During the 2023 legislative session, the Oklahoma Legislature passed Senate Bill 212 which amended 60 Okla. Stat. §121 to require that all deeds filed with a county clerk in Oklahoma must include an affidavit executed by the grantee attesting that they are taking title in compliance with the state laws on foreign ownership of land. These laws require that the grantee is either a U.S. Citizen, a Native American born in the United States, an alien, or a person who is not a U.S. citizen, but who is or may become a bona fide resident of Oklahoma, or a business entity or trust which is similarly either owned by U.S. citizens or aliens who are or may become bona fide residents of Oklahoma. Under Oklahoma law, a person is a bona fide resident if they have an honest, good faith intent to make Oklahoma their place of residence or domicile.
This amendment, which became effective November 1, 2023, does not change who is eligible to purchase property in Oklahoma. If a person, entity, or trust was able to purchase property before this amendment went into effect, they may still purchase property now. The amendment simply adds the procedural requirement that a person, entity, or trust coming into title must execute an affidavit to enable the county clerk to file a deed. The affidavit requires the grantee to attest that they (1) are either a U.S. Citizen or an alien who is or may become a bona fide resident of Oklahoma, (2) are at least eighteen years of age, (3) have personal knowledge of these facts, (4) acknowledge the law on foreign ownership of property, and (5) acknowledge compliance with the general ban on using prohibited funding sources under 60 O.S. §121 or any other state or federal law. If the grantee is a business entity, the attestation must state that the individual executing the affidavit on behalf of the entity is an officer or trustee of the entity and that the entity’s direct and indirect owners are U.S. Citizens or bona fide residents of Oklahoma. Additionally, business entities formed in other states or countries should register their business entity with the Oklahoma Secretary of State to be considered a bona fide resident. If the grantee is a trust, its trustees and direct and contingent beneficiaries must be U.S. Citizens or bona fide residents of Oklahoma.
The grantee, usually someone purchasing property, is ultimately responsible for executing the affidavit in order for the county clerk to be able to record their deed. Without this affidavit, the county clerk will not be able to record any deed including all real estate and mineral deeds. Any professional involved in real estate transactions should communicate with their clients and potential buyers to inform them of the citizenship and affidavit requirements early in the process to ensure that they know that filing this affidavit will now be required in order to be able to record their deed.
Written By: Libby Smith, Attorney at Law
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