Effective May 6, 2026, Utah law bars restricted foreign entities from acquiring land and sets out how the state handles suspected prohibited transfers.
An entity is restricted if a covered foreign entity owns at least 25% of it, and restricted entities may not acquire an interest in Utah land.
After a county recorder reports a possibly prohibited land transfer, the department must send the parties a letter unless that would interfere with its duties. An entity that does not answer within 30 days may face a daily fine and a forced sale of its land interest.
People may not knowingly buy or lease Utah land for a restricted foreign entity using its money or direction. Individual land buyers must disclose if they served in such an entity's military; violations are third-degree felonies.
Utah law bars a restricted foreign entity from acquiring an interest in land. The definition includes entities linked to listed military companies, China, Iran, North Korea, or Russia, and entities in which a covered entity owns at least 25%. Land includes Utah real property except property owned, controlled, or held in trust by the federal government. These provisions take effect May 6, 2026.
After a county recorder reports a possibly prohibited land transfer, the Department of Public Safety must send a letter to the parties unless doing so would interfere with its duties. The process follows a county recorder's report of a land transfer the recorder suspects is prohibited. The letter says the department suspects an entity is restricted, and the entity must provide evidence to overcome that presumption. If the entity does not provide enough evidence within 30 days, the department must notify it that it must sell its interest within one year or the Division of Facilities Construction and Management will sell it. The department must notify the county recorder and coordinate the sale with the attorney general and that division. The department may fine an entity $500 for each day it does not respond after the 30-day period ends. It may not impose the fine on or after the day the land interest is sold. The 30-day response period starts when the entity receives the letter. If it fails to overcome the presumption, it must sell its interest within one year or the state division will sell it; daily fines may begin after the response period and end when the interest is sold.
A person may not knowingly buy or lease land on behalf of a restricted foreign entity using that entity's funds or under its direction. An individual buying land must disclose prior service in a restricted foreign entity's military. The purchase rule applies to people acting on behalf of a restricted foreign entity; the disclosure rule applies to individuals purchasing an interest in land who served in a restricted foreign entity's military. The individual must disclose the military service to the county recorder using the required form. A person who violates the purchase restriction or an individual who fails to disclose the service is guilty of a third-degree felony. These provisions take effect May 6, 2026.
No hearings or votes scheduled.