 secs. 10-1-01 which defines agricultural land and restricts tits acquisition to citizens of the U.S., Canada, permanent resident aliens, but does not apply to agricultural land acquired by devise, inheritance, security for indebtedness by process of law in the collection of debts, although this property must be disposed of within 3 years. N.D. Cent. Code secs. 47-10.1.01-05. Willful failure to register. N.D. Cent. Code secs. 47-10.1-06, 12.1-32.01.

Restrictions on Inheritance

Agricultural land acquired by devise or inheritance must be disposed of within 3 years of acquisition. N.D. Cent. Code sec. 47-10.1-02.

Restrictions on Corporations, Business Entities

Foreign corporations may acquire reasonable amount of agricultural land for use as industrial site. A foreign corporation shall dispose of agricultural land acquired for industrial purposes within 1 year after acquisition if construction contracts are not entered into within 150 days after acquisition of land unless U.S. has treaty with alien’s country, or holder is railroad common carrier. N.D. Cent. Code sec. 47-10.1-02. All corporations except otherwise provided are prohibited from owning and leasing land used for farming or ranching. N.D. Cent. Code secs. 10-06-01 to 14.

Ohio

Restrictions on Ownership in General

A nonresident alien or corporation who acquires any interest in his own name or name of another in excess of 3 acres or that had a market value of more than $100,000 or mining in excess of $50,000 shall within 30 days of acquisition, file forms with the secretary of state. Ohio Rev. Code secs. 5301.254, 5301.99(A).

Restrictions on Inheritance

Aliens may hold, possess, and enjoy lands either by descent, devise, gift, or purchase, as fully as U.S. citizens. Ohio Rev. Code sec. 2105.16.

Restrictions on Corporations, Business Entities

Corporations have reporting requirements for real property and minerals and a penalty for noncompliance. Ohio Rev. secs. 5301.25.4, 5301.99(A).

Oklahoma

Restrictions on Ownership in General

No alien who is not a U.S. citizen shall acquire title to any real property. Okla. Const. art. XXII, sec. 1. Aliens who cease to be bona fide residents of Oklahoma shall divest themselves of all real property within 5 years of ceasing to be a bona fide resident. Okla. Stat. tit. 60, secs. 121 to 123.

Restrictions on Inheritance

An alien may inherit land, but if not a resident of Oklahoma, he must dispose of it within 5 years. Okla. Stat. sec. 60-123.

Restrictions on Corporations, Business Entities

Corporations may hold land within municipal limits. Corporations may also hold land outside municipal limits to the extent necessary for their business purposes, but landholding itself is not such a legitimate business purpose. Okla. Const. art. XXII, sec. 2. Specific limitations on a corporation holding land. Okla. State. tit. 18, secs. 1.20, 1.21, 951 to 956. Case law puts restrictions on alien land ownership to alien corporations except for alien corporations authorized to business in Oklahoma. State v. Hillcrest Inc., 630 P.2d 1253 (Okla. 1981).

Oregon

Restrictions on Public/State Land

Any individual 18 years or older and who is a U.S. citizen or has declared an intention to become a citizen may apply to purchase state lands. Application for purchase of unappropriated public domain of the U.S. and the making of mining claims are limited to U.S. citizens or persons who have declared intention to become a citizen. Or. Rev. Stat. secs. 273.255, 517.010, 517.044.

Pennsylvania

Restrictions on Ownership in General

Aliens may hold lands as fully as natural-born citizens if under 5,000 acres or with net annual income of under $20,000/year. Pa. Stat. tit. 68, sec. 28, 32. Alien enemies excepted. 68 Pa. Stat. sec. 24. A nonresident alien who becomes a resident alien of some state in U.S. may acquire and hold agricultural land on same terms as citizens, but whenever such resident ceases to be a bona fide resident, he has 3 years to alienate his interest in agricultural land over 100 acres unless acquired by inheritance, devise, or debt security, or right to hold is secured by treaty; biannual reports must be transmitted to Dept. of Agriculture; violation may result in forfeiture to state. Pa. Stat. tit. 68, secs. 41-47.

Restrictions on Inheritance

Aliens may take, hold, and dispose of realty be devise or descent. 20 Pa. Stat. secs. 2104.2518; tit. 68, sec. 22. No persona shall be qualified to serve as personal representative who is nominee of any beneficiary, legatee or person who is citizen or resident of any county, outside the U.S. when it is doubtful that such person will have actual benefit, use enjoyment, or control of money or property. 20 Pa. Stat. sec. 3156. Alien enemies excepted. 68 Pa. Stat. sec. 24.

Rhode Island

Restrictions on Ownership in General

Aliens may take, hold, transmit, and convey real estate with the same effect as if they were U.S. citizens. R.I. Gen. Laws secs. 34-2-1.

South Carolina

Restrictions on Ownership in General

Real and personal property may be taken, acquired, held, disposed of by alien and foreign corporations in the same manner as natural-born citizen. S.C. Code sec. 27-13-10. No alien or corporation controlled by aliens may own or control more than 500,000 acres acquired by foreclosure; must be disposed of within 5 years unless controller grants additional period. S.C. Code secs. 27-13-10 to 27-13-40.

Restrictions on Inheritance

No person is disqualified to take as an heir because he, or a person through whom he claims, is or has been an alien. S.C. Code sec. 62-2-112.

Restrictions on Corporations, Business Entities

No corporation controlled by aliens may own or control more than 500,000 acres of land. S.C. Code secs. 27-13-10 to 27-13-40. Tax assessment is different if the corporation has more than 10 stockholders, a stockholder who is not an individual, a nonresident alien stock holder, or more than 1 class of stock. S.C. Code sec. 12-43-220(d).

South Dakota

Restrictions on Ownership in General

Any person, whether citizen or alien, may take, hold, and dispose of property with exceptions for corporations provided in section 47-8-33. S.D. Comp. Laws sec. 43-2-9. See also S.D. Const. art. IV., sec. 14.

Restrictions on Inheritance

Resident aliens may acquire an interest in agricultural land, but must dispose of land in excess of 160 acres within 3 years of termination of residency. S.D. Comp. Laws secs. 43-2A-1 to 43-2A-7.

Restrictions on Corporations, Business Entities

A foreign corporation acquiring property after July 1, 1967 must have a certificate of authority. S.D. Comp. Laws sec. 47-8-33. All corporations are prohibited from owning farm land with certain exceptions. S.D. Comp. Laws sec. 47-9A-1 to 22.

Tennessee

Restrictions on Ownership in General

An alien, resident or nonresident, may take and hold property and dispose of or transmit in the same manner as a natural citizen. Tenn. Code sec. 66-2-101.

Restrictions on Inheritance

Heirs and devisees of an alien may take any lands as if a U.S. citizen. Tenn. Code sec. 66-2-102.

Texas

Restrictions on Ownership in General

An alien has the same real and personal property rights as a U.S. citizen. Tex. Prop. Code sec. _____. U.S. citizen. Tex. Prop. Code sec. 5.005.

Restrictions on Inheritance

No person is disqualified to take as an heir because he or a person through whom he claims is or has been an alien. Tex. Prop. Code sec. 41.

Restrictions on Corporations, Business Entities

Private corporations may only purchase land necessary for corporations to do business or pay debts. Interpreted broadly, this language covers most ownership of real estate. Alien corporations receive the same treatment as U.S. corporations outside Texas. Tex. Bus. Corp. Act. secs. 2.01 to 2.02. An instrument relating to real or personal property may not be recorded or provide constructive notice unless it is in English or a correct English translation is recorded with the original instrument and the accuracy of the translation is sworn to before an officer authorized to administer under oath; if acknowledged outside the U.S., it must also have an apostille that complies with the Hague Convention. Tex. Prop. Code sec. 11.002.

Utah

Restrictions on Inheritance

No person is disqualified to take as an heir because he or the person through whom he claims is an alien. Utah Code sec. 75-2-112.

Vermont

Restrictions on Ownership in General

Every person of good character, having first taken an oath of allegiance to this state, may purchase, acquire, hold, and transfer land or other real estate; and after 1 year’s residence shall be entitled to all rights of a natural-born subject of this state. Vt. Const. ch. II, sec. 62. There is no express statutory restriction on alien ;land ownership and the Vermont Supreme Court expressed an unwillingness to so construe the constitutional provision or to enforce any claim against the land or nonresident aliens. State v. Boston, Concord & Montreal RR Co., 25 Vt. 170 (1853).

Restrictions on Corporations, Business Entities

Alien corporations are included in definition of foreign corporations and upon qualification, enjoy the same rights and privileges as domestic corporations. Vt. Stat. tit. 11, secs. 2101 to 2102.

Virginia

Restrictions on Ownership in General

Any alien, not an enemy, may acquire by purchase or descent and hold real estate and the same shall be transmitted in the same manner as real estate held by citizens. Va. Code sec. 55-1. Virginia’s Foreign Agriculture Investment Disclosure Act has reporting requirements. Va. Code secs. 3.1-22.22 to .27.

Washington

Restrictions on Ownership in General

Aliens are authorized to acquire and hold lands by purchase, devise, or descent and to convey, mortgage and transfer by devise and descent as native citizens of the State or of the U.S. Wash. Rev. Code sec. 64.16.005.

Restrictions on Inheritance

Aliens are authorized to acquire and hold lands by purchase, devise, or descent and to convey, mortgage and transfer by devise and descent as native citizens of the State or of the U.S. Wash. Rev. Code sec. 64.16.005.

Restrictions on Corporations, Business Entities

Alien corporations are statutorily treated as foreign corporations and upon qualification, enjoy the same rights and privileges as domestic corporations. Wash. Rev. Code secs. 23A.04.010(2), 23A.32.050(1).

West Virginia

Restrictions on Ownership in General

No distinction shall be made between resident aliens and citizens as to the acquisition, tenure, disposition, or descent of property. W. Va. Const. art. II, sec. 5. An alien is authorized to take land be devise, inheritance, gift, or purchase and to hold, convey, and dispose of land by devise and descent as if he were a citizen. W. Va. Code sec. 36-1-21.

Restrictions on Inheritance

An alien is authorized to take land by devise, inheritance, gift, or purchase and to hold, convey, and dispose of land by devise and descent as if he were a citizen. W. Va. Code secs. 36-1-21, 42-1-4.

Restrictions on Corporations, Business Entities

Alien corporations are statutorily treated as foreign corporations. W. Va. Code secs. 31-6(j), 31-1-53(a)(1), 31-1-54(a). upon qualification, foreign corporations enjoy the same rights and privileges as domestic corporations, including power to buy and sell real property. Every corporation holding more than 10,000 acres of land in W. Va. must apply to the secretary of sate for a special certificate authorizing such holding and pay a tax. W. Va. Code sec. 11-23-75.

Wisconsin

Restrictions on Ownership in General

No distinction shall ever be made by law between resident aliens and citizens in reference to the possession, enjoyment, or descent of property. Wis. Const. art. I, sec. 15. nonresident aliens and corporations are limited to t640 acres unless U.S. treaty exists and subject to land-use restrictions, reporting requirements, divestiture, forfeiture, and penalties enforced by state attorney general after July 1, 1982. Wis. Stat. secs. 182.001, 710.01 to .03, 863.37 to 863.39.

Restrictions on Inheritance

An alien may acquire lands by devise or descent as if he were a native citizen of Wisconsin or U.S. Wis. sec. 710.01. If laws, executive orders or regulations of the U.S. prohibit payment or if it appears that a legatee or a distributee of an estate or trust will not receive his payment, the court may order funds deposited in the state treasury for deposit of claims until a proper claim is made. Wis. Stat. sec. 863.37.

Restrictions on Corporations, Business Entities

No alien corporation or corporation in which more than 20% of the stock is held by nonresident aliens may acquire or hold more than 640 acres. Wis. Stat. sec. 710.02. Corporations are generally prohibited from owning land on which to carry on farming operations with certain exceptions. Wis. Stat. sec. 182-001.

Wyoming

Restrictions on Ownership in General

No distinction shall ever be made by law between resident aliens and citizens as to the possession, taxation, enjoyment, and descent of property. Wyo. Const. art. I, sec. 29. Nonresident aliens ineligible for citizenship are prohibited form acquiring, possessing, inheriting real property under penalty of felony except for use as personal residence not to exceed one acre, but this section does not apply to nonresident aliens whose foreign country grants reciprocal rights. Wyo. Stat. secs. 35-15-101 to -106. Any transfer of real property to any interest therein to any nonresident alien ineligible to citizenship is void unless reciprocal rights (exist?). Wyo. Stat. sec. 34-15-101.

Restrictions on Inheritance

A nonresident alien shall not acquire real property by succession or testamentary disposition unless reciprocal rights exist in the alien’s country of citizenship. Wyo. Stat. sec. 2-4-105.

The Tax Reform Act of 1984, amended 2001, imposed withholding obligations on conveyances of real estate by foreign persons on or after January 1, 1985 (26 USCA § 1445).

Tax of 10%. In general, any person (transferee/grantee) who acquires a property interest in United States real estate from a foreign person must withhold a tax of 10% of the amount realized by the grantor (foreign person) or any lesser amount established by agreement with the I.R.S. The transferee is required to report and pay any tax withheld by the 10th day after the date of transfer (Form 8288 and Form 8288-A). However, if an application for a withholding certificate was submitted no later than 30 days prior to the transfer, then the amount withheld need not be reported and paid to the I.R.S. until the 10th day after the I.R.S. determination as to the issuance of a withholding certificate. The contract price is generally equal to the amount realized by the transferor. The date of the transfer is the first date on which consideration (excluding earnest money) is paid or liability is assumed by the transferee.

Certificate of Non-Foreign Status. The transferee is not required to withhold if the transferor provides a certificate of non-foreign status. The transferee must retain the certificate until the end of the fifth taxable year following the taxable year in which a transfer takes place. The certificate must state that the transferor is not a foreign person and set forth the transferor’s name, identifying number and home address (in case of individual) or office address (in case of entity); and the transferee must sign the certificate under penalties of perjury. Any certificate by a foreign corporation stating that it is treated as a domestic corporation must attach a copy of the I.R.S. acknowledgment of such election. Two certificate forms as set forth in the regulations are available for use in transactions involving foreign persons. In order to enhance customer relations, it is advised that these certificates be used in all transactions unless otherwise instructed by the parties. The buyer should retain one original executed certificate and the title insurance agency should retain one executed certificate.

Sale is Less Than $300,000. The transferee has no obligation to withhold the 10% tax if the transferee is an individual acquiring the property for use as a residence and the amount realized is $300,000 or less.

Initial Payment Insufficient. The duty to withhold and the amount required to be withheld are not affected by the amount of cash paid by the transferee. If the transferee cannot withhold the full amount required because the first payment does not involve sufficient cash or other liquid assets, the transferee must obtain a withholding certificate from the Internal Revenue Service. As to dispositions taking place after December 31, 1984, the transferee is required to satisfy its withholding obligation from the initial installment payment unless it secures a withholding certificate from the Internal Revenue Service.

Gift of Property. Withholding is not required if the real property is transferred as a gift.

Penalties. The Internal Revenue Service may collect the amount of the tax and assess penalties and interest against the transferee for failure to deduct and withhold the 10% tax. In addition, the transferee may be subject to criminal penalties under Section 7202 of the Internal Revenue Code. Corporate officers of the transferee may be subject to civil penalties.

False Certificate. A transferee cannot rely upon the certificate if, prior to the time of the transfer, the transferee has actual knowledge that it is false or receives notice from the transferor’s agent or transferee’s agent that it is false. If the transferee receives notice that the certificate is false prior to payment of all consideration it must withhold 10% of the amount realized.

Foreclosure or Repossession. A party acquiring the property by foreclosure or repossession under a mortgage or deed of trust is required to withhold taxes at the time of repossession. If the transferee complies with the notice requirements of the regulations and provides the notice to the I.R.S., then the amount required to be withheld should be the lesser of 10% of the amount realized by the mortgagor on the transfer or the excess of the amount realized by the mortgagor over the debt secured by the property at the time of foreclosure. The special procedural rules do not apply to a deed in lieu of foreclosure. A withholding certificate must be sought in connection with such Deed. Apparently, however, the lender could secure at the time of the loan certificate that the mortgagor (who was later a transferor by foreclosure or deed) was not a foreign person if the lender did not later discover that this was untrue.

Reduced Withholding. Withholding may be reduced or eliminated by a withholding certificate issued by the Internal Revenue Service. Excuse from withholding may occur where the transferor is exempt from taxes, where no taxes are owed or pursuant to an agreement for payment of taxes. Otherwise, the I.R.S. may authorize reduced withholding. The Internal Revenue Service will act upon an application of either the transferor or the transferee for such withholding certificate not later than 90 days after receipt.

Notice of False Certificate. The transferor’s agent or transferee’s agent (e.g. broker or attorney) must notify the transferee of the agent’s knowledge that a certificate is false. Such notice must be in writing as soon as possible after learning of the false certification and not later than the date of transfer. The agent must send a copy of such notice to the Director of the Internal Revenue Service. The person is not treated as a transferor’s agent or transferee’s agent solely because the person receives and disburses the consideration, records documents in connection with the transaction, or types, copies or performs other clerical tasks. Depending upon the facts, it could be argued that escrow agents are agents of a transferor or transferee.

Notice to Transferee. If the title insurance agency is aware that a selling entity is or may be a "foreign person" because recorded documents in the chain of title reflect that the seller is a foreign entity such as a foreign corporation, it is suggested that the title agency notify the buyer in the form available through the references section at the beginning of this chapter. Although there should be no legal obligation to make such disclosure, this notice will certainly enhance customer relations. However, the title insurance agency should be certain of the facts before using such notice.

Written Escrow Instructions are Furnished. If written escrow instructions are furnished, the title insurance agent should add a disclaimer that the title insurance agency has no obligation to verify whether the transferor is a foreign person and that the transferee should seek legal advice on this issue unless the matter is otherwise handled, as by payment to the I.R.S.

Funds in Escrow. An escrow agreement signed by the title insurance agent and all parties addresses such issues as payment of interest on the escrowed funds, includes instructions concerning payment of the funds (e.g. to I.R.S. or to party to the transaction), and advises the buyer to seek independent legal advice and that the retention of escrowed funds may not be in compliance with the IRS requirements for withholding and payment to the IRS. The escrow agreement further advises that the title insurance agency is not giving legal advice.