TX Attorney General Opinion. TRS Investments. What is a security?

Texas Attorney General Opinion KP- 0328 answers whether real estate investments qualify as a security under Texas law.

The answer: it’s complicated

• The Texas Constitution still says investments must be in securities and hasn’t been updated to correct previous Attorney General Opinions that said no to investing in real estate
• But, the Texas State Securities Board notes that real estate investments can be in the form of a “real estate securities”
• it’ll depend on the individual investment