With the enactment of Senate Bill 212, Oklahoma tightens the reins on foreign land ownership, taking effect on November 1, 2023. This initiative comes in the wake of increased foreign-owned marijuana farming operations. The amended law now restricts indirect land ownership by foreign individuals unless engaged in regulated interstate commerce as per federal law.
A crucial compliance requirement is the submission of a specific affidavit with every deed filed, verifying adherence to the new law. The Oklahoma Attorney General’s office has delineated three affidavit forms catering to different entities – individuals, non-exempt businesses or trusts, and exempt businesses or trusts.
To abide by this law, follow these steps:
- Understanding Your Entity Type:
- Determine whether you fall under an individual, a non-exempt business or trust, or an exempt business or trust.
- Accessing the Appropriate Affidavit Form:
- Obtain the relevant affidavit form from the Oklahoma Supplemental Deed Forms.
- Affidavit for Title or Ownership of Land – Individual: This affidavit is likely for individuals who are acquiring land or property in Oklahoma. It would typically require personal identification details and a declaration of compliance with the new foreign ownership restrictions.
- Affidavit for Title or Ownership of Land – Non-exempt Business or Trust: This form is presumably for businesses or trusts that do not fall under certain exemptions provided by the law. It may require details about the business or trust, and a declaration of compliance with the foreign ownership restrictions.
- Affidavit for Title or Ownership of Land – Exempt Business or Trust: This affidavit is likely for businesses or trusts that are exempt from the new restrictions, possibly those engaged in regulated interstate commerce as per federal law. It might also require details about the business or trust along with a declaration of compliance.
- Completing the Affidavit:
- Fill in the required details on the affidavit form which will primarily include verification of your title or ownership compliance with the new law.
- Filing the Affidavit with the Deed:
- Ensure that the completed affidavit is included with every deed filed post-November 1, 2023.
- Seeking Legal Advice:
- Given the significant impact on real estate transactions, it’s advisable to consult with a legal professional to ensure full compliance with the new Oklahoma land ownership law.
Adhering to these steps will streamline your compliance with Oklahoma’s revamped land ownership law, ensuring a smooth transition in your real estate transactions.
About the law
Section 60 O.S. § 121 of Oklahoma law primarily revolves around the restrictions placed on land ownership within the state, particularly concerning non-U.S. citizens. Here’s a simplified breakdown of this law:
- Restriction on Land Ownership:
- The law states that aliens or individuals who are not U.S. citizens are prohibited from acquiring or owning land in Oklahoma. This is a measure to control foreign ownership of land within the state.
- Exceptions:
- While the law restricts land ownership by non-citizens, it does mention exceptions without specifying them in the provided text. These exceptions might be elaborated in other sections or related statutes.
- Ownership of Personal Property:
- Despite the land ownership restrictions, non-U.S. citizens are allowed to own personal property in Oklahoma. The rights related to personal property ownership for non-U.S. citizens are equivalent to those of U.S. citizens, as governed by the laws of the non-citizen’s home country and any existing treaties between that country and the U.S.
- Amendment for Regulated Interstate Commerce:
- The law has been amended to exempt businesses engaged in regulated interstate commerce, according to federal law, from these restrictions.
- Marijuana Farming Operations:
- The amendment to this law was in response to a growing number of foreign-owned marijuana farming operations in Oklahoma, which led to the tightening of restrictions on foreign land ownership.
- Legal Implications:
- Violating these land ownership laws could potentially lead to legal repercussions, although the specifics may need to be understood in consultation with a legal professional.
In a nutshell, while Oklahoma law restricts land ownership by non-U.S. citizens, it does allow for personal property ownership and has certain exceptions to the land ownership rule, which now include businesses involved in regulated interstate commerce. The recent amendment was largely driven by the aim to control foreign ownership of marijuana farming operations within the state.
Completing the affidavits
Affidavit of Land or Mineral Ownership: Individual form (OAG 2023-1 – INDIVIDUAL)
- Title and Exhibit: The form serves as an exhibit to the deed of a land or mineral ownership transaction.
- Jurisdiction: It’s under the jurisdiction of the State of Oklahoma and should be submitted to the Attorney General of the State of Oklahoma.
- Affiant Identification: The individual, also referred to as the “Affiant,” must provide their legal name and any aliases. This section requires a notary acknowledgment.
- Personal Knowledge and Title Acquisition: The Affiant must declare having personal knowledge of the statements made within the affidavit and acknowledge the acquisition of the title to the property identified in the accompanying deed.
- Citizenship Declaration: The Affiant must declare whether they are a citizen of the United States or an alien who is a bona fide resident of the State of Oklahoma.
- Legal Compliance: The Affiant must acknowledge understanding of section 60 O.S. § 121 of Oklahoma law, which restricts aliens or non-U.S. citizens from acquiring or owning land in Oklahoma, except under certain conditions. This includes the acknowledgment that a business entity engaged in regulated interstate commerce in accordance with federal law is exempt from these restrictions.
- Title Acquisition Compliance: The Affiant must declare that the title acquisition complies with the requirements of 60 O.S. § 121 and that no illegal funding sources were used in the transaction.
- Acknowledgment of Legal Liability: The Affiant acknowledges understanding the legal liabilities associated with making false statements in the affidavit, including potential criminal prosecution for perjury and/or being liable for actual damages.
- Signature and Notarization: The Affiant must sign the affidavit, and a notary public must acknowledge the signature, providing their commission expiration date and number.
This affidavit form is structured to ensure compliance with Oklahoma’s law regarding land or mineral ownership, particularly focusing on the restrictions pertaining to foreign ownership. It requires a clear declaration of citizenship status and compliance with the law, with the involvement of a notary public to authenticate the Affiant’s identity and acknowledgment.
Affidavit of Land or Mineral Ownership: Business or Trust form (OAG 2023-2 – NON-EXEMPT BUSINESS/TRUST)
- Title and Exhibit: The form is an exhibit to a deed concerning land or mineral ownership for a business or trust within the State of Oklahoma.
- Jurisdiction: The affidavit is to be submitted to the Attorney General of the State of Oklahoma.
- Affiant Identification: The affiant (the person making the sworn statement) must provide their legal name and any aliases. They must be 18 years of age or older, and have personal knowledge of the statements made in the affidavit.
- Role and Entity Identification:
- The affiant must specify their role (e.g., titled officer or trustee) within the business, trust, or other legal entity (referred to as the “Entity”) taking title to the property.
- The legal name of the Entity, along with any trade or fictitious names, should be provided.
- Legal Compliance: The affidavit must be executed in accordance with 60 O.S. § 121, which restricts land ownership by non-U.S. citizens, whether directly or through a business entity or trust. However, businesses engaged in regulated interstate commerce are exempted from these restrictions.
- Title Acquisition Compliance: The affiant must declare that the title acquisition complies with the requirements of 60 O.S. § 121 and that no illegal funding sources were used in the transaction.
- Citizenship or Residency of Parties Involved:
- If the Entity is a trust, the affiant must confirm that all grantors, trustees, and direct and contingent beneficiaries are U.S. citizens or bona fide residents of Oklahoma.
- If the Entity is a business, the affiant must confirm that all direct and indirect owners are U.S. citizens or bona fide residents of Oklahoma.
- Acknowledgment of Legal Liability: The affiant acknowledges the legal liabilities associated with making false statements in the affidavit, including potential criminal prosecution for perjury and/or being liable for actual damages.
- Signature and Notarization: The affidavit must be signed by the affiant, both individually and as an authorized agent of the Entity. A notary public must acknowledge the signature, providing their commission expiration date and number.
This affidavit form is tailored for businesses or trusts that are non-exempt under the new land ownership law, ensuring they meet the criteria set forth in the law, particularly concerning the citizenship or residency status of those involved in the Entity.
Affidavit of Land or Mineral Ownership: Exempt Business or Trust form (OAG 2023-3 – BUSINESS/TRUST EXEMPTION)
- Title and Exhibit:
- This affidavit acts as an exhibit to a deed concerning land or mineral ownership for an exempt business or trust within Oklahoma.
- Jurisdiction:
- The affidavit should be submitted to the Attorney General of the State of Oklahoma.
- Affiant Identification:
- The affiant, who must be 18 years of age or older, provides their legal name and any aliases, affirming personal knowledge of the statements within the affidavit.
- Role and Entity Identification:
- The affiant specifies their role (e.g., titled officer or trustee) within the business, trust, or other legal entity (referred to as the “Entity”) that took title to the property.
- The legal name of the Entity, along with any trade or fictitious names, should be provided.
- Legal Compliance:
- The affidavit references 60 O.S. § 121, which restricts land ownership by non-U.S. citizens, either directly or through a business entity or trust. However, exemptions are provided for businesses engaged in regulated interstate commerce as per federal law.
- Engagement in Regulated Interstate Commerce:
- The affiant acknowledges the definition of “engaged in regulated interstate commerce in accordance with federal law” as either being expressly permitted by, or not prohibited by federal law.
- It’s also acknowledged that entities engaged in or supporting marijuana cultivation in Oklahoma do not fall under the definition of “engaged in regulated interstate commerce in accordance with federal law.”
- Title Acquisition Compliance:
- The affiant confirms that no illegal funding sources were used in the sale or transfer of the property in violation of section 121 or any other state or federal law.
- Acknowledgment of Legal Liability:
- The affiant acknowledges the legal liabilities associated with making false statements in the affidavit, including potential criminal prosecution for perjury and/or being liable for actual damages.
- Signature and Notarization:
- The affidavit must be signed by the affiant, both individually and as an authorized agent of the Entity. A notary public must acknowledge the signature, providing their commission expiration date and number.
This affidavit is tailored to ensure that exempt businesses or trusts comply with Oklahoma’s land ownership law while declaring their engagement in regulated interstate commerce, which is the basis for their exemption from the restrictions placed on non-U.S. citizens or entities under this law.
Supporting References
Oklahoma Attorney General’s Office: https://www.oag.ok.gov/articles/drummond-praises-signing-laws-combat-illegal-marijuana-operations