Bart Binning: Issues of Non-Citizen Ownership of Oklahoma Property

Issues of Non-Citizen Real Property Ownership In Oklahoma
An "alien" who becomes a bona fide resident of the State of Oklahoma (resident alien) may acquire real property in Oklahoma (OS 22 § 1)
	The Oklahoma Taxpayer and Citizen Protection Act of 2007 (OS 21 § 446 (3)(B) ) "It shall be unlawful for any person to conceal, harbor, or shelter from detection any alien in any place within the State of Oklahoma, including any building or means of transportation, knowing or in reckless disregard of the fact that the alien has come to, entered, or remained in the United States in violation of law." This state law replicates the federal statute making it a crime to: move, transport, or attempt to transport persons known to be illegal aliens conceal, harbor, or shelter from detection in any place within the State persons known to be illegal aliens The Oklahoma State law provides an exception for the transportation or harboring of illegal aliens if it’s associated with the provision of any benefit guaranteed to illegal aliens by federal law, or regulated public health services provided by a private charity with private funds.
Understanding "Citizenship" Citizen - one who was born in the US, owes allegiance to the US, and is entitled to the enjoyment of full civil rights according to the constitution and laws of the US Naturalized Citizen - one who was not born a citizen, but has received citizenship under the laws of the US Alien - one who was born abroad and owes allegiance to a foreign (not the US) government Resident Alien - an Alien who has legally established residency in the US Non-Resident Alien - an Alien who has not legally established residency in the US, but is legally visiting the US (typically has obtained a tourist type visa)
	Non-Resident aliens of the State of Oklahoma may own 100% of corporations that are chartered by the Oklahoma Secretary of State. These Oklahoma State Chartered corporations may in turn own real property in the State of Oklahoma that is located in an incorporated city or town (OS 22 § 2). Corporations chartered by other states and territories of the United States may also own real property in Oklahoma, but may need to register with the Oklahoma Secretary of State as a "foreign corporation."
Without the benefit of a corporation acting as an intermediary, nonresident aliens cannot individually acquire real property in the State of Oklahoma, with one basic exception. Nonresident aliens may individually acquire real property in the State of Oklahoma under any legal proceeding foreclosing liens that may be adjudicated in favor of the nonresident alien. However, a nonresident alien must dispose of the real property within five (5) years from the date of acquiring title. [60 O.S. 2001, § 123.]
	If an alien was a resident of the State when they personally purchased real estate (did not use a corporation to purchase the property) and then moved out of the state (they are no longer bona fide residents of Oklahoma) they are required to sell the property within five years or the property is escheat, or forfeited to the State (60 O.S. 2001 § 122) subject to any mortgage that may be attached to the property.
An alien may not hold title to "fee simple absolute," but may hold title subject to conditions of 60 O.S. § 121 (Op. Atty. Gen. No. 76-253, 79-286) Typical Title Insurance Exception when a non-citizen purchases property: "Any adverse matters created by violation of Title 60, Oklahoma Statutes, §121, et. seq., or based on Article XXII, Section 1 of the Oklahoma Constitution, or any other similar statutory or constitutional provisions, which restrict alien ownership of real property in Oklahoma." A foreign government may not hold title to property in Oklahoma (Op. Atty. Gen. No. 76-253)
	The Foreign Investment in Real Property Tax Act (FIRPTA) requires that when purchasing real estate from a non-resident alien, the buyer must withhold a portion of the purchase price (usually 10% of purchase price). Foreign sellers should seek the advise of an attorney before entering into negotiations to sell property; prompt filing with IRS may reduce withholding requirements. If buyer is purchasing the property for use as a residence and amount is under $300,000, withholding may not be required. If a purchaser of property is not eligible for a Social Security Number, the IRS will issue an Individual Taxpayer Identification Number (ITIN) which may be obtained by filing IRS Form W-7, (PDF); allow 4 to 6 weeks for processing. Many title companies do not withhold or file the FIRPTA report.
Oklahoma 's Immigration Law
With the passage of HB 1804, many businesses may be affected by Oklahoma 's immigration reform measures. Key provisions of the bill include: Provisions implemented by state agencies effective November 1, 2007 include that state agencies are required to check the citizenship status of applicants: for state sponsored professional licenses (Real estate, physician, attorney, accountant, funeral director, etc.) and their direct and contract employees, as well as associated continuing education requirements for employment by state agencies The remaining provisions applying to the general public are scheduled to go into effect July 1, 2008, sections of this section have been stayed by a federal court judge. A business owner is to verify employment eligibility for each worker or withhold the maximum state tax from that worker’s pay. If an employer does not follow guidelines, they are liable for the tax. Private employers who have contracts with the state or who subcontract with a state contractor will be required to check the citizenship status of job applicants Private businesses contracting with the state that fail to make a good-faith effort to check the citizenship status of new hires may expose themselves to other penalties included in the law; if an employer fires a U.S. citizen while keeping an illegal alien on the payroll, the company could face a discrimination complaint - unless the business can show they make a good-faith effort to check immigration status	Verification of Status Employers are protected from prosecution under the bill if they comply with the requirements of the federal 1-9 form and check the immigration status of new hires using the Internet or a third-party investigator (http://www.uscis.qov/i-9) Federal Fair Housing While federal fair housing laws, which apply to sale or rental of housing and the provisions of mortgage loans, make it illegal to discriminate based on race or color, or national origin, religion, sex, familial status (children under 18) and disability, HB 1804 makes it illegal to house illegals. This situation creates new difficulties for landlords, who may run afoul of federal fair housing laws in questioning applicants regarding their immigration status. Yet, if they rent a property to an illegal alien, a landlord may be found guilty of the felony of harboring or sheltering an illegal alien. State Issues Licenses The new law will make it more difficult to obtain a state-issued identification card or a driver's license, requiring all applicants to provide documentation of their citizenship. Employees who legally immigrated to the U.S. and who previously had been issued a state-issued identification card or driver's license will not be able to renew those documents if their immigration documents expire.
Sources: Marie Price, "Immigration law hearing ends without injunction" The Journal Record, November 1, 2007 p 1A Janice Francis-Smith, "Attorneys: Immigration law concerns employers, others" The Journal Record, October 19, 2007 p 1A Janice Francis-Smith, "Immigration law may affect businesses sooner" The Journal Record September 13, 2007 p 1A Marie Price, "Judge dismisses immigration law challenge" The Journal Record, December 14, 2007 p 5A http://webserverl.lsb.state.ok.us/2007-08bilis/HB/HB1804 int.rtf
Any non-English language policy delivered or issued for delivery in this state shall be deemed to be in compliance with the Life, Accident and Health Insurance Policy Language Simplification Act if the insurer certifies that such policy is translated from an English language policy which does comply with said act. (36 OS 3644 B)	A signed or conformed copy of an opinion of counsel concerning the legality of the security being registered, with an English translation if it is in a language other than English, which states whether the security when sold will be validly issued, fully paid, and nonassessable and, if a debt security, a binding obligation of the issuer (71 O.S. § 1-304 (OSCN 2005) B15, Oklahoma Uniform Securities Act of 2004)