favor of the alien, may hold the land for five (5) years from the date of so acquiring such title. § 124: Non-compliant aliens holding title can convey fee simple before escheat proceedings are instituted. HOWEVER, if the conveyance is made to another alien or a citizen of the US “in trust” and for the purpose and intention of evading this article, said conveyance shall be null and void , and any such lands so conveyed shall be forfeited and escheated to the state absolutely. § 127: Once the lands are sold, the proceeds are held for owner, or his heirs or assigns for one (1) year. After one year the state is to distribute the proceeds to the state for the benefit of the state’s school fund. The alien owner, or their heirs, has two (2) years from the date the proceeds were turned over to apply for an order from the court saying the judgment was procured by fraud, mistake, or some material irregularity in the proceedings. Early Oklahoma case law surrounding alien land ownership focused largely on those alien persons called corporations. The term “corporation” originates from the Latin word Corpus , meaning body, and is a legal fiction of a group of owners being a single person under the law and of one interest. There is a long history of United States courts determining that corporations have the same legal protections as individuals, especially when dealing with property rights. 14 In Parwal Inv. Co. v. State , 15 the Oklahoma Supreme Court stated that Article 22, § 2 of the Oklahoma Constitution which prohibits corporations from owning rural farm land is valid. However, a statute rendering such a deed to an alien void was unconstitutional because the constitutional provision itself is not self-executing, meaning it does not automatically apply, but instead relies on the legislature to put the rules and procedures in place regarding alien ownership. 16 Thereafter, in State ex rel. Short v. Benevolent Inv. & Relief Ass’n. , 17 the Oklahoma Supreme Court ruled that, similar to an individual alien, if a corporation acquires land when it exists but the acquisition is ultra vires, 18 a corporation can lawfully convey good title UNTIL no escheat proceedings have been commenced.
Of course, the Courts are not the only source of interpretation of laws, and alien ownership of land has been a topic addressed by the Oklahoma Attorney General (hereinafter “AG”). One important AG function is to issue legal opinions to legislators or other state officers regarding questions of law. While binding on State, County, and Municipal officials, agencies, boards, and commissions, AG opinions are merely persuasive authority to courts which have wide discretion to follow, modify, or reverse. Therefore, State, County, and Municipal officials, agencies, boards, and commissions must act in accordance with an AG opinion unless or until the opinion is reversed by a subsequent AG opinion or by an Oklahoma or Federal court. 19 Which means that AG opinions can be very helpful in interpreting and implementing these laws for the day to day workings of the Oklahoma government and its subdivisions. Alien land ownership issues in Oklahoma were tackled by the AG in the following opinions: 1974 OK AG 214 o An alien may not hold title in fee simple absolute to real property. o A corporation or other entity may
hold real estate subject to the statutes regulating that particular type of entity, 20 but upon dissolution of the entity, an alien individual may not acquire title to that land. • MAY hold real estate …what the what? The math ain’t mathing (insert “hmm” emoji here) but keep reading. o A “Person” is more than a human being; person also includes bodies politic and corporate.
1976 OK AG 253
14.) “Person” includes bodies politic or corporate as noted in 25 O.S. § 16. See also, Terrett v. Taylor, 13 U.S. 43 (1815). 15.) 1918 OK 498. 16.) The Court referenced cases in California, Pennsylvania, and Kentucky that had the same holding based on those state laws. 17.) 1924 OK 1043. Interestingly, the lands had already been sold by the alien corporation, however oil and gas production due to the drilling of an oil well had made the lands quite valuable. 18.) Meaning acting or done beyond one’s legal power or authority. 19.) State ex rel. York v. Turpen, 1984 OK 26. 20.) Registration, or exemption, to do business in Oklahoma (see Cartwright, below).
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G rowth T hrough E ducat i on - A pr i l / M ay / J une 2024
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