OK Operations Summary

Licensed Entity:

• See Attached HUD Sample for Additional Information

Banking Information

• Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
• Checks stale dated after -- ___ days of issuance
• Good Funds Law -- No
• Disbursements Requirements -- None
• Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- No

Escrow/Settlement

• Who can prepare the HUD -- Not restricted
• Who can sign the HUD (EO/LTP/Attorney) -- Not restricted
• Who orders hazard insurance --
• When is transaction consummated for new HUDS --
• Record before/after disburse -- Disburse first
• Filed/restricted escrow rates -- No
• Record retention requirements --
• Is an attorney involved in the closing -- No
• Who can handle loan document signing -- Notary is permissible
• Doc/Deed Prep Restrictions -- No
• Use Escrow Instructions or not -- No
• Use Estimated HUD or Final -- Final
• Pass-thru charges -- Not restricted
• Rates Inclusive or not -- Not inclusive
• Up Charging -- Not restricted
• Junk Charges -- Not restricted
• Special HUD Requirements --
• Special Disclosures --
• CPL --
• UPL Issues -- Attorney must examine title and sign commitment/policy
• Joinder of non-titled spouse -- Yes --
• Survey Required --
  • Purchase – yes for extended coverage
  • Refinance – no

Audits

• Required -- Policy inventory every 2 years

Recording Process

• E-recording -- County list of e-recording attached
• Record before disbursement -- Disburse then record
• Special recording procedure -- Mortgage Tax Form must accompany mortgages

Recording/Document Requirements

• Marital Status Stated -- Not required
• Transfer Tax -- Yes
• Mortgage Tax -- Yes
• Address for grantor/grantee/property -- Address for all parties required
• Witnesses -- No
• Names typed/printed -- Yes
• Prepared by/return to -- Preparer name and address required; Return to address required on 1st page
• Notary Stamp/requirements --
• Parcel or tax index number --
• Recitation of Consideration -- Yes
• Derivation Clause --
• Corporate Signatures/Attestation --
• Ink Color/Font -- Black/10 pt minimum
• Legal Description -- Must include state, county & municipality in 1st paragraph
• Margins -- 1st page 3” top margin
• Other Special Recording: --

Document Types

• Conveyance -- Warranty Deed, Quitclaim Deed
• Security Instrument -- Mortgage
• Release -- Release of Mortgage or Quitclaim Deed

Tenancies

• Tenants in Common -- Yes
• Joint Tenants -- Yes
• Tenancy by Entireties -- Yes
• Community Property -- No
• Homestead -- Yes
• Joinder of Non-titled Spouse – Yes as to homestead property 16 O.S. § 4; 31 O.S. § 2

Taxes

• Taxes Levied -- In arrears
• Taxes due -- 11/1
• Delinquent -- 1/1

Commitment/Policy Special Requirements

• Who can sign Commitment/Policy -- Licensed OK attorney or Licensed OK abstractor who are appointed as an agent for a Title Insurance Company. 36 O.S. § 5001 (c).
• Other –

Payment Customs

• Owner’s/Loan Policy: The Purchaser typically pays for both the Owner’s and Loan Policies.
• Transfer Tax and Recording Fees: Paid by the Seller.
• Survey Charges: The Seller pays for the Mortgage Inspection report required by the lender, per contract. If the Purchaser requests a “PIN” Survey, he pays for the Survey. Sometimes negotiable.
• Closing/Settlement fees: Typically each pay 1/2 of the Closing/Settlement fees, But negotiable.
• 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.

Post Closing Requirements

• Recon follow up required –

Withholding Taxes

There is no statutory provision for withholding proceeds from a sale on transactions similar to FIRPTA.