On November 1, 2023, a significant statutory amendment came into effect in Oklahoma, impacting the process of filing deeds for record in any county across the state. This amendment mandates that an affidavit must be completed and attached as an exhibit to all deeds, certifying compliance with laws restricting the acquisition of Oklahoma property by alien persons or entities. This blog will guide you through the new requirements and their implications for property transactions in Oklahoma.
Understanding Senate Bill 212 and Its Implications
Oklahoma has long enforced restrictions on land and mineral ownership by alien persons or entities, with certain exceptions for those deemed "bona fide residents" of the state. Senate Bill 212, passed in the 2023 legislative session, introduced key amendments to this existing framework, codified at 60 O.S. § 121. Here are the two critical changes you need to know:
- Prohibition on Indirect Acquisition:
The new statutory language in subsection A explicitly prohibits both direct and indirect acquisition of title to Oklahoma property by alien persons or entities through business entities or trusts, except as otherwise permitted. Previously, indirect ownership through domestic or domesticated entities was not clearly prohibited. Now, non-exempt businesses and trusts must certify that all direct or indirect owners, trustees, and beneficiaries are either U.S. citizens or bona fide residents of Oklahoma. An exemption is provided for business entities engaged in regulated interstate commerce according to federal law.
- Mandatory Affidavit for Deed Recording:
Subsection B requires that every deed recorded in Oklahoma must include an affidavit, executed by the grantee(s), attesting compliance with the new law and confirming that no funding source is used in violation of this or any other state or federal law. The Oklahoma Attorney General has provided form affidavits to comply with this statute, available on their official website.
Key Requirements for the Affidavit
To ensure compliance, all deeds presented for recording on or after November 1, 2023, must attach the statutory affidavit as an exhibit. The affidavit must certify:
- The grantee's compliance with 60 O.S. § 121.
- That no funds used in the transaction violate state or federal law.
Additionally, a $2 per page fee will be added to the filing fee for the affidavit. Without this affidavit, deeds cannot be recorded.
Practical Steps for Compliance
To navigate this new requirement, follow these steps:
- Prepare the Affidavit:
Ensure that the grantee(s) complete the affidavit provided by the Oklahoma Attorney General, accurately certifying compliance with the statute.
- Attach the Affidavit:
Include the completed affidavit as an exhibit to the deed.
- Verify Details:
Double-check all information to avoid discrepancies that could lead to the rejection of the deed filing.
By understanding and adhering to these new legal requirements, individuals and entities involved in property transactions in Oklahoma can ensure smooth and lawful processing of deeds.
For more detailed guidance and to ensure your property transactions comply with these new regulations, reach out to GAC to schedule a consultation. Our legal experts are here to assist you with navigating these changes and ensuring all your documentation meets the statutory requirements.