House committee substitute to the 3rd edition makes the following changes.
Makes changes throughout to refer to a "prohibited foreign party" instead of "adversarial foreign government." Amends the definitions in GS 64-62 as follows. Defines adversarial foreign government as a state-controlled enterprise or the government of a country or group subject to International Traffic in Arms Regulations in 22 CFR Part 126. Expands upon the definition of de minimis direct interest to also include ownership of land resulting from any passive ownership interest of a prohibited foreign party in an entity, provided that the prohibited foreign party does not possess, by virtue of that ownership interest or otherwise, the power to direct or cause the direction of the management or policies of the entity with respect to the interest in real property. Also expands upon the definition of foreign government to include federal or state recognized tribal governments. Amends the definition of military installations by removing Camp Butner and adding North Carolina National Guard facilities; adds the requirement that the North Carolina Real Estate Commission coordinate with the Department of Military and Veterans Affairs in developing, publishing, and maintaining a map with the bases and lines drawn for the applicable mileage from the military boundaries for public use. Amends the definition of party by no longer including individuals. Amends the definition of prohibited foreign party to include: (1) an adversarial foreign government or a foreign government formed within an adversarial foreign government (was, a foreign government formed within an adversarial nation), (2) a party other than an individual or a government created or organized under the laws of any state and a significant interest or substantial control is held or is capable of being exercised by an individual who is a citizen or resident of an adversarial nation (was, citizen or resident of an adversarial nation without regard to interest or control), (3) refers to entities or trusts instead of parties. Amends the definition of significant interest or substantial control by removing interests held by an individual. Removes the terms residence and resident alien.
Amends GS 64-63 as follows. Specifies that a prohibited foreign party must not hold any direct interest (was, interest) in the agricultural land or property situated within the specified area of a military installation. Expands upon the area within which a prohibited foreign party must not purchase, acquire, lease, or hold any direct interest in property situated around a military installation so that it is not within a 50-mile radius (was, 25-mile radius) of a military installation. Removes provisions related to resident aliens. Allows a prohibited foreign party that has acquired any direct interest in the described land before the country of residence was added to 22 CFR Part 126, to continue to own or hold that interest, but prohibits it from acquiring by grant, purchase, devise, descent, or otherwise, any additional interest in that land and requires registration with the Secretary of State. No longer requires prohibited foreign parties that have acquired the land to register with the Attorney General, only the Secretary of State. Instead of requiring a database, now requires the Secretary of State’s Office to produce monthly reports on the registered prohibited foreign parties. Amends the content of the registration form. Requires the Secretary of State to provide the registry to the Attorney General one year from the act becoming law and then every six months thereafter. Changes the due date of the affidavit that a purchaser of the specified land is not a prohibited foreign party from at the time of purchase to no later than the time of closing. Provides that no individual, real estate broker, or any other entity, other than a prohibited foreign party, will bear any civil or criminal liability for failing to obtain, maintain, or otherwise comply with the affidavit (was, failure to obtain or maintain the affidavit does not result in civil or criminal liability to any person or entity, unless the person or entity is in violation of (k), or subject any nonparty to the purchase to civil or criminal liability, unless a nonparty to the purchase has actual knowledge that the transaction will result in a violation of this statute).
Makes additional conforming and technical changes.
Makes conforming changes to GS 161-14.04 and GS 1-507.24.
Changes the effective date from December 1, 2025, to December 1, 2026.
Adds, effective when the act becomes law, that the North Carolina Real Estate Commission, in coordination with the Department of Military and Veterans Affairs, must develop and publish the map described in GS 64-62(6) by December 1, 2026, and must maintain the map by publishing an updated version annually each December 1st thereafter.
Bill Summaries: all (2025-2026 Session)
-
Bill S 394 (2025-2026)Summary date: May 12 2026 - View summary
-
Bill S 394 (2025-2026)Summary date: Apr 29 2025 - View summary
Senate committee substitute to the 2nd edition makes the following changes.
Amends GS 64-61 which details General Assembly findings.
Amends GS 64-62(3)a., which is part of the list within the definition of de minimis direct interest pertaining to the ownership interest in the company. Changes a. to include ownership interest in the company that is less than 10% (was, 5%) of any class of registered equities and removes ownership interest in the company that is less than 5% in the aggregate in multiple classes. Adds that ownership of registered equities is determined by processes established under federal law.
Amends GS 64-62(6), which provides the definition for military installation to add Camp Butner to list of facilities in the definition. Adds clarifying language that the term includes any military training facility located in the state (was, any facility located within the state) that is subject to installations’ oversight and control. Adds that the term does not include churches, schools, offices, or residential facilities outside the defined boundaries of the definition’s named facilities and that it does not include temporary military operations areas.
Amends GS 64-62(11)b. and GS 64-62(11)c. by correcting cross-references.
Amends GS 64-63(a), concerning prohibitions against foreign parties purchasing, acquiring, leading, or holding any interest in the provided list, by changing subdivision (2) to interest in property (was, land) situated within a 25-mile radius of a military installation and removing subdivision (3) entirely, pertaining to land underneath special use airspace.
Amends GS 64-63(b) by adding that a party may not knowingly hold land as an agent, trustee, or other fiduciary for a prohibited foreign party in violation of GS 64-63 (was, that a party could not hold the land as an agent, trustee, or other fiduciary for a prohibited foreign party).
Amends GS 64-63(c) by adding a requirement that the Secretary of State and the Attorney General (AG) maintain a joint database that is accessible and searchable by the public of foreign parties registered on each agency’s website. Adds country of citizenship and residency status or country of incorporation of the owner of the land or the owner of the interest in the land to the list of information the registration form must include.
Amends GS 64-63(d) by adding that a failure to file a registration with the Secretary of State and/or (was, and) the AG is subject to the penalties detailed in the subsection. Adds stipulation to when an unpaid balance of any penalties assessed under subsection (d) is a lien against the land, which is that it becomes a lien if a Notice of Foreign Ownership Violation Lien has been recorded by the AG in the office of the register of deeds in the county where the property is located. Adds that the lien will have priority from the date and time it is recorded and must be enforced by the AG.
Amends GS 64-63(f) to clarify that the affidavit required by this subsection does not need to be notarized but must be attached as an exhibit to the deed or other document that conveys ownership interest in the land. Adds that the failure to obtain or maintain the affidavit will not result in civil or criminal liability to any person or entity, unless the person or entity is in violation of GS 64-63(k).
Now requires the AG to initiate an action for receivership of the property to enforce violations of GS 64-63 (was, required the AG to seek a judicial sale of the subject property) when the AG receives information that leads them to believe that the prohibited foreign party has not divested from the subject property. Instructs that any interest in real property held or acquired in violation of GS 64-63 is subject to divestiture. Authorizes a noteholder to deem violations of GS 64-63 by an adversarial foreign government a default under a loan, mortgage, or deed of trust, which triggers an automatic right to trigger default. Specifies that the responsibility for determining whether an individual or other entity is subject to new Article 4, pursuant to either civil or criminal law, rests solely with the adversarial foreign government and the State and no other individual or entity. Removes general misdemeanor provisions for violations of GS 64-63. Expands the misdemeanor liability for knowingly selling an interest in land subject to the statute to those who have actual knowledge that the transaction will result in a violation of this section but aid and abet a party in knowingly selling such land. Specifies that it is an affirmative defense if the prohibited foreign party is a resident alien of the State. Instructs that an individual or other entity who is not an adversarial foreign government bears no civil or criminal liability for failing to determine or make inquiry of whether an individual or other entity is an adversarial foreign government. Specifies that Article 4 does not create a private right of enforcement.
Provides for a divestiture procedure in new GS 64-64, as follows. Authorizes the AG to use subpoena power as part of the office’s investigation into alleged violations of GS 64-63, as described. Sets forth four unique components of a receivership proceeding initiated under GS 64-64 including, preventing any proceeds of the receivership sale from being distributed to the adversarial foreign government, capping the amount a secured party may bid at a receivership sale at an amount that is not more than the amount owed plus costs incurred, and requiring the receiver to honor and give priority to any default that has been triggered on a loan, mortgage, or deed of trust prior to the commencement of a receivership.
Amends new GS 161-14.04 so that the register of deeds must attach the affidavit as an exhibit to the deed or other document as required under new Article 4 when recording a deed or other document that conveys an ownership interest in land that falls under GS 64-63 (was, required the register of deeds to mandate that the parties as grantor and grantee on the instrument provide information sufficient to establish their current citizenship, residential status, or for non-individual entities, the state or nation where the entity is organized under, prior to the recording of a deed or other document conveying an ownership interest in land. Provided for indexing of citizenship and residential status).
Makes conforming change to GS 1-507.24 to allow for a receiver to be appointed in accordance with GS 64-64.
-
Bill S 394 (2025-2026)Summary date: Apr 8 2025 - View summary
Senate committee substitute makes the following changes to the 1st edition.
Changes the type of land falling under the term interest in GS 64-62 from agricultural land to any land described in new GS 64-63(a) (i.e., agricultural land, land situated within a 25-mile radius of a military installation, or land situated underneath special use airspace, designated by the Federal 3 Aviation Administration (FAA), as defined). Changes references from “agricultural land” to “any land described in new GS 64-63” in GS 64-63(g), (i), and (j). Clarifies that new Article 4 applies to offenses committed on or after December 1, 2025.
-
Bill S 394 (2025-2026)Summary date: Mar 24 2025 - View summary
Section 1.
Enacts Article 4, “Prohibit Adversarial Foreign Government of Certain Lands,” to GS Chapter 64, as follows. Titled the NC Farmland and Military Protection Act. Contains findings of the General Assembly pertaining to State protection of military and farmlands. Defines adversarial nation as China, Iran, North Korea, and Russia. Sets forth ten other defined terms, including prohibited foreign party (meaning any of the five types of parties, including a citizen or resident of an adversarial nation or a foreign government formed within an adversarial nation, but excluding entities that engaged in the described activities with the Committee of Foreign Investment in the US). Defines military installation as Fort Bragg, Pope Army Airfield, Marine Corps Base Camp Lejeune, New River Marine Corps Air Station, Cherry Point Marine Corps Air Station, Military Ocean Terminal at Sunny Point, the United States Coast Guard Air Station at Elizabeth City, Naval Support Activity Northwest, Air Route Surveillance Radar (ARSR-4) at Fort Fisher, and Seymour Johnson Air Force Base, in its own right and as the responsible entity for the Dare 22 County Bombing Range, and any facility located within the State that is subject to the installations' oversight and control.
Enacts GS 64-63, prohibiting a prohibited foreign party from purchasing, acquiring, leasing, or holding any interest in the following: (1) agricultural land; (2) land situated within a 25-mile radius of a military installation; and (3) land situated underneath special use airspace, designated by the Federal Aviation Administration (FAA) (defined). Permits a prohibited foreign party that is a resident alien of the US to hold the land described above, upon the same terms as a US citizen during the continuance of their residence in the State. Prevents a prohibited foreign party from acquiring any interest in the above specified land, except for a de minimus direct interest (defined as any ownership of land resulting from ownership of registered equities in a publicly traded company owning the land and if the ownership interest in the company is either of the following: (1) less than 5% of any class of registered equities or less than 5% in the aggregate in multiple classes of registered equities; or (2) a noncontrolling interest in an entity controlled by a company that is both registered with the US Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940, as amended, and is not a foreign entity).
Bars another person from acting to hold land as an agent, trustee, or other fiduciary for a prohibited foreign party. Specifies that a prohibited foreign party is in violation of the act for as long as they continue to hold the specified land. Directs violating prohibited foreign parties to sell, transfer, or otherwise divest from the land within three years after acquiring the land. Directs the Attorney General (AG) to commence a court action for the sale of land if the prohibited foreign party owner does not divest from the land. Provides for proceeds of the sale to be distributed to lien holders in order of priority, then reasonable costs to the State, and finally the balance to the prohibited foreign party owner. Provides for recording by AG of the specified matters. Deems persons in violation of GS 64-63 to be guilty of a Class 2 misdemeanor. Provides for the establishment of resident alien status as an affirmative defense.
Authorizes a prohibited foreign party that acquired an interest in the land described above prior to the act’s effective date to continue to hold their interest in the land but cannot expand their interest in that land. Requires registration of the land with the Secretary of State (Secretary) and the AG. Provides for a registration form with specified information. Provides for civil penalty for failure to register of at least $1,000 for each day the registration is late. Directs that the unpaid balance constitutes a lien against the land. Provides for an affidavit executed by any purchase of the described land above attesting their compliance with GS 64-63. Clarifies that failure to obtain or maintain the affidavit does not affect the title or insurability of the title for the land or subject any nonparty to the purchase to civil or criminal liability, unless a nonparty to the purchase has actual knowledge that the transaction will result in a violation of this section. Directs the Real Estate Commission to establish the form affidavit.
Clarifies that title to agricultural land is not invalid or subject to divestiture due to a violation of GS 64-63 by any former owner or any other person holding or owning a former interest in the agricultural land. Makes it a Class 2 misdemeanor for a person to knowingly sell an interest in agricultural land in violation of GS 64-63.
Section 2.
Enacts GS 161-14.04, requiring the register of deeds to mandate that the parties as grantor and grantee on the instrument provide information sufficient to establish their current citizenship, residential status, or for non-individual entities, the state or nation where the entity is organized under, prior to the recording of a deed or other document conveying an ownership interest in land. Provides for indexing of citizenship and residential status.
Section 3.
Contains severability clause.
Section 4.
Effective December 1, 2025.