SB 212 Legal Update
60 O.S. Chapter 3 Section 121, originally passed in 1910, prevents the ownership of land by non-U.S. Citizens and provides an enforcement mechanism through escheat proceedings by the Attorney General or District attorney. Essentially, if land is owned by a non-U.S. citizen, the State of Oklahoma may bring suit and obtain ownership of the property. Of course, as any good statute requires, there are many exceptions:
So, Non-U.S. citizens may own land in Oklahoma if:
They acquire said property by will, probate, or other devise/descent or by purchasing from a foreclosure in favor of said Alien — then they can hold the title for 5 years.
Not applied to bona fide residents during the continuance of that residence. If that residence ends, then the property must be sold within 5 years.
SB 212 edits and clarifies this statute to also include both directly (i.e. to a non-citizen individually) or indirectly (through a business or trust). This does not apply to businesses that are regulated in interstate commerce (i.e. regulated by Federal statutes). SB 212 also requires any deed recorded with the county clerk to also be accompanied by an affidavit. This affidavit must be signed by the person/entity coming into ownership and should state that the deed is in compliance with this statute and no funding source was used in violation of this or Federal statutes (money laundering, foreign investments etc.).
In order to have a full understanding of this statute, we have to understand what “non-U.S.” citizen means. The Federal definition includes anyone who has not been granted a permanent residence card. A visa alone is not enough for “citizenship” under this statute.
Finally, we must also consider what a “bona fide” resident means. As a matter of course, “bona fide” means something similar to a legal resident of the state. If the person intends to reside on the property for the majority of the year, then this statute should not be applicable to that property. However, if it is an investment property or owned by a trust/company — this statute likely prohibits ownership.
*For the full text and history of the Bill, visit here.