{"data":{"id":"us-ok/okla.-stat.-tit.-18-18-1020","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 18, § 18-1020","heading":"Limitations Upon Real Estate Ownership","body":"LIMITATIONS UPON REAL ESTATE OWNERSHIP\n\nA. No corporation of any sort, whether coming within the\n\ngeneral scope of the Oklahoma General Corporation Act or not, except\n\nas provided for in this section, shall own, hold, or take any real\n\nestate located in this state outside of any incorporated city or\n\ntown, or any addition thereto.\n\nB. The provisions of the Oklahoma General Corporation Act shall\n\nnot be construed to prohibit the owning, holding or taking of: 1.\n\nSuch real estate as is necessary and proper for carrying on the\n\nbusiness for which any corporation has been lawfully formed or\n\ndomesticated in this state;\n\n2. Naked title to real estate by any trust company, as trustee,\n\nto be held solely as security for indebtedness pursuant to such\n\ntrust or as trustee of an express or testamentary trust for the\n\nbenefit of natural persons;\n\n3. Any real estate mortgage held by any corporation to secure\n\nany loan or debt; 4. Any real estate acquired by any corporation\n\nupon the foreclosure of any real estate mortgage held by such\n\ncorporation or acquired in the collection of any loan or debt due\n\nsuch corporation, except as provided for in subsection C of this\n\nsection; or\n\n5. Any real estate acquired by any corporation for lease or\n\nsale to any other corporation, if such latter corporation could have\n\nlegally acquired the same in the first instance.\n\nC. Any real estate located in this state outside of any\n\nincorporated city or town, or any addition thereto, acquired by any\n\ncorporation by mortgage foreclosure or in collection of debt as\n\nprovided for in paragraph 4 of subsection B of this section, shall\n\nbe sold and disposed of within seven (7) years from such\n\nacquisition.\n\nD. The provisions of subsections A through C of this section\n\nshall not apply to religious, educational, charitable or scientific\n\ncorporations, owning or holding taxable property.\n\nE. 1. Any person who takes or holds any real estate for the\n\nuse or benefit of any corporation with the intent of evading the\n\nprovisions of this section, shall, upon conviction, be deemed guilty\n\nof a misdemeanor and punished by a fine of not less than Fifty\n\nDollars ($50.00) nor more than Five Hundred Dollars ($500.00) or by\n\nimprisonment in the county jail for a term not less than thirty (30)\n\ndays nor more than six (6) months, or by both such fine and\n\nimprisonment.\n\n2. Any corporation that fails or refuses to file a statement as\n\nrequired by the provisions of subsection F of this section shall,\n\nupon conviction, be deemed guilty of a misdemeanor and punished by a\n\nfine not exceeding One Thousand Dollars ($1,000.00).\n\nF. 1. On or before the first day of April of each year, every\n\ncorporation holding any real estate in contravention of the\n\nprovisions of this section shall file in the office of the county\n\nclerk of each county where such real estate is located, a statement\n\nin duplicate containing the legal description of each tract, piece,\n\nor parcel of real estate so owned or acquired, the date of the\n\nacquisition of each tract, piece, or parcel, the amount of the last\n\npreceding assessed valuation thereof and the purpose and method of\n\nthe acquisition thereof. The statement shall be verified by the\n\noath of an officer or duly appointed agent of the corporation.\n\n2. The county clerk shall keep a permanent index and record of\n\neach statement filed by corporations pursuant to the provisions of\n\nthis subsection in a permanent record book, which shall be in the\n\nform prescribed by the State Auditor and Inspector. One copy of\n\neach statement so filed shall be retained as a part of the permanent\n\nrecords of the office of the county clerk.\n\n3. Within thirty (30) days after the statement provided for in\n\nparagraph 1 of this subsection is filed, the county clerk shall\n\ndeliver the other duplicate to the district attorney of such county.\nCorporations Page 328\n\nform prescribed by the State Auditor and Inspector. One copy of\n\neach statement so filed shall be retained as a part of the permanent\n\nrecords of the office of the county clerk.\n\n3. Within thirty (30) days after the statement provided for in\n\nparagraph 1 of this subsection is filed, the county clerk shall\n\ndeliver the other duplicate to the district attorney of such county.\n\nG. 1. Any corporation owning or holding any real estate in\n\nviolation of the provisions of subsections A through E of this\n\nsection, in addition to other penalties provided for in the Oklahoma\n\nGeneral Corporation Act, shall be required to pay, for each year, or\n\nfraction thereof, during which such title or interest is thus\n\nunlawfully owned or held, the following penalties:\n\na. For the first year, one percent (1%) of the assessed\n\nvalue of such real estate unlawfully owned or held;\n\nb. For the second year, two percent (2%) thereof;\n\nc. For the third year, three percent (3%) thereof;\n\nd. For the fourth year, four percent (4%) thereof;\n\ne. For the fifth year, five percent (5%) thereof;\n\nf. For the sixth year, six percent (6%) thereof; and\n\ng. For each year thereafter, six percent (6%) thereof.\n\n2. Provided, however, that no corporation shall be subject to\n\nmore than one penalty, for each calendar year, for each tract, piece\n\nor parcel of real estate thus held in violation of the provisions of\n\nthis section, but the penalties provided for in paragraph 1 of this\n\nsubsection shall be cumulative.\n\n3. In determining the penalty under this subsection, the\n\nassessed value of the real estate fixed for the purpose of levying\n\nad valorem taxes, which last shall have become due and payable\n\npreceding the date of the accrual of such penalty, shall be taken.\n\n4. The penalties, upon collection, shall be immediately paid\n\nover to the Commissioners of the Land Office for credit to the\n\npermanent school fund of this state created pursuant to Section 2 of\n\nArticle XI of the Oklahoma Constitution.\n\n5. The state shall have a lien against any piece, parcel or\n\ntract of real estate to secure the payment of all penalties,\n\ninterest, and fees accruing from such unlawful owning or holding of\n\nany such real estate; provided, that such lien shall not attach\n\nthereto, or in any way affect the title thereof, until an action to\n\nsubject such real estate to such lien and a foreclosure thereof has\n\nbeen instituted in the district court of the county where such real\n\nestate is located. Filing of such action shall be notice lis\n\npendens and anyone thereafter acquiring any such real estate shall\n\ntake it subject to such lien.\n\nH. 1. Whenever the district attorney of any county has reason\n\nto believe that any real estate located in such county is owned or\n\nheld by a corporation in violation of the provisions of this\n\nsection, the district attorney shall give written notice to such\n\ncorporation that:\n\na. it is subject to the penalties provided for in this\n\nsection;\n\nb. such penalties must be paid to the district attorney\n\nwithin thirty (30) days from the date of such notice;\n\nand\n\nc. there is additionally due and payable to the district\n\nattorney a collection fee equal to fifteen percent\n\n(15%) of the total penalties collected as to any\n\ntract, piece or parcel of real estate which is\n\nunlawfully owned or held. If the institution of an\n\naction is necessary to procure a judgment for the\n\ncollection of such penalties, the collection fee shall\n\nbe increased to twenty-five percent (25%) of the\n\npenalty recovered, and in no event less than One\n\nHundred Dollars ($100.00). Such fee shall be retained\n\nby the district attorney as remuneration for services\n\nrendered in collecting such penalties, which shall be\n\nin addition to any compensation otherwise provided for\n\nby law.\n\n2. In the event such penalty shall not be paid within thirty\nee shall\n\nbe increased to twenty-five percent (25%) of the\n\npenalty recovered, and in no event less than One\n\nHundred Dollars ($100.00). Such fee shall be retained\n\nby the district attorney as remuneration for services\n\nrendered in collecting such penalties, which shall be\n\nin addition to any compensation otherwise provided for\n\nby law.\n\n2. In the event such penalty shall not be paid within thirty\n\n(30) days from the date of such notice, the district attorney shall\n\ninstitute an action in the name of the state in the district court\n\nof the county where such real estate is located for the recovery of\n\nthe penalties, together with interest thereon at the rate of ten\n\npercent (10%) per annum from the date of such notice, the collection\n\nfee provided for in paragraph 1 of this subsection, all costs of the\n\naction, and for a further judgment establishing and foreclosing any\n\nlien created pursuant to the provisions of paragraph 5 of subsection\n\nG of this section, unless the real estate which is alleged to have\n\nbeen unlawfully owned or held, is disposed of prior to the\n\ncommencement of the action.\n\na. The petition in such case shall set forth:\n\n(1) a description of the real estate which is alleged\n\nto have been unlawfully owned or held;\n\n(2) the names, as defendants, of the corporation and\n\nall persons alleged to be unlawfully holding the\n\nreal estate;\n\n(3) if the establishment and foreclosure of a lien\n\nupon such real estate is sought in the action,\n\nthe names as defendants, of all persons claiming\n\nreal estate, including all tenants and persons in\n\nactual possession thereof; and\n\n(4) the facts and circumstances in consequence of\n\nwhich it is alleged that such real estate is\n\nowned or held in violation of the provisions of\n\nthis section.\n\nb. The filing of such petition, and all other procedures\n\nrelating thereto, in all respects shall be governed by\n\nand subject to the same laws as in other civil\n\nactions.\n\nc. If the state recovers a judgment against such\n\ncorporation in such action, the judgment shall include\n\nand be entered for:\n\n(1) the amount of the penalties for which the\n\ncorporation is found liable pursuant to the\n\nprovisions of this section;\n\n(2) interest on such penalties at the rate of ten\n\npercent (10%) per annum from the date such\n\npenalties become due and receivable pursuant to\n\nthe written notice provided for in paragraph 1 of\n\nthis subsection;\n\n(3) a collection fee of twenty-five percent (25%) of\n\nsuch penalties recovered, which fee shall not be\n\nless than One Hundred Dollars ($100.00);\n\n(4) the entire costs of the action; and\n\n(5) if the establishment and foreclosure of a lien\n\nupon the real estate is prayed for in the\n\npetition, a decree establishing such lien upon\n\nsuch real estate and an order of foreclosure.\n\nd. Upon the judgment becoming final, an execution shall\n\nissue for the collection thereof.","path":["OK Code","Title 18"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os18.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"a0a88c0b2c78e9bea1b94fd160f2ba1052e80e47417d3f7a7739e8719d593a8c","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-18-18-1019","next":"us-ok/okla.-stat.-tit.-18-18-1021"},"notice":"GroundRules: Original legal text. Not legal advice."}