An important new statute in Oklahoma is set to go into effect next week, and while it has received only a little bit of attention thus far, it will affect every single deed filed in Oklahoma on and after November 1, 2023. Here’s a summary:
In response to a growing number of foreign-owned marijuana farming operations, the Oklahoma Legislature passed Senate Bill 212 which amends 60 O.S. 121 and tightens the restrictions on foreign ownership of land in Oklahoma. The text of the amended Section 121 can be accessed at the link below. Prior to the passage of SB 212, a foreign individual (who was not otherwise a bona fide resident of Oklahoma) could indirectly own land in Oklahoma only if the individual owned it through an entity organized under Oklahoma law or an entity that qualified to do business in Oklahoma.
As amended, the new law limits even “indirect” ownership by foreign individuals, unless the entity is “engaged in regulated interstate commerce in accordance with federal law.” As a means for enforcing this tightened restriction, every single deed to be filed in Oklahoma must contain an affidavit of the grantee verifying that the grantee is taking title in compliance with the new law.
The Oklahoma Attorney General’s office has promulgated forms of affidavits for the grantees, and those forms were just recently made public. All three forms are linked below. The new law, which goes into effect on November 1, 2023, will have a significant impact on real estate transactions in Oklahoma, and there will likely be questions regarding compliance with its requirements.
