OK Underwriting Summary

Search/Exam

• Minimum Search Requirements -- Full abstract of title from statehood required for insurance – prior abstract can be brought forward if original is located
• Plant or other search restrictions -- Licensed abstractor must prepare/update abstract; attorney must exam title. All plants must be complete 1 O.S. § 21.
• Abstracting relating to court proceedings under the Simplification of Land Titles Act, 16 O.S. §62(b), (c) & (d), when instruments have been entered or recorded for 10 years or more, may be limited as provided in the statute. Oklahoma Title Standard No. 29.1, 29.6.
• Additional Requirements for REO Searches -- N/A
• Foreclosure Checklist -- N/A
• Special Searches Required (Code, HOA, Utilities)? -- N/A
• Survey Requirements --
  • Purchase – yes for extended coverage
  • Refinance – no
• The Marketable Record Title Act, 16 O.S. §§ 71 – 80 is remedial in character and can be relied upon as a cure or remedy for such imperfections as fall within its scope. Oklahoma Title Standard No. 30.1, 30.13.

UPL

• An opinion of title by an Attorney licensed to practice law in Oklahoma based upon an examination of a duly certified abstract of title prepared by a licensed and bonded Oklahoma Abstractor is required prior to the issuance of a Commitment or Policy of Title Insurance.
• Title companies, title agents and attorney agents must be licensed by the Oklahoma Insurance Department. 36 O.S. § 5001 (c); 36 O.S. § 1435.1 et seq; OID Rule 365:20-3-2.

Witness Requirements

• No witnesses are required on a Deed or Security Instrument, with the exception of an instrument executed by one who is unable to sign his/her name; i.e., execution by mark. 16 O.S. §34.

Mortgage/Transfer Tax

The current rate for mortgage tax is $ .10 per one hundred dollars of indebtedness for a maturity date of 5 years or longer; plus a mortgage certification fee of $5.00. This tax is uniform across the State. 68 O.S. §1904.

The current rate for deed transfer tax (documentary stamps) is $1.50 per thousand dollars of consideration (Sales Price). Round sales price up to the next thousand.

Spousal Joinder Requirements/Homestead

Joinder of Spouses is required for conveyance or encumbrance of a Homestead Property. 16 O.S. § 4; 31 O.S. § 2. There is a presumption that the requirement for joinder of spouses also applies to a Civil Union, although this topic is not addressed in the Oklahoma Statutes.

Who May Serve As Trustee On Deed Of Trust

• No Restriction on who may serve as Trustee, however Deed of Trust is statutorily “converted” into mortgage, so mortgage is customary security instrument.
• Oklahoma statutes provide for a Mortgage with a Power of Sale. The statutes provide for non-judicial foreclosure of a Mortgage with a Power of Sale. However, this mortgage alternative is not commonly used. 46 O.S. § 40 et seq.

Time Limitations

• US Judgment Liens -- 20 years, renewable for 20 years
• State Court Judgment Liens -- 5 years
• Federal Tax Liens -- 10 years (+30 days); can be refiled
• State Tax Liens -- 5 years
• Ad Valorem Taxes -- Ad Valorem Taxes, together with any interest, penalty and costs, which become a lien on real property, are deemed released and extinguished upon the expiration of 7 years after the date upon which they became due.

• Estate Tax Lien -- Federal 10 years
• State Inheritance Tax Liens --
• Mechanics Liens -- 4 months
• Financing Statements -- 5 years, can be renewed for 5 year term
• Mortgages -- No suit, action or proceeding to foreclose or otherwise enforce the remedies in any mortgage, contract for deed or deed of trust shall be had or maintained after the expiration of 7 years from the date of the last maturing obligation secured by such mortgage, contract for deed or deed of trust becomes due as set out therein. 46 O.S. § 301(B).
• HOA Liens --
• Condominium assessments --
• Child Support Liens –

Odd Stuff

• Title Insurance rates and fees are not regulated in the State of Oklahoma. A commitment fee or cancellation fee may be charged in Oklahoma.
• The Seller customarily pays for the abstracting and examination fees. These fees must be charged as a separate fee on the HUD. All-Inclusive fees are prohibited by statute.
• Neither Title insurance rates nor forms and endorsements are filed or promulgated in Oklahoma.
• Usury coverage is available in Oklahoma, by issuance of ALTA Endorsement 27-06 (Usury) (10-16-08), and requires approval of Underwriting. Add exception at the end of the provision to “except to any claim that the rate of interest exceeds 45% per annum.” 14A O.S. §3-605; 14A O.S.

• §5-107. The parties to a loan, other than a consumer loan, may agree for payment of any loan finance charge not in excess of the 45% rate specified in Section 5-107.