By Rob Garbrecht

This article will familiarize the reader with some of the unique issues, local laws, and customary practices that should be considered in connection with the acquisition of commercial real estate in Oklahoma. Real estate continues to be one of the substantive areas of the law where it remains critical to get the advice of local professionals. The variation among states concerning particular issues can be significant. These variations are often the result of specific state constitutional and statutory provisions, case law, or simply the result of the development of customary practices over a period of time. Failure to recognize and address these variations can result in unnecessary expenditure of time and money or, worse, the incurrence of significant unexpected liabilities or costs.

While this article will not necessarily address all the nuances of Oklahoma real estate law, it will highlight and discuss those variations which, in the author’s experience, are some of the more significant unique aspects of Oklahoma law in order to sensitize out-ofstate buyers to these issues. In addition, this article will provide some initial guidance to a buyer as to how to navigate these issues in connection with the possible acquisition of Oklahoma commercial real estate and hopefully avoid any “gotcha” instances where the buyer experiences an unwelcome surprise due to an unexpected issue.

1. Issues raised by the “oil patch” nature of Oklahoma

Several of the unique aspects of Oklahoma commercial real estate law arise as a direct result of Oklahoma’s historical oil and gas development practices. For example, in Oklahoma landowners commonly “sever” the rights to the underlying minerals from the rights to the surface of the real property. Further, it is very common in Oklahoma for the mineral estate underlying a particular surface estate to eventually be fractionalized among a number of different mineral owners.

The holder of the “mineral estate” in Oklahoma is entitled to the minerals and related rights, including the right to access and extract the minerals. The holder of the “surface estate” retains the balance of the rights related to the property. The mineral estate is the “dominant estate” in Oklahoma, meaning that the surface owner must allow the mineral owner reasonable access to develop the minerals underlying the surface estate, which includes the right to use so much of the surface of the land as is reasonably necessary to explore for and extract oil and gas from beneath the surface.[1] Many potential out-of-state buyers are initially concerned about how oil and gas development activity may adversely affect the surface estate to be acquired, especially if they are not from a jurisdiction with similar oil and gas development activity.

Buyers of real property in other states frequently attempt to mitigate this exposure, to the extent they are concerned with the possibility of development of the mineral estate, by securing title insurance coverage for damages caused by the extraction or development of the oil, gas, or other minerals. For example, in some jurisdictions the ALTA Endorsement (Minerals and Other Subsurface Substances – Improvements) (Adopted ), and other similar state-specific endorsements, can provide insureds some protection against such damage.

In , however, the Oklahoma Insurance Commissioner issued an opinion that such coverage falls within the definition of “property insurance”, rather than “title insurance” and, therefore, is outside of the title insurer’s Certificate of Authority issued by the Oklahoma Insurance Commissioner.[2] As a result of that opinion, the title insurance industry in Oklahoma will not give any coverage to Oklahoma surface owners with respect to damages to the surface estate as a result of actions of owners of the mineral estate. Thus, title insurance policies in Oklahoma almost universally only cover the surface estate and include a special exception expressly excluding from coverage “all interests in and to all oil, gas, coal, and other minerals and all rights pertaining thereto” or similar language.

Without access to title insurance coverage, many times out-of-state buyers will consider ascertaining the owner(s) of the mineral estate and securing agreements from them not to engage in activities detrimental to the surface estate. While it is certainly possible to perform a mineral estate title examination to identify the various mineral owners, the fractionalization of mineral interests often makes obtaining agreements with all fractional mineral owners and lessees extremely difficult, if not impossible, to secure. Moreover, even if the number of mineral owners and lessees is relatively small, they have little incentive to cooperate. These difficulties, combined with the time and cost associated with a mineral estate title examination, frequently result in surface owners relying on other legal mechanisms and considerations to help alleviate the concerns associated with the development of the mineral estate.

One such legal mechanism is the application of the Oklahoma Surface Damage Act (the “Surface Damage Act”)[3] which provides surface owners some protection by establishing a framework for measuring (and providing compensation for) damages caused to the surface estate due to the drilling of an oil and gas well. The Surface Damage Act was enacted to balance the conflicting interests of the mineral owner and the surface owner.[4] Generally, an operator must provide notice to the surface owner of the operator’s intent to drill a well on the surface owner’s property, which notice must contain “a designation of the proposed location and the approximate date that the operator proposes to commence drilling.” Within five days thereafter, the operator and surface owner must enter into good faith negotiations to determine the amount of surface damages owed. If the operator and surface owner cannot reach an agreement regarding the amount of damages owed, the Surface Damage Act provides a mechanism for appraisal and possible litigation to determine the appropriate amount of damages.

The Surface Damage Act does not specify the type of damages for which the surface owner is to be compensated and does not provide guidelines for imposing liability. However, case law indicates that the proper (and primary) measure of damages is the diminution in fair market value of the surface resulting from the drilling operations.[5] Courts consider the following factors in determining the effect of drilling operations on the fair market value of the surface estate: (1) the location or site of the drilling operations; (2) the quality and value of the land used or disturbed by the drilling operations; (3) incidental features resulting from drilling operations which may affect use and further enjoyment; (4) inconvenience suffered in actual use of the land by the operator; (5) whether the damages are temporary or permanent in nature; (6) changes in physical condition of the land; (7) irregularity of shape and reduction, or denial, of access to the land; and (8) the destruction or loss of native grasses or growing crops caused by drilling operations.[6] Further, the Oklahoma Court of Civil Appeals has recognized that the detrimental effect that perceived limitations on potential use, caused by a nearby oil or gas well, may have on the fair market value of property is a proper consideration in determining damages.[7]

Certain state and local regulations may also alleviate a surface owner’s concerns that an oil and gas operator might drill a well and place related equipment on his property. At the state level, Title 52, Section of the Oklahoma Statutes prohibits the location of a habitable structure within a radius of feet from the well-bore of an active well. Notably, Section focuses on the location of a habitable structure in proximity to an existing well, rather than addressing the drilling of a new well within feet of an existing habitable structure. However, the Oklahoma Supreme Court has recognized that the purpose of the prohibition contained in Section is the “welfare and safety of the public.”[8] Thus, an Oklahoma court could certainly interpret Section so that it would be unlawful to locate the wellbore of an active well within a radius of feet from an existing habitable structure.

Oklahoma counties also frequently impose restrictions on the location of oil and gas wells and equipment. For example, in Oklahoma County, “a minimum separation of feet is required between any primary residential structure and all primary and incidental oil and gas drilling operations, including, but not limited to, oil and gas wellheads, oil and gas storage apparatus and tank batteries, and equipment.”[9] In Tulsa County, “oil and gas wells and related storage tanks shall be located feet or more from any residence.”[10]

At the municipal level, Oklahoma City and Tulsa have identical provisions relating to the permissible location of an oil and gas well. Each city prohibits an oil and gas well or associated equipment from being located “nearer than feet to any occupied or unoccupied dwelling or any other building used or designed and intended to be used for human occupancy unless the applicant has obtained written permission for the location of the well from all owners and lessees whose dwellings or other subject buildings are within feet of the proposed well.”[11] The phrase “building used… for human occupancy” would appear to be considerably broader than either “primary residential structure” or “residence,” and, ostensibly, would include facilities used for commercial purposes.

In and apparently in response to attempts by municipalities to enact more stringent oil and gas regulations, the Oklahoma legislature passed Section of Title 52 of the Oklahoma Statutes which places limits on county and municipal regulation of oil and gas operations. More specifically, counties and municipalities are expressly allowed to enact reasonable ordinances concerning road use, noise, and odors incidental to oil and gas operations and establishing setbacks and fencing requirements for oil and gas work site locations. The regulation of all other oil and gas operations is made subject to the exclusive jurisdiction of the Oklahoma Corporation Commission. While there are no reported cases addressing this statute, there is an Oklahoma Attorney General Opinion providing some clarification, including recognition that Section is intended to allow counties and municipalities to regulate only those specifically enumerated areas.[12] However, the county and municipal ordinances dealing with well site locations would appear to fall within the statutory grant of regulating authority to counties and municipalities.

While it is certainly understandable that an out-of-state buyer may initially have some concerns about how the development of the mineral estate may affect the real property it is contemplating acquiring in Oklahoma, most buyers ultimately get comfortable with this issue for the reasons discussed above. Drilling technologies, including horizontal or slant drilling techniques, have also evolved to a point where interference with the surface estate can frequently be minimized.

2. Ad valorem taxes

Oklahoma’s ad valorem tax framework consists of both constitutional and statutory provisions. The Oklahoma Constitution contemplates that the Oklahoma legislature may create different classes of property for ad valorem tax purposes.[13] Based on this provision, the Oklahoma legislature created various classes of property, including real property and personal property.[14] Section of Title 68 of the Oklahoma Statutes provides that “[r]eal property, for purposes of ad valorem taxation, shall be construed to mean the land itself, and . . . all buildings, structures and improvements and other fixtures.”

Based on this classification, the Oklahoma Supreme Court rejected a claim that a leasehold estate should be subject to ad valorem taxation stating that:

[u]nder the taxing scheme presently in force, tax liability for all cognizable interests in land is borne by the fee owner. Each parcel of property is treated as a unit; one value is assigned to it and one tax assessed. . . . The statutory scheme calls for assessment of land for ad valorem purposes against the person or entity identified by the record as the fee owner.[15]

The Oklahoma Supreme Court in Rockwell Int’l Corp. v. Clay[16] reaffirmed its ruling in Barnes by stating that “[the Oklahoma Supreme Court] hold[s] today that leasehold interests in real property may not be taxed ad valorem separately from the fee estate.” Thus, in Oklahoma the owner of the land and improvements is the party responsible for ad valorem taxes on such real property.[17]

Except with respect to property of public service corporations, utilities, and railroads which is centrally assessed by the State Board of Equalization, the county assessors in Oklahoma are charged with determining the fair cash value of the real property as of January 1 of the year in question.[18] If the assessor increases the valuation over the preceding year, it must notify the taxpayer in writing of such increase.[19] The taxpayer has 30 days from the date the notice was mailed within which to appeal the increase by filing a complaint with the assessor.[20] From that point forward, there is an administrative appeal process that culminates in the right to appeal to district court de novo should the matter not be resolved.[21]

Oklahoma ad valorem taxes are paid in arrears with the taxes being due on November 1 and delinquent on December 31; provided, however, if one-half of the taxes is paid by December 31, the remaining one-half can be deferred until March [22] As a rule of thumb, ad valorem taxes in Oklahoma range from 1% to 1½% of the value of the property per year, but this can vary somewhat by county. The invoices are generally sent out by the county treasurer sometime in October.

If a sale of real property closes before October, the county assessor will typically send the invoice for the ad valorem taxes for that year to the buyer. Conversely, if the sale closes in October or later, the county assessor will send the invoice to the seller. If the sale closes prior to October and the property is part of a larger tax parcel, the county assessor will generally create a new tax parcel for the property being sold and send the invoice for that property to the buyer. However, in the situation where property constituting a portion of a tax parcel is sold in October or later, the parties should consider either paying the taxes for that year in connection with the closing or, alternatively, escrowing their respective portion of such taxes to ensure they are timely paid as the county assessor will likely not be able to generate separate invoices for the new tax parcel covering the property sold and the existing tax parcel covering the remainder of the property.

Article X, § 8B of the Oklahoma Constitution caps increases in fair cash value for ad valorem tax purposes to five percent per year,[23] but provides that the cap is lifted if title to the real property is transferred, changed, or conveyed to another person or when improvements have been made to the property. While the Oklahoma Statutes allow for certain related-party transfers of title to take place without lifting of the cap,[24] a buyer of significantly appreciated Oklahoma property in a more traditional acquisition should be cautioned that the acquisition of the property could result in a significant increase in the ad valorem taxes on the property.

Such an increase can be particularly troublesome if the property the buyer is purchasing is subject to a triple net lease that excludes from the definition of operating expenses, or otherwise prohibits the landlord from passing back to the tenant, ad valorem taxes that result from a change in ownership of the leased property.

While such a lease provision may not necessarily be common, some sophisticated tenants may negotiate for the inclusion of such a provision in their leases. If a tenant is successful in that regard, this can present one of those “gotcha” instances to a buyer of the leased property, especially if the buyer only becomes aware of its inability to pass back such increase in ad valorem taxes after the closing without any advance discussions.

In certain instances where real property has been owned by the same entity over a number of years and the property has significantly increased in value over those years, a buyer might consider the acquisition of the equity interests in the owner entity as opposed to the acquisition of the property. Such a strategy would likely only be practically possible if the owner entity is a special purpose entity with its only asset being the property in question. One possible advantage to a buyer of such a structure would be to avoid the increase in ad valorem tax valuation due to sale of the property.

Another reason parties may ultimately agree on a sale of equity structure as opposed to a more traditional real property conveyance structure is a situation where the owner entity may have certain permits or contractual rights which are uniquely advantageous and perhaps difficult or impossible for a buyer to retain or replicate if it were to acquire the real property directly from the owner entity. In addition, as more fully discussed in Section 3 of this article, the Oklahoma documentary stamp tax is generally not applicable to a sale of equity interests in an owner entity. Because the documentary stamp tax is customarily paid for by the seller, this is more of an advantage to the seller but would obviously be taken into consideration by the parties in negotiating the entirety of the transaction. Finally, depending on the circumstances, there may also be certain unique Oklahoma income tax advantages to a seller in selling the equity of an entity that owns real property in Oklahoma as opposed to the sale of the underlying real property but a discussion of those rules is rather complex and beyond the scope this article.[25]

Oklahoma has a number of exemptions from ad valorem taxation. In particular, Oklahoma provides a five year ad valorem tax exemption for a qualifying manufacturing concern that constructs any new or expands or acquires any existing manufacturing facilities provided certain requirements are met.[26] This particular exemption can provide significant financial advantages and is frequently cited as a reason for out-of-state manufacturers locating new manufacturing facilities in Oklahoma.

Further, any property used exclusively for religious or charitable purposes or for nonprofit schools or colleges is also exempt from ad valorem taxation. For purposes of this latter exemption, the usage of the property for the exempt purpose is determinative to establish the exemption and not the ownership of such property. So, for instance, in In re Real Property of Integris Realty Corp.,[27] a case handled by our firm, the Oklahoma Supreme Court reaffirmed that title to the property in question is irrelevant when determining whether the property is “used exclusively” for charitable purposes within the meaning of article X, Section 6 of the Oklahoma Constitution, and the focus is on the physical use of the property in question.

3. Documentary stamp tax and sales tax

Oklahoma imposes a transfer tax on sales of real property where the consideration exchanged exceeds $[28] The tax is equal to 75 cents for each $ of consideration.[29] The seller usually pays for the documentary stamp tax, although the Oklahoma Statutes allow either the seller or the buyer to pay the tax.[30] The requisite stamps are affixed on the face of the deed at the time of recording and the county clerk must be presented an affidavit, contract, closing statement, or other evidence establishing the purchase price.[31] The local newspaper, brokers, and other business publications are then able to report on significant land sales by simply reviewing the recorded deeds weekly since the purchase price is readily determinable by reviewing the recorded deed. The Oklahoma Statutes provide for exemptions from the tax for specified conveyances.[32] If a conveyance is exempt from the Oklahoma Documentary Stamp Tax, the deed should contain a reference to the statutory basis for the exemption.[33] Any person who willfully fails to purchase and affix the exact amount of requisite documentary stamps commits a criminal offense.[34]

A purchaser of property will often receive a questionnaire from a county assessor with regard to a recent acquisition of property. Because the documentary stamps are affixed to the deed, the county assessor may use this valuation as a starting point for valuing the property for ad valorem tax purposes. However, the county assessor will want to know if there were other circumstances surrounding the sale that may impact the valuation. For example, valuation could be impacted if the sale was between related parties or either the seller or buyer was involved some unique situation at the time that may have impacted the negotiated consideration. Further, although the documentary stamp tax is based on the consideration exchanged for the real property, sometimes taxpayers erroneously include consideration exchanged for property other than real property, i.e., fixed assets, inventory, or intellectual property, and these questionnaires are intended to ferret out these circumstances as well. Taxpayers are obligated to respond to such requests for information.[35]

The Oklahoma documentary stamp tax statutes contain an express exclusion from imposition of the documentary stamp tax for “deeds pursuant to which property is transferred from a person to a partnership, limited liability company or corporation of which the transferor or the transferor’s spouse, parent, child, or other person related within the second degree of consanguinity to the transferor . . . are the only owners of the partnership, limited liability company or corporation.”[36] However, the statutory provision further contains an express statement that if the ownership of the equity interests in the newly-created entity is transferred within one year to any other third party, the owner entity transferring those interests is obligated to pay the Oklahoma documentary stamp tax that would have otherwise been due on the transfer to the newly-created entity but for this exemption.[37]

The logistics of paying the applicable documentary stamp taxes on the transfer of equity interests are not exactly certain as the deed to the newly-created entity will have already been recorded, presumably with the reference to the applicable statutory exemption referenced on the deed. Thus, it is unclear how the payment of the tax would be evidenced on the recorded deed. In that regard, however, one should bear in mind that as previously noted it is a criminal offense to willfully fail to pay and affix the requisite documentary stamps.

Oklahoma also imposes a state sales tax on the sale of tangible personal property that is not otherwise exempt.[38] The state sales tax rate is % of the gross proceeds or gross receipts from the sale of taxable tangible personal property.[39] Any county of Oklahoma may levy a sales tax not to exceed 2% of the gross proceeds or gross receipts derived from sales in the county on which the state levies a sales tax.[40] Finally, incorporated cities and towns may also levy a sales tax.[41] So, for example, in Oklahoma City, Oklahoma County, Oklahoma, the current aggregate state, county and city sales tax rate is %. The sales tax is paid by the buyer and collected and remitted by the seller to the Oklahoma Tax Commission.[42]

The Oklahoma Statutes contain exemptions from Oklahoma sales tax for transfers of tangible personal property to corporations, partnerships, and limited liability companies in connection with the organization of such entities under certain specified situations.[43] The Oklahoma Tax Commission Administrative Rules make it clear that unless exempted by statute transfers between related entities are subject to Oklahoma sales tax.[44] Unlike the Oklahoma documentary stamp tax statute, the Oklahoma Statutes do not expressly address the sales tax consequences, if any, of a subsequent transfer of the equity interests of a newly-created entity to which tangible personal property was contributed in connection with the organization of such entity. However, Oklahoma sales tax is only due on transfers of tangible personal property, and equity interests such as stock and membership interests are not tangible personal property but rather intangible personal property.[45] As a result, a literal reading of the governing statutes and guidance could support the position that no Oklahoma sales tax would be due on such a transaction. As is always the case with tax statutes, one would need to pay particular attention to ensuring that all aspects of the transaction squarely fit the statutes and rules to make the best case for the intended result.

Several potential “gotchas” can result in unwelcome sales tax surprises to an out-of-state buyer. Unlike many states, Oklahoma does not have an isolated or occasional sales tax exemption. This can become important in transactions where real property is being transferred as a part of a sale of a business or there is tangible personal property being sold along with the real property. In such instances, Oklahoma sales tax will generally be due on the transfer of any tangible fixed assets or other tangible personal property. Also, a buyer of the assets of an Oklahoma business including real property should be aware that the Oklahoma Tax Commission may deny the issuance of a sales tax permit to such buyer if the seller has delinquent sales tax liabilities, a circumstance which would obviously create significant operational issues to the buyer post-closing.[46]

4. Real property transaction costs — customary allocation between the parties

The typical transaction costs incurred in connection with a real property acquisition include the Oklahoma documentary stamp taxes, possibly Oklahoma sales tax, abstracting costs, title examination fees, title insurance premiums and associated escrow or closing fees of the title company, filing and recording fees including, if applicable, the Oklahoma real estate mortgage tax, surveyor’s fees, environmental consultant’s fees, and land use consultant’s fees.

This article has already noted that the Oklahoma documentary stamp tax is almost always paid by the seller and that the Oklahoma sales tax, if applicable, is the responsibility of the buyer but collected and remitted to the taxing authorities by the seller. The allocation of other transaction costs is typically subject to negotiation by the parties. While every transaction is obviously different depending on the facts and circumstances, in the author’s experience the buyer typically pays the recording fees.

The recording fees in Oklahoma are relatively nominal. County clerks charge $5 for each deed, mortgage, or other instrument to be recorded.[47] In addition, there is a flat charge of $8 for the first page of an instrument and $2 each additional page of an instrument.[48] If the instrument is non-conforming,[49] the charges per page are increased to $25 for the first page and $10 for each additional page of such non-conforming instrument.[50]

As noted above, Oklahoma levies a tax on real estate mortgages and deeds of trust.[51] The amount of the tax is based on the amount of the debt secured by the mortgage and the term of the debt.[52] The tax is ten cents for each $ and any part thereof secured where the mortgage is for five years or more.[53] The tax decreases by two cents for every year down to two cents for each $ and any part thereof secured where the mortgage is for less than two years.[54] Since July , the tax can be paid by the mortgagor, mortgagee, or any interested party but prior to that time it was unlawful for a mortgagee to charge or otherwise exact this tax from the mortgagor.[55] A mortgage cannot be recorded unless the tax is paid, and a mortgage that is subject to the tax cannot be released, discharged of record, or received in evidence in any action or proceeding unless the tax has been duly paid.[56] Finally, no judgment or final order in any action for the foreclosure or enforcement of the mortgage or the debt or obligation secured can be entered unless the tax is paid.[57] In situations where a buyer is financing the acquisition of multiple properties that are in various states or counties in Oklahoma, the buyer will want to consider specifying the indebtedness secured by each of the mortgages to be recorded in Oklahoma in order to avoid unnecessarily paying a very large mortgage tax.

The premiums for the owner’s policy of title insurance and any other required endorsements as well as associated title company costs are not mandated by statute as they are in some other states. Rather, these costs are frequently negotiated and it is important to obtain a quote from the title insurance company, or perhaps several title insurance companies, in advance of selecting the title company for the transaction. Many times parties can negotiate favorable reissue rates or simultaneously-issue rates for a leasehold policy of title insurance or a mortgagee’s policy of title insurance issued in connection with an owner’s policy of title insurance.

The premium for the owner’s policy of title insurance is frequently negotiated with the seller sometimes agreeing to cover that cost. Frequently, the buyer will be responsible for any specifically requested endorsements to the owner’s policy of title insurance as well as any expenses related to its financing. In Oklahoma, there will be abstracting costs associated with the preparation of the title commitment and the seller is generally responsible for these abstracting costs. Buyers should also be aware that in many rural counties in Oklahoma there can be delays in the preparation of a title commitment due to time necessary to complete the abstracting process, particularly in counties with only a single abstracting company. Costs associated with the survey, any environmental or land use reports are also negotiated but with the buyer frequently being responsible for such costs. The parties generally split the title company’s escrow or closing fees.

Most negotiated commercial real property purchase agreements will contain a specific section addressing the allocation of these transaction costs between the parties. This is recommended to avoid the uncertainty created by the “kicking the can down the road” approach of simply providing that these costs will be allocated in accordance with customary practices or something similar which creates the possibility of the parties disagreeing on the allocation in the future.

5. Forms of conveyance instruments; execution formalities; and lot splits

In Oklahoma, the three most commonly used forms of deeds are the general warranty deed, the special warranty deed, and the quitclaim deed. The statutory form of general warranty deed and quitclaim deed are set forth in Title 16, Sections 40 and 41 of the Oklahoma Statutes, respectively. The statutes do, however, provide that a deed “substantially” in the statutory form will suffice to effectuate the conveyance.

A general warranty deed in substantial compliance with the statute is deemed to convey the whole interest of the grantor in the property and by including the statutory language, “and warrant title to the same” includes implied warranties that: (1) the grantor has title and possession of the subject property; (2) the grantor has the right and authority to convey the subject property; (3) there are no encumbrances on the subject property other than what is disclosed in the deed; (4) the grantee will have quiet and peaceable possession of the subject property; and (5) the grantor will defend the title to the subject property.[58] As in other states, in Oklahoma, a general warranty deed will commonly have an exhibit that enumerates or discloses the exceptions to the title warranty. This exhibit will typically tie back to the exceptions in the title commitment. Some sellers, especially in transactions where the parties are not represented by legal counsel, try to simply refer to matters of record as the title exception language. A buyer should resist such a general reference to matters of record and limit the exceptions to those specified on the exhibit if possible.

The quitclaim deed conveys all right, title, and interest of the grantor in and to the property.[59] Quitclaim deeds are more typically used in connection with title curative conveyances. Oklahoma does not have a statutory form for a special warranty deed although such deeds are frequently used in commercial real property transactions where the buyer is obtaining title insurance. The special warranty deed will typically provide that the grantor only warrants and covenants to defend title against matters arising by, through, or under the grantor. This is most typically accomplished by the modification of the warranty of title clause in the statutory general warranty deed to read something like the following: “. . . and warrant title to the same to be free, clear, and discharged of and from all former grants, charges, taxes, judgments, liens and encumbrances of whatsoever nature created by, through or under grantor, but not otherwise.”[60] Notwithstanding the limited nature of the title warranty in a special warranty deed, a special warranty deed in Oklahoma customarily includes an exhibit listing all title exceptions even those exceptions that were not created by the grantor.

As discussed more thoroughly in Section 1 of this article, it is common in Oklahoma for the mineral estate to be severed, perhaps completely, from the surface estate. Further, it is common for surface owners in Oklahoma to have no knowledge whether they own any of the mineral estate. Thus, in real property transactions in Oklahoma concerning the surface estate, the general warranty deed or special warranty deed will typically contain language either carving out the mineral estate from the property being conveyed or clarifying that the conveyance is only of the surface estate or, alternatively, eliminating the mineral estate from the warranties in the deed. The exact language for the carve-out can come in various forms and will depend on the intent of the parties. Many times, however, deeds will contain language that reads something like “less and except all interests in oil, gas, casinghead gas, distillate, coal, metallic ores and other minerals therein, thereon, or thereunder, previously reserved or conveyed” immediately after the reference to the property description. In any event, the deed should be carefully drafted to ensure that the intent of the parties is properly reflected.

The execution formalities in Oklahoma for deeds and other instruments affecting real estate differ depending on the type of entity executing the deed or instrument. For a corporation, such a deed or instrument must be executed by the president, vice-president, chairman or vice-chairman of the board of directors, or by an attorney-in-fact.[61] Further, such a deed or instrument must be acknowledged in substantially the form set forth in Title 16, Section 95 of the Oklahoma Statutes or substantially in the form provided in the Uniform Law on Notarial Acts in Oklahoma which is codified in Title 49, Sections – of the Oklahoma Statutes.[62] Although it could be difficult for a corporation to avoid the enforcement of a real property purchase agreement on such a technical defect in execution, prudent practice would dictate that such real property purchase agreements executed by corporations should be executed and acknowledged in accordance with these statutes.

With regard to limited liability companies, the Oklahoma Title Examination Standards provide that a title examiner is entitled to presume that a manager of a limited liability company was authorized to act on behalf of the limited liability company.[63] As a result, it is recommended that all such instruments affecting real estate that are to be recorded should be executed by a manager of the limited liability company. The comments to this standard indicate that it is sufficient if signatory party is identified in the instrument as a “Manager and Member,” “Member Manager” or “Managing Member.” For out-of-state owners who operate in a member-managed limited liability company or a limited liability company which is accustomed to having officers sign documents on behalf of the limited liability company, this standard can sometime create issues with respect to documents to be filed of record in an Oklahoma real estate transaction.

The Oklahoma Constitution prohibits one spouse from selling the homestead without the consent of the other spouse.[64] The Oklahoma Statutes also specifically allow a husband or wife to convey or make any contract related to real estate belonging to him or her other than the homestead without being joined by the other spouse.[65] In order to avoid marketable title issues concerning whether the property is or is not homestead property, deeds and other instruments relating to real estate to be executed by an unmarried individual should clearly recite that such person is unmarried. If the person is married, in order to vest marketable title in the grantee the spouse should join in executing any instrument related to real estate. Frequently, as a matter of customary practice the non-owner spouse will join in the deed as a part of a special phrase after the habendum clause as opposed to being a grantor in such deed which will suffice for purposes of conveying marketable title.[66]

While the failure of the spouse to join in or otherwise execute the deed by the special phrase following the habendum clause will cause title to be unmarketable, if no legal action is commenced within ten years following such conveyance, marketability of title is no longer impaired.[67] Further, a title company may be willing to offer affirmative coverage to a buyer in this instance if the grantor furnishes an affidavit of non-homestead status and associated indemnity that satisfies the title company with regard to such matters.

Instruments affecting real estate may be executed by an attorney-in-fact pursuant to a power of attorney that is executed, acknowledged, and recorded in the same manner required for deeds.[68] Such a recorded power of attorney remains if effect until an instrument revoking such power of attorney is recorded in the same office where the power of attorney was recorded.[69]

Except as discussed above with regard to corporations, no acknowledgement is required in order for a deed or other instrument relating to real estate to be effective between the parties.[70] However, no such deed or instrument is valid against third parties unless acknowledged and recorded.[71] Further, Oklahoma has no statutory requirement for a subscribing witness for deeds, leases, or other instruments relating to real estate.[72]

As noted in Section 4 of this article, the recording fees will differ depending on whether the instrument to be recorded is conforming or non-conforming. In this regard, the Oklahoma Statutes contain some fairly detailed requirements[73] with regard to formatting including being in the English language and being no larger than 8 1/2 inches by 14 inches and a top margin of at least one inch and other margins of at least one-half inch. An instrument that is an original or certified copy of an original, legible without aid of magnification and xerographically reproducible by the county clerk’s equipment but that somehow fails to meet the other specified formatting requirements is deemed non-conforming, requiring the payment of the additional per page charges of $25 for the first page and $10 for each additional page.[74]

One final point related to name changes and mergers or consolidations involving entities owning real property in Oklahoma should be noted. Corporations undergoing a name change or surviving a merger or consolidation are required to file the certificate of name change or merger or consolidation in each county where such corporation has an interest in real property.[75] Further, the Oklahoma Title Examination Standards provide that a title examiner is entitled to rely on recitals in a recorded title document as to name changes of a corporation or succession by merger or consolidation in the absence of recorded evidence to the contrary such as a certificate of name change or merger containing conflicting information.[76]

Similarly, partnerships and limited partnerships surviving a merger are required to file the statement of merger in the county where such other entity that was a party to the merger has any real property in order to effectuate such property becoming property of the surviving partnership or limited partnership.[77] The Oklahoma Title Examination Standards also make it clear that the identification of succession through merger involving a surviving partnership or limited partnership must be evidenced of record by the filing of a statement of merger.[78]

Finally, with respect to limited liability companies, the Oklahoma Title Examination Standards contain similar provisions entitling the title examiner to rely or recitals in recorded title documents as to name changes and succession by merger or consolidation for limited liability companies in the absence of recorded evidence to the contrary.[79] However, unlike corporations, limited partnerships, and partnerships, there is no express statutory requirement to file a certificate of name change or certificate of merger or consolidation for surviving limited liability companies.

Like most other states, Oklahoma has various statutes and municipal ordinances regulating the platting and subdividing real property. This regulatory scheme can be confusing as the rules are different depending on the location of the property, so a buyer purchasing real property in Oklahoma should familiarize itself with these regulations to ensure that unexpected hurdles or delays to closing are avoided. In general, these issues tend to arise where an existing tract of real property is being divided into more than one tract as a result of the contemplated transaction and, particularly, when one of those tracts is five acres or less. In that regard, it is important to recognize that these regulations might be triggered even if the tract that is being conveyed is more than five acres if the remaining tract owned by the grantor is five acres or less.

For example, Title 11, Section of the Oklahoma Statutes provides that with respect to cities with a population of , or more a deed conveying five acres or less must be approved by the City Planning Commission and such approval must be evidenced on the deed, unless there is an existing deed already of record the evidences the previous approval by the City Planning Commission.[80] Further, any deed not in compliance with this statute is not entitled to be recorded nor does it import notice.[81] There are also statutes that allow the creation of a metropolitan area planning commission between a city and a county which provide for similar regulation on conveyances of real property within their jurisdiction.[82] The Tulsa Metropolitan Area Planning Commission is an example of such a commission. Section of Title 19 of the Oklahoma Statutes makes it unlawful for a grantor to convey any tract of land of five acres or less or to convey any tract which results in a remainder tract of five acres or less without obtaining the written approval of the metropolitan area planning commission by its endorsement on the deed. This statute further provides that a deed without such approval is not valid and, if recorded, does not import notice.[83]

Finally, to complicate matters many cities may have their own regulatory schemes that apply to the so-called lot splits, as may counties with regard to unincorporated areas within their boundaries. The point is that buyers should pay particular attention to these requirements to avoid any surprises in preparation for a closing.

6. Inspection or free-look periods; liquidated damages; and attorneys’ fees

Similar to other states, a buyer of Oklahoma real property frequently wants to negotiate into the real property purchase agreement a time period to evaluate the property before becoming contractually committed to close. Such provisions have become fairly common, but the exact language chosen by the parties to implement such a provision can vary widely. However, in general, these provisions grant the buyer some time period to engage in due diligence activities and, then, make a determination within that period whether to proceed with the transaction. If the buyer terminates within this time period, any earnest money deposited by the buyer is generally returned to the buyer and the parties go their separate ways.

The discussion below concerning Oklahoma case law illustrates the importance of carefully choosing the language to be included in the real property purchase agreement to implement such a concept. As an initial matter, the buyer should consider whether it wants the unfettered right to terminate in its sole discretion or for any or no reason during this time period or whether the buyer must have some sort of justification or reason for such a termination.

No reported Oklahoma cases address the ramifications of a buyer including in a real property purchase agreement the unfettered right to terminate the agreement in its sole discretion or for any or no reason during this time period. However, there are several cases imposing limitations on a buyer’s discretion to terminate a real estate purchase agreement or to otherwise not proceed to closing based on other language in the agreement.

More specifically, in Davis v. Sonat Exploration Co.,[84] the court addressed a clause in the agreement that provided that the buyer’s obligation to purchase the property was subject to the buyer’s satisfaction with the results of its full and complete due diligence. The court stated that in construing the term “satisfaction” as used in the agreement in question there were two possible constructions that fall into these categories: “(1) those that call for satisfaction as to ‘commercial value or quality, operative fitness, or mechanical utility,’ which are interpreted under a reasonableness standard, and (2) those that require the consideration of a ‘multiplicity of factors’ and involve ‘fancy, taste, or judgment,’ which should be analyzed under a good faith standard.”[85]

The Davis court concluded that the good faith standard applied in that particular instance, reasoning that there was a “multiplicity of factors” present in determining whether Sonat was satisfied with its due diligence, including the potential environmental condition of the properties, the cost of remedying existing or potential environment conditions and future potential liability.[86] The Davis court recognized that in Ledford v. Wheeler[87] the Oklahoma Court of Civil Appeals similarly applied the good faith or subjective standard to a clause that allowed the buyer to terminate the real property purchase agreement if the buyer’s examination of title proved unsatisfactory.[88] Further buttressing its decision, the Davis court quoted with approval the following language from the Ledford case: “the [b]uyer could only back out because of a good faith concern about the title. While satisfaction was to be judged by the [b]uyer, this satisfaction was one determined in good faith and not by whim.”[89]

However, very recently in Group One Realty, Inc. v. Dahr Properties-Memorial Springs, LLC,[90] the Oklahoma Court of Civil Appeals refused to apply the good faith or subjective standard, but rather ruled the objective reasonableness standard should be applied to a provision in a real estate purchase agreement where the buyer’s obligation to close was conditioned on the satisfactory resolution of all issues with respect to proposed pipelines on the property.[91] The court emphasized that there was no language in the agreement subjecting the buyer’s right to terminate to a good faith standard and stated that it was unwilling to impose that standard as a matter of law.[92] The buyer’s satisfaction contingency in Group One was limited to issues related to proposed pipelines on the property and did not cover the buyer’s overall satisfaction with its due diligence efforts or its feasibility studies related to the property. A court could be more likely to apply the subjective good faith standard in situations where the satisfaction contingency is broader in nature than that at issue in Group One.

In any event, under the rationale of the Davis, Ledford, and Group One cases an Oklahoma court would apply either the objective reasonableness test or the subjective good faith standard in analyzing whether a buyer properly exercised a termination right that was contingent on the buyer being “satisfied” in some respect with the property or its diligence efforts with regard to the property depending on the precise language used in the real estate purchase agreement. Consequently, buyers should be cautioned to carefully choose their words with regard to such inspection, due diligence, or feasibility periods and any termination rights.

If, on the other hand, a buyer desires to have a free-look period during which the buyer has the unfettered right to terminate the agreement in its sole discretion or for any or no reason, the buyer should recognize that doing so may raise questions as to the enforceability of such agreement on grounds that it is illusory.[93] Such a buyer may want to consider including in the agreement specific and separate independent consideration supporting the enforceability of an agreement containing such a provision. While there are no reported cases in Oklahoma addressing the enforceability of a real estate purchase agreement where, in exchange for independent consideration, the buyer is granted such broad termination rights, the Oklahoma courts have generally not questioned the sufficiency of the consideration “[w]henever it appears that the parties to a trade have knowingly and deliberately fixed upon any price, however great, or however small,” so long as no evidence of fraud other circumstances exists that would cause the amount of the consideration to “shock the conscience”.[94]

In the absence of a liquidated damages clause, Title 23, Section 28 of the Oklahoma Statutes statutorily fixes the seller’s damages for breach of a real estate purchase agreement as “the amount due the seller under the [agreement] less the value of the property.” However, in Oklahoma a real estate purchase agreement commonly includes a liquidated damage clause limiting the buyer’s liability for damages for a breach of the agreement to forfeiture of the earnest money deposit.

Oklahoma does have some fairly specific statutes addressing liquidated damages that should be considered in drafting a real estate purchase agreement. Generally speaking, when a contract contains a liquidated damages provision, that provision is governed by Title 15, Section (A) of the Oklahoma Statutes, which provides that a liquidated damages provision is valid if, under the facts and circumstances of the case, “it would be impracticable or extremely difficult to fix the actual damage.” However, in , the Oklahoma legislature enacted Section (B) to Title 15, establishing a per se rule for fixed damages provisions in real estate purchase agreements by providing that if the amount of fixed damages does not exceed 5% of the purchase price, the provision is automatically valid and outside of the authority of Title 23, Section 28 of the Oklahoma Statutes.[95] That statute goes on to provide that if the fixed damages are more than 5% of the purchase price, the provision “shall be held invalid and a penalty unless the party seeking to uphold the provision establishes that such amount is reasonable.”[96] If the liquidated damage clause providing for fixed damages of more than 5% of the purchase price is ultimately determined to be invalid, the damages would likely be determined under the general rule provided for in Title 23, Section 28 of the Oklahoma Statutes.

One final point concerning liquidated damages should be mentioned. Oklahoma case law indicates that a liquidated damage remedy may not need to be exclusive and the parties may contractually provide for both liquidated damages and other remedies. More specifically, in Oltman Homes, Inc. v Mirkes,[97] the court noted than an alternative damages provision in a contract for the sale of a custom residential property gave the seller the right to choose between liquidated damages and any other remedy available at law or in equity and concluded this provision gave the seller the right to seek damages under two mutually exclusive measures.[98] Thus, if the buyer intends the fixed damages to be sole remedy available to the seller for a breach by the buyer, the buyer should specifically state that in the liquidated damages provision.

Lastly, Oklahoma follows the “American Rule” with regard to attorney’s fees, which provides that attorney’s fees are generally awarded only where they are “authorized by agreement of the parties, by statute, or where the fee is an item of damage caused by the wrong itself rather than an item of expense incurred in attempting to secure redress for the wrong.”[99] Exceptions to this rule are few, and courts typically construe them narrowly.[] Further, litigants in Oklahoma have largely been unsuccessful when they attempt to incorporate other attorney’s fees statutes to recover attorney’s fees related to a real estate purchase agreement that did not include an attorney’s fees provision.[]

» Download PDF for printable version and footnote references

Notes

1. See 52 Okla. Stat. § (A). A website that is useful to locate Oklahoma constitutional and statutory provisions and Oklahoma cases is www.oldyorkcellars.com This website is maintained by the Oklahoma State Courts Network, which is under the control of the Oklahoma Judicial Branch.
2. Gerald Grimes, Title Insurance for Surface Damages (Nov. 27, ) (Oklahoma State Insurance Commissioner Bulletin).
3. 52 Okla. Stat. § et seq.
4. See YDF, Inc. v. Schlumar, Inc., P.3d (Okla. ).
5. Houck v. Hold Oil Co., P.2d , (Okla. ).
6. Davis Oil Co. v. Cloud, P.2d , (Okla. ).
7. Chesapeake Operating, Inc. v. Loomis, P.3d , (Okla. Civ. App. ).
8. YDF, Inc. v. Schlumar, Inc., supra, P.3d at (Okla. ) (Taylor, J., dissenting).
9. Oklahoma County Zoning Regulations, Article II, § www.oldyorkcellars.com
10. Tulsa County Zoning Code, § (a)
11. See Oklahoma City Municipal Code, Chapter 37, Article III, § ; Tulsa Code of Ordinances, Article A, Chapter 6, § The foot distance requirement is calculated from the well bore or other equipment to the closest exterior point of the dwelling or other subject building.
12. OK AG 12, ¶¶ and 15 (Opinion , Nov. 30, ).
13. Okla. Const. art. X, §
14. 68 Okla. Stat. §
15. Oklahoma Industries Authority v. Barnes, P.2d , (Okla. ).
16. OK , ¶ 8, P.2d , (Okla. ).
17. It should be noted, however, that in State ex rel. Cartwright v. Dunbar, P.2d , (Okla. ), the Oklahoma Supreme Court ruled that a private entity holding a leasehold interest from a public trust is subject to ad valorem taxation if the lease is in reality an executory contract for the sale of the property to the private entity lessee stating that “[the Oklahoma Supreme Court] find[s] the fact that legal title to the properties in the case at bar is in [the public trust] is not of itself determinative of the tax exemption under the ‘property of’ portion of [Article X, § 6 of the Oklahoma Constitution]. The determinative factor is ‘ownership.’ Therefore, [the Oklahoma Supreme Court] must determine the quantum of interest which [the lessees] have in the properties.” However, this ruling is not separately taxing the leasehold estate but rather concluding that under the lease documentation in question the lessee is in fact the owner of the property for Oklahoma ad valorem tax purposes.
18. See 68 Okla. Stat. § (B) and 68 OKLA. STAT. § (18).
19. 68 Okla. Stat. § (A).
20. 68 Okla. Stat. § (D). The Oklahoma County Assessor has a very good website, www.oldyorkcellars.com, that includes forms of the Notice of Change in Value of Real Property OTC Form as well as the County Assessor Informal Protest OTC Form The website also allows one to search for properties in Oklahoma County by address and record owner and provides a significant amount of insurance for each such property. Some of the other more populated counties in Oklahoma have similar websites including Tulsa County, www.oldyorkcellars.com, and Cleveland County, www.oldyorkcellars.com
21. See 68 Okla. Stat. § and 68 Okla. Stat. §
22. 68 Okla. Stat. §
23. The cap is 3% for property qualified for the homestead exemption or classified as agricultural land.
24. See 68 Okla. Stat. § and 68 Okla Stat. § (A)(4). While the constitutionality of this statutory carve-out from the lifting of the 5% cap has been challenged in two cases, the courts in each of these cases upheld the constitutionality of the statutes with respect to the particular facts at issue in the cases. In In re Assessments for Year of Certain Real Property Owned by Askins Properties, L.L.C., P.3d (Okla. ), the Oklahoma Supreme Court upheld these statutes against a constitutional attack, emphasizing that while legal title to the property may have been transferred, the equitable/beneficial title or ownership remained in the same two individuals before and after the transfer in question. Similarly, in In re Assessments for Year of Certain Properties Owned by Affordable Residential Communities 7, L.L.C. and Affordable Residential Communities 8, L.L.C., P.3d (Okla. Civ. App. ), the Court of Civil Appeals rejected a constitutional challenge, reasoning that the same ultimate parent entity retained ownership and control over the properties before and after transfers between subsidiary entities within the same group controlled by the parent entity. Nevertheless, it should be noted that there is language in both of these cases that could be viewed as indicating that in other factual contexts these statutes may be more suspect to a constitutional challenge.
25. See generally 68 Okla. Stat. § (F).
26. See Okla. Const. art. X, § 6B and 68 Okla. Stat. §
27. 58 P.3d , (Okla. ).
28. 68 Okla. Stat. § (A).
29. Id.
30. 68 Okla. Stat. § (A).
31. 68 Okla. Stat. § (B) and Okla. Admin. Code § (2).
32. 68 Okla. Stat. §
33. Okla. Admin. Code § (c) and § (5).
34. 68 Okla. Stat. §
35. See 68 Okla. Stat. § and Okla. Admin. Code §
36. 68 Okla. Stat. § (4).
37. Id.
38. 68 Okla. Stat. § ; 68 Okla. Stat. §
39. 68 Okla. Stat. §
40. 68 Okla. Stat. § (A).
41. 68 Okla. Stat. §
42. 68 Okla. Stat. §
43. 68 Okla. Stat. §
44. Okla. Admin. Code §
45. Okla. Admin. Code §
46. Okla. Admin. Code §
47. 28 Okla. Stat. § 32(C).
48. 28 Okla. Stat. § 32 (A)(1) and (2).
49. Section 5 of this Article discusses the distinction between conforming and non-conforming instruments.
50. 28 Okla. Stat. § 32(A)(13) and (14). Section 5 of this Article, addressing execution formalities, contains a discussion of what causes an instrument to be non-conforming for this purpose.
51. In Oklahoma, every deed of trust on real property intended as security is subject to all statutory provisions and laws relating to mortgages. See 46 Okla. Stat. § and 68 Okla. Stat. §
52. 68 Okla. Stat. § (A).
53. 68 Okla. Stat. § (A)(1).
54. 68 Okla. Stat. § (A)(5).
55. 68 Okla. Stat. § (C).
56. 68 Okla. Stat. §
57. Id.
58. 16 Okla. Stat. §
59. 16 Okla. Stat. §
60. See generally Whayne v. McBirney, P.2d (Okla. ).
61. 16 Okla. Stat. §
62. 16 Okla. Stat. §
63. 16 Okla. Stat. §
64. Okla. Const. art. XII, § 2.
65. 16 Okla. Stat. §
66. See generally 16 Okla. Stat. §
67. 16 Okla. Stat. §
68. 16 Okla. Stat. §§ 3 and
69. 16 Okla. Stat. §
70. 16 Okla. Stat. §
71. Id. There is an exception, however, for leases not longer than one year accompanied by possession.
72. 16 Okla. Stat. § 2.
73. 19 Okla. Stat. §
74. 19 Okla. Stat. § (C) and 28 Okla. Stat. § 32(A)(13) and (14).
75. 18 Okla. Stat. §
76. 16 Okla. Stat. §
77. 54 Okla. Stat. §
78. 16 Okla. Stat. §
79. 16 Okla. Stat. §§ and
80. See also 11 Okla. Stat. §
81. 11 Okla. Stat. § (B).
82. See 19 Okla. Stat. §
83. Id.
84. F. Supp. , (N.D. Okla. ), aff’d, WL (10th Cir. Dec. 9, ).
85. Id.
86. Id.
87. Ledford v. Wheeler, P.2d (Okla. Civ. App. ).
88. Davis, supra, F. Supp. at
89. Id.
90. Group One Realty, No. , (Okla. Civ. App., Div. 2, ).
91. www.oldyorkcellars.com9.
92. Id.
93. See generally Group One Realty, No. , (Okla. Civ. App., Div. 2, ) at 8.
94. Boles v. Nash, P. (Okla. ).
95. See generally P’ship v. Taveau, OK CIV APP 77, P.2d , (Okla. Civ. App. ).
96. 15 Okla. Stat. § (B).
97. Oltman Homes, Inc., v. Mirkes, P.3d , (Okla. Civ. App. ).
98. Id.
99. Eagle Bluff, L.L.C. v. Taylor, OK 47, ¶ 15, P.3d , (Okla. ).
100. Id. ¶
101. See generally Oltman Homes, supra, P.3d at (Okla. Civ. App. ) (overruling trial court’s award of attorney’s fees, reasoning that the case at issue was one related to a breach of a real estate purchase agreement and not a breach of contract for the sale of labor or services as concluded by the trial court).

The most common contract we see is the Oklahoma Real Estate Commission&#;s Residential Sales Contract. This is a standard real estate contract used to purchase residential homes. It can also be used to purchase acreages, but for land and larger properties, we typically use either a land contract or a farm/ranch contract. You can download a copy by clicking on the link.

My comments are in italics.

Opening

 The Parties’ signatures at the end of the Contract, which includes any attachments or documents incorporated by reference, with delivery to their respective Brokers, if applicable, will create a valid and binding Contract, which sets forth their complete understanding of the terms of the Contract. This agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors and permitted assigns. The Contract shall be executed by original signatures of the parties or by signatures as reflected on separate identical Contract counterparts (carbon, photo or fax copies). The parties agree that as to all aspects of this transaction involving documents an electronic signature shall have the same force and effect as an original signature pursuant to the provisions of the Uniform Electronic Transactions Act, 12A, Oklahoma Statutes, Section et seq. All prior verbal or written negotiations, representations and agreements are superceded by the Contract, which may only be modified or assigned by a further written agreement of Buyer and Seller. Seller agrees to sell and convey by General Warranty Deed, and Buyer agrees to accept such deed and buy the Property described herein, on the following terms and conditions:

This section basically says that any other prior agreements, verbal or written, are superseded by this written contract.  So whatever was said during negotiations, if it is not in this contract or an addendum, is not valid.  It also says the seller is conveying a General Warranty Deed.

Section 1

 The Property shall consist of the following described real estate located in _____________________________ County, Oklahoma.

1. LEGAL DESCRIPTION.  &#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;

Together with all fixtures and improvements, and all appurtenances, subject to existing zoning ordinances, plat or deed restrictions, utility easements serving the Property, including all mineral rights owned by Seller, which may be subject to lease, unless expressly reserved by Seller in the Contract and excluding mineral rights previously reserved or conveyed of record (collectively referred to as “the Property”.)

Section one contains the legal description of the property.  An address is NOT a legal description.  The legal description is what is on the tax records.  This section also says the property includes fixtures & improvements and is subject to zoning and other restrictions unless otherwise spelled out and reserved in the contract.  This contract excludes mineral rights, although those can be added (but seldom are on a residential property purchase).

Section 2

 Purchase Price, Earnest Money and source of funds. This is a CASH TRANSACTION unless a Financing Supplement is attached. The Purchase Price is $__________________________ payable by Buyer as follows: Buyer has paid $__________________________ as Earnest Money on execution of the Contract, and Buyer shall pay the balance of the purchase price and Buyer’s Closing costs at Closing. Upon execution of the Contract, the Earnest Money shall be deposited in the trust account of ______________________________________or if left blank, the Listing Broker’s trust account, as part payment of the purchase price and/or closing costs. If interest accrues on Earnest Money Deposit in Listing Broker’s trust account, said interest shall be paid to “Oklahoma Housing Foundation”.

This basically spells out the purchase price and the earnest money that is offered by the buyer. The earnest money is deposited into a trust account that is protected by law, and usually is a trust account controlled by the listing or selling broker.  This money is brought to the closing as part of your down payment.

Section 3

 Closing , FUNDING AND Possession. The Closing process includes execution of documents, delivery of deed and receipt of funds by Seller and shall be completed on or before __________________________________________, (“Closing Date”) or not later than __________________________________ days (five [5] days if left blank) thereafter caused by a delay of the Closing process, or such later date as may be necessary in the Title Evidence Paragraph of the Contract. Possession shall be transferred upon conclusion of Closing process unless otherwise provided below: _______________________________. In addition to costs and expenses otherwise required to be paid in accordance with terms of the Contract, Buyer shall pay Buyer’s Closing fee, Buyer’s recording fees, and all other expenses required from Buyer. Seller shall pay documentary stamps required, Seller’s Closing fee, Seller’s recording fees, if any, and all other expenses required from Seller. Funds required from Buyer and Seller at Closing shall be either cash, cashier’s check or wire transfer.

Section 3 basically spells out the closing and possession date. This is date is typically days from the contract signing date, although it can happen sooner and sometimes takes longer depending on the circumstances of the real estate transaction.

Section 4

 4. ACCESSORIES, EQUIPMENT AND SYSTEMS. The following items, if existing on the Property, unless otherwise excluded, shall remain with the Property at no additional cost to Buyer:

• • Attic and ceiling fan(s)
• • Bathroom mirror(s)
• • Other mirrors, if attached
• • Central vacuum & attachments
• • Floor coverings, if attached
• • Key(s) to the property
• • Built-in and under cabinet/counter appliance(s)
• • Free standing slide-in/drop-in kitchen stove
• • Built-in sound system(s)/speaker(s)
• • Lighting & light fixtures
• • Fire, smoke and security system(s), if owned
• • Shelving, if attached
• • Fireplace inserts, logs, grates, doors and screens
• • Free standing heating unit(s)
• • Humidifier(s), if attached
• • Water conditioning systems, if owned
• • Window treatments & coverings, interior & exterior
• • Storm windows, screens & storm doors
• • Garage door opener(s) & remote transmitting unit(s)
• • Fences (includes sub-surface electric & components)
• • Mailboxes/Flag poles
• • Outside cooking unit(s), if attached
• • Propane tank(s) if owned
• • TV antennas/satellite dish system(s) and control(s), if owned
• • Sprinkler systems & control(s)
• • Swimming Pool/Spa equipment/ accessories
• • Attached recreational equipment
• • Exterior landscaping and lighting
• • Entry gate control(s)
• • Water meter, sewer/trash membership, if owned
• • All remote controls, if applicable
• • Transferable Service Agreements and Product Warranties

A. Additional Inclusions. The following items shall also remain with the Property at no additional cost to Buyer: _______________________________

B. Exclusions. The following items shall not remain with the Property: _____________________________________.

Here the items that typically remain with the home are spelled out in writing so that everyone is clear what stays and what goes with the home.  If the seller wants to reserved an existing item such as a special mirror, then it is spelled out in the exclusions.  If the buyer and seller agree that an item will remain with the property, such as an outdoor playground, then that item is also designated in this part of the contract.

Section 5

Time periods specified in Contract . Time periods for Investigations, Inspections and Reviews and Financing Supplement shall commence on __________________________________________ ( Time Reference Date), regardless of the date the Contract is signed by Buyer and Seller. The day after the Time Reference Date shall be counted as day one (1). If left blank, the Time Reference Date shall be the third day after the last date of signatures of the parties.

This is one of the most important dates in the contract, because this defines the Time Reference Date.  Many people overlook this date in the contract, but this is a key date that many other dates in the contract reference. The contract can be signed a month in advanced, but many of the activities such as inspections reference the time reference date instead.  We typically like to start this time reference date a week or so after the contract is signed.  This gives the buyer time to line up inspections, get their financial paperwork in place, etc.  In many cases this time reference date is more important than the contract signing date!

 Section 6

 RESIDENTIAL PROPERTY CONDITION DISCLOSURE. No representations by Seller regarding the condition of Property or environmental hazards are expressed or implied, other than as specified in the Oklahoma Residential Property Condition Disclosure Statement (“Disclosure Statement”) or the Oklahoma Property Condition Disclaimer Statement (“Disclaimer Statement”), if applicable. A real estate licensee has no duty to Seller or Buyer to conduct an independent inspection of the Property and has no duty to independently verify accuracy or completeness of any statement made by Seller in the Disclosure Statement and any amendment or the Disclaimer Statement.

This states that the seller makes no representations about the property other than the Oklahoma Residential Property Condition Statement, which is normally included in the contract.  The seller is required by law to list what they know about the property on this disclosure statement.  This part of the contract also clarifies that is not the Realtor&#;s responsibility to conduct inspections or make representations about the property.

Section 7

 INVESTIGATIONS, INSPECTIONS and REVIEWS.

A. Buyer shall have ____________ days (10 days if left blank) after the Time Reference Date to complete any investigations, inspections, and reviews. Seller shall have water, gas and electricity turned on and serving the Property for Buyer’s inspections, and through the date of possession or Closing, whichever occurs first. If required by ordinance, Seller, or Seller’s Broker, if applicable, shall deliver to Buyer, in care of Buyer’s Broker, if applicable, within five (5) days after the Time Reference Date any written notices affecting the Property.

B. Buyer, together with persons deemed qualified by Buyer and at Buyer’s expense, shall have the right to enter upon the Property to conduct any and all investigations, inspections, and reviews of the Property. Buyer’s right to enter upon the Property shall extend to Oklahoma licensed Home Inspectors and licensed architects for purposes of performing a home inspection. Buyer’s right to enter upon the Property shall also extend to registered professional engineers, professional craftsman and/or other individuals retained by Buyer to perform a limited or specialized investigation, inspection or review of the Property pursuant to a license or registration from the appropriate State licensing board, commission or department. Finally, Buyer’s right to enter upon the Property shall extend to any other person representing Buyer to conduct an investigation, inspection and/or review which is lawful but otherwise unregulated or unlicensed under Oklahoma Law. Buyer’s investigations, inspections, and reviews may include, but not be limited to, the following:

1. Disclosure Statement or Disclaimer Statement unless exempt
2. Flood, Storm Run off Water, Storm Sewer Backup or Water History
3. Psychologically Impacted Property and Megan’s Law
4. Hazard Insurance (Property insurability)
5. Environmental Risks, including, but not limited to soil, air, water, hydrocarbon, chemical, carbon, asbestos, mold, radon gas, lead-based paint
6. Roof, structural members, roof decking, coverings and related components
7. Home Inspection
8. Structural Inspection
9. Fixtures, Equipment and Systems Inspection. All fixtures, equipment and systems relating to plumbing (including sewer/septic system and water supply), heating, cooling, electrical, built-in appliances, swimming pool, spa, sprinkler systems, and security systems
10.  Termites and other Wood Destroying Insects Inspection
11. Use of Property.  Property use restrictions, building restrictions, easements, restrictive covenants, zoning ordinances and regulations, mandatory Homeowner Associations and dues
12. Square Footage.  Buyer shall not rely on any quoted square footage and shall have the right to measure the Property.
13.  ___________________________________

C. Treatments , Repairs and Replacements (trr).

1)  TERMITE Treatments AND OTHER Wood Destro ying INSECTS. Seller’s obligation to pay treatment and repair cost in relation to termites and other wood destroying insects shall be limited to the residential structure, garage(s) and other structures as designated in Paragraph 13 of the Contract and as provided in subparagraph C2b below.

2)  TREATMENTS, Repairs , Replacements and Reviews. Buyer or Buyer’s Broker, if applicable, within 24 hours after expiration of the time period referenced in Paragraph 7A of the Contract, shall deliver to Seller, in care of the Seller’s Broker, if applicable, a copy of all written reports obtained by Buyer, if any, pertaining to the Property and Buyer shall select one of the following:

a. If, in the sole opinion of the Buyer, results of Investigations, Inspections or Reviews are unsatisfactory, the Buyer may cancel the Contract by delivering written notice of cancellation to Seller, in care of Seller’s Broker, if applicable, and receive refund of Earnest Money.

OR

b. Buyer, upon completion of all Investigations, Inspections and Reviews, waives Buyer’s right to cancel as provided in 7C2a above, by delivering to Seller, in care of Seller’s Broker, if applicable, a written list on a Notice of Treatments, Repairs, and Replacements form (TRR form) of those items to be treated, repaired or replaced (including repairs caused by termites and other wood destroying insects) that are not in normal working order (defined as the system or component functions without defect for the primary purpose and manner for which it was installed. Defect means a condition, malfunction or problem, which is not decorative, that will have a materially adverse effect on the value of a system or component).

i. Seller shall have __________ days (5 days if blank) after receipt of the completed TRR form from Seller’s Broker, if applicable, to obtain costs estimates. Seller agrees to pay up to $________________ (“Repair Cap”) of costs of TRR’s. If Seller, or Seller’s Broker, if applicable, obtains cost estimates which exceed Repair Cap, Seller, or Seller’s Broker, if applicable, shall notify Buyer or Buyer’s Broker, if applicable, in writing, within two days after receipt of cost estimates. If the amount of the TRR’s exceed the amount of the Repair Cap, Buyer and Seller shall have __________ days (3 days if blank) thereafter to negotiate the payment of costs in excess of Repair Cap. If a written agreement is reached, Seller shall complete all agreed TRR’s prior to the Closing Date. If an agreement is not reached within the time specified in this provision, the Contract shall become null and void and Earnest Money returned to Buyer.

ii. If Seller fails to obtain cost estimates within the stated time, Buyer shall then have ___________ days (5 days if blank) to:

a) Enter upon the Property to obtain costs estimates and require Seller to be responsible for all TRR’s as noted on Buyer’s TRR form, up to the Repair Cap; and,

b) If the amount of the TRR’s exceed the amount of the Repair Cap, Buyer and Seller shall have __________ days (3 days if blank) thereafter to negotiate the payment of costs in excess of Repair Cap. If a written agreement is reached, Seller shall complete all agreed TRR’s prior to the Closing Date. If an agreement is not reached within the time specified in this provision, the Contract shall become null and void and Earnest Money returned to Buyer.

D . Expiration of Buyer’s Right to Cancel Contract .

1) Failure of Buyer to complete one of the following shall constitute acceptance of the Property regardless of its condition:

a. Perform any Investigations, Inspections or Reviews;

b. Deliver a written list on a TRR form of items to be treated, repaired and replaced; or

c. Cancel the Contract within the time periods in Investigations, Inspections or Reviews Paragraph.

2) After expiration of the time periods in Investigations, Inspections and Reviews Paragraph, Buyer’s inability to obtain a loan based on unavailability of hazard insurance coverage shall not relieve the Buyer of the obligation to close transaction.

3) After expiration of the time periods in Investigations, Inspections and Reviews Paragraph, any square footage calculation of the dwelling, including but not limited to appraisal or survey, indicating more or less than quoted, shall not relieve the Buyer of the obligation to close this transaction.

E. Inspection of Treatments , Repairs and Replacements and final walk -through .

1) Buyer, or other persons Buyer deems qualified, may perform re-inspections of Property pertaining to Treatments, Repairs and Replacements.

2) Buyer may perform a final walk-through inspection, which Seller may attend. Seller shall deliver Property in the same condition as it was on the date upon which Contract was signed by Buyer (ordinary wear and tear excepted) subject to Treatments, Repairs and Replacements.

3) All inspections and re-inspections shall be paid by Buyer, unless prohibited by mortgage lender.

Section 7 spells out the buyers rights to inspection and review of the property.  It tells how many days the buyer has to conduct their inspections, based off the time reference date.  It also spells out that the seller will allow the buyer and buyer&#;s representatives onto the property to conduct inspections, and the seller will make sure that all utilities are in working order so the buyer can conduct said inspections. It also spells out how long the seller has to correct the deficiencies found.  This is also where the repair cap is spelled out.  The repair cap is a pre-agreed amount of repairs the seller agrees to make for the buyer.  If the estimated repairs are above the agreed upon repair cap, then buyer and seller can renegotiate the contract or the buyer may withdraw from the contract and receive their earnest money back.

Section 8

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Click to see full answer.

Thereof, can I get my earnest money back?

An earnest money deposit says you're committed as a buyer. If you back out of the deal for reasons that have nothing to do with the home inspection or the appraisal, the seller can keep your money. On the other hand, if everything is moving along smoothly and the buyer decides to back out, you can get the deposit back.

One may also ask, who gets earnest money when buyer backs out? If the buyer backs out just due to a change of heart, the earnest money deposit will be transferred to the seller. You also need to watch the expiration date on contingencies, as it can impact the return of funds. Make sure to work with a reputable, experienced real estate agent when crafting your offer.

Simply so, is earnest money required in Oklahoma?

First, in Oklahoma it is required to have some form of consideration, in this case money, accompanying a contract in order for the contract to be legally binding. For a cash purchase or where there is a significant down payment the earnest money might be considerably higher.

Can seller relist property before returning earnest money?

A: The sellers can re-list a home but they can only accept an offer contingent on the successful cancellation of your offer. If you have been waiting a month to have your earnest money returned and the sellers refuse to sign the cancellation, you need to take action.

Before your buyers write that earnest money check, find out the purpose of an Earnest Money Deposit (EMD), how to avoid costly mistakes on the home purchase, and ways to lose earnest money.

They’ve found the home of their dreams and you’re working with your buyers to put together a winning offer. Part of that involves writing a fairly hefty check for the Earnest Money Deposit or EMD. You may take the EMD for granted as just part of the process -- until a deal falls through, you're losing earnest money, and those thousands of dollars are in jeopardy. The unexpected can happen prior to closing so it’s vital to explain to your buyers what’s at stake, ensuring that they are not blindsided by the loss of an Earnest Money Deposit.

How can you lose your earnest money deposit? Whether it involves a change of heart or a change in circumstances, here are ten scenarios where you can lose earnest money deposits-- and ways to protect your clients.

1. Failing to Meet Deadlines

When your buyers sign a purchase contract, they also agree to a timeline for home inspections, contingencies, and closing. If these major milestones along the road to the closing table don’t happen, the transaction could be put into jeopardy -- and that would be the buyer’s fault. If they are unable to fulfill the terms of the contract, the sellers would be justified in working to find another buyer -- and keeping the EMD. Make sure you are keeping your buyers moving forward with effective transaction coordination so that they are able to meet their contractual obligations on time.

2. Getting Caught Up In a Bidding War

We’ve all experienced low-inventory markets with multiple offers and bidding wars on every new home that comes on the MLS. In that kind of heated atmosphere, buyers can get scared and desperate -- causing them to jump the gun and offer on anything that becomes available. In addition, they may include higher than normal EMD’s to sweeten their offer. If they then realize the house is not for them, they could find themselves losing thousands when they back out of the contract. Make sure you help clients stay steady in the midst of a high-pressure market so that they can avoid this type of mistake.

3. Agreeing to a Non-Refundable Earnest Money Deposit

In some purchase scenarios, especially those involving bank-owned properties or investment properties, a non-refundable EMD may be required in order to show that the buyers are serious about seeing the transaction through. If your clients are confident that their financing and other contract requirements are on track, this may be worth it to them. However, make sure that they have a clear understanding of this part of the contract before they sign that earnest money check and sign away their rights to a earnest money deposit refund.

4. Waiving Contingencies Prematurely

When you are putting together an offer in a multiple offer situation, you may be nervous about asking for too much from the sellers. In that case, you may add fewer contingencies to the sales contract. Alternatively, once you’re under contract, you may mistakenly assume that some of its requirements have been fulfilled and release those contingencies prematurely. In either case, a lack of adequate contingency protection can lead to a cancelled contract or a cancelled earnest money check-- and a lost EMD.

5. Failing to Do Due Diligence

If your client is an investor or just a bargain-hunter, he or she may find a great deal and be eager to act on it, going under contract without a home inspection or other due diligence. In fact, part of the value-add many investors offer is an inspection-free process and fast closing. If the client then finds out that the home has some costly problems, he or she may need to sacrifice that EMD in order to get out of the contract.

6. Failing to Understand “As-Is” Buying

Many ask "when does a buys lost earnest money?" Well, some buyers are eager to take advantage of the money-saving opportunities offered by an As-Is property, assuming that they are handy enough to tackle a fixer-upper. However, major structural damage, termite damage, or other systems failure could result in more than they bargained for. In this case, it is important to have a home inspection contingency with the stipulation that no repairs will be requested. Otherwise, your buyers could find themselves losing their earnest money deposit to back out of the contract.

7. Voiding a Contract Without a Refund

In the case of a mutual decision to void a sales contract, it is important that the full earnest money refund is stipulated clearly in order to ensure that the seller isn’t planning to keep some or all of it. Once the contract is void, the buyer has given up any possible leverage they would have in order to compel the seller to release their deposit.

8. Deciding the Home Isn’t “The One”

Do you get earnest money back? Do you lose earnest money if you back out? For many people, buying a home is a very personal and emotional decision. For this reason, some buyers may decide on second or third viewing that the home just isn’t the right one for them. Since there is no contingency for a change of heart, it is important that buyers know that canceling the contract without cause may result in the loss of the EMD.

9. Developing FOMO Over Another Home

Just like falling in love, some buyers may enjoy the pursuit more than the capture -- falling in love with one home until they go under contract, then worrying that the right one is still out there somewhere. Here too, this emotion-based reason for canceling a contract will generally be punished with the loss of the EMD -- in part because of the loss in value anticipated by the sellers when they have to put their home back on the market.

Bailing on a Transaction for Personal Reasons

Finally, a big reason that contracts fall through -- other than home condition or financing issues -- stems from personal issues on the buyer side. An illness, a broken engagement, an unforeseen divorce, a job loss or change -- any of these can result in a fundamental shift in planning for the buyer and a genuine inability to see the contract through to closing. In these cases, the sellers are justified in keeping the EMD. In cases of hardship, you may make an appeal on the buyer’s behalf, however the sellers are under no obligation to return the deposit.

‍

About the Author

Evan is part of the Business Development team at Endpoint. He is focused on growing the Southern California market and brings with him extensive experience in growing technology solutions.

Typical Oklahoma Transaction Process

Once the Buyer has decided on the property to purchase, the Selling Broker types a "Contract for Sale" to present a written offer to the Seller. Earnest money refund oklahoma Buyer provides an earnest money check to accompany the offer to show Buyer's "Good faith" in finalizing the offer. The offered price, closing date, contingencies (such as financing) and any personal property will be included in the "Contract for Sale". The "Contract for Sale" is just an offer at this point.

The offer will be submitted to the Seller, who may counter, reject or accept the offer; only when the Seller agrees and signs the offered "Contract for Sale" and it is returned to the Buyer, will it become a binding contract. If the offer is countered by the Seller, the Buyer will have the opportunity to accept, reject or stock investment singapore guide the Seller's counter offer. The process continues until accepted or rejected by the Seller and the Buyer. Only when the Seller accepts the final offer will the Buyer's earnest money be deposited into a trust earnest money refund oklahoma of the Listing Broker.

Once the "Contract for Sale" has been fully executed and earnest money deposited, instructions will be given to the closing agent who will proceed with the activities necessary for the closing. Buyers will need to immediately apply for a loan, earnest money refund oklahoma, if desired, and arrange for their funds to be available. The Seller, at Seller's expense will bring the abstract to date (history of the legal documents on the property that are recorded at the court house then adds any documents since the last title transfer), earnest money refund oklahoma. The Buyer's attorney will then prepare a title opinion of the abstract, earnest money refund oklahoma. Any requirements necessary to clear the title must be remedied by the Seller.

Once clear title earnest money refund oklahoma been determined, appraisals, surveys, inspections, etc. are coordinated through the closing agent on behalf of the Buyer who is responsible for the costs of the services performed in the event the closing does not happen, unless specified differently in the "Contract for Sale". The "Closing Date" can then be set, which may be earlier or later than the date in the contract, if both Buyer and Seller agree, earnest money refund oklahoma. Generally four to six weeks are required before a "Closing Date" can be set, sooner for a cash transaction.

At the "Closing", the Buyer and Seller will meet to sign the final papers and transfer title via the deed. The Buyer and Seller will be shown a "Settlement Statement" which will have all of the expenses allocated to either the Buyer or the Seller as referenced in the "Contract for Sale" or mutually agreed. The deed will be signed by the Seller, along with how to claim bitcoin gold on bittrex required releases and the Buyer will sign any loan documents earnest money refund oklahoma any required releases. Funds will be exchanged and the sale will be "Closed". The deed is filed at the County Court House proving that you own the property, and the copy of the deed is placed in the abstract, for future reference.

Things to Remember

The offer must be in writing in the form of a "Contract for Sale" accompanied by earnest money.

The Seller doesn't have to accept the Buyer's offer or any offer.

The Seller will consider all offers, no matter which is first. The Listing Broker must tell the Seller of potential other offers, and then the Seller must decide whether to wait or not.

The Seller earnest money refund oklahoma not required to select the highest offer, and will consider all terms and contingencies, earnest money refund oklahoma.

If the Buyer fails to close (once the contract is executed) at no fault of Seller, Buyer will lose the earnest money if there is no contingency to the contrary and after all the proper releases are signed. Furthermore, Buyer will be responsible for any expenses incurred on Buyer's behalf, earnest money refund oklahoma, in addition to the earnest money. If the earnest money can legally be returned to the Buyer, the expenses could then be taken from that returned earnest money amount. Seller must pay for the cost of updating the abstract, but it might be used on a future transaction, depending on the timing.

If the Seller fails to close (once the contract is executed) at no fault of Buyer, the earnest money will be returned to the Buyer upon mutual execution of proper releases. Buyer may have sufficient grounds to force the Seller to sell by a legal practice earnest money refund oklahoma "Specific Performance", but this is rarely used. Seller will be responsible for any expenses incurred on Seller's behalf andBuyer will be responsible for any expenses incurred on Buyer's behalf.

Typical Oklahoma Conventional Loan Process

Once a current or future property owner (the Borrower) has decided to use financing on a property, the first step in the "Conventional Loan" process is to obtain a credit report from the Loan Originator (the local contact for the Lender). The credit report should be from a national source to identify any "glitches" that may be on larger databases, and not just from a local reporting agency. The credit report many times generates a credit score that help the Lender (the Mortgage Company) establish a profile of the Borrower's payment history. Please note that the ability of the Borrower to obtain credit is not necessarily a reflection of a good credit score, which focuses on payment timeliness, collections and the amount of credit already extended. The credit report also should show all of the borrowers current debts (including credit cards) and their associated payments. This process involves signing a credit authorization and includes the Borrower's (and Co-Borrower's/Spouse's) Social Security Number(s) and takes about ten minutes. A list of creditors and their contact information for corrections should also be provided for the Borrower's reference. Many times the accounts are reported twice or may not have been properly released, and create an ongoing problem with our current state of technology.

Once a report shows a satisfactory credit score, the income of the Borrower is compared to the debts of the Borrower to obtain a "Debt Ratio", which shows if a Borrower has too much debt to handle the loan payment. A Good Faith Estimate is generated that identifies the costs the Borrower will incur to get the loan for example loan application fees, appraisals, surveys, abstracting, title opinions, document preparation and recording, discount points ( percentage of loan to buy a rate down, if any) and origination fees (percentage of the loan charged to process the loan, earnest money refund oklahoma, if any). The Good Faith Estimate also shows the amount of money needed for prepaid items like interest, property taxes and property insurance.

When the debt ratio appears within limits and the Good Faith Estimate is acceptable, a loan application must be completed and signed by the Borrower(s) and sent to the Lender. (In some refinancing cases, the Borrower may pay for an appraisal prior to submitting the loan application, to determine the maximum amount of the loan they can acquire. In a purchase situation, the contract will determine the maximum value, as long as supported by the appraisal.)

A list of things to bring to the loan application appointment will assist the Borrower in gathering documents that the Lender's underwriter will need for their review. The underwriter may ask for explanations or additional documentation depending on the circumstances and many times can not be absolutely anticipated by the Loan Originator. Borrower's that are self-employed or own interests in real estate investments, partnerships, corporations or trusts will have to provide more information and the process may take longer and require more explanations, but can be rewarded by a low interest rate compared to local bank financing which may be easier to obtain although at a higher rate and shorter term.

Once the loan application has been submitted and most of the underwriter's credit requirements have been satisfied, a Conditional Approval is issued by the Lender. This generally involves a few more conditions to be satisfied like earnest money refund oklahoma title and the proper appraised value for the loan, but may require a few earnest money refund oklahoma detailed explanations. At this time the rate can be locked (or fixed) and an appraisal, survey and abstract bring-to-date best way to invest money for retirement income ordered. Once the abstract is brought to date, the Borrower's attorney will prepare a title opinion in order to get a commitment for the title insurance policy for the Lender, earnest money refund oklahoma. Any title problems must be cleared at this time and prior to proceeding further. In such cases where the loan is larger than 80% (75% when any cash is taken out) of the appraised value, earnest money refund oklahoma, additional insurance called Private Mortgage Insurance (PMI) must be collected until the loan principle value falls below the required limit previously mentioned.

 Once clear title has been determined, then the appraisals, surveys, inspections, etc. are coordinated through the closing company. The "Closing Date" can then be set, earnest money refund oklahoma. At the "Closing", the Borrower will be shown a "Settlement Statement" which will have all of the expenses charged to the Borrower. The Borrower will sign any loan documents or affiliated forms. Funds will be exchanged and the sale will be "Closed" (or there will be a three-day right to rescind in the event of refinancing prior to funding). The mortgage is filed at the County Court House proving earnest money refund oklahoma you owe money on the property, earnest money refund oklahoma, and the copy of the mortgage is placed in the abstract, for future reference.

We are committed to respecting your right to privacy and protecting your information when you visit or use our services.

This privacy policy also describes the choices available to you regarding our use of your personal information and how you can access and update this information.

We want you to understand what information we gather about you, how we use it and the safeguards we have in place to protect it. This Privacy Policy applies to information collected through this website and otherwise. Your use of this website and our services, and any disputes arising from it, is subject to this Privacy Policy as well as the Terms of Use and all its dispute resolution provisions, including arbitration, limitation on damages and choice of law.

This website is a general audience site and we do not knowingly collect personal information from children under the age of

If you have questions or concerns regarding this policy, earnest money refund oklahoma, you should first contact our website and advertising vendor at support@www.oldyorkcellars.com

1, earnest money refund oklahoma. Collection and Use of Your Personal Information
We collect Personal Information from you only when you voluntarily submit it in order to obtain certain information, including without earnest money refund oklahoma (A) requests to find out more about our programs; (B) requests to contact earnest money refund oklahoma and (C) requests to forward your information money makin mitch lyrics one of our affiliates.

We honor all “do not track” requests and settings. If you use any signal(s) or other mechanism(s) that provides you the ability to exercise choice regarding the collection of personally identifiable information about your online activities over time and across third-party websites or online services, we will not attempt to override such signals or mechanisms, nor will we track your use of any such signal or mechanism. When you use our website, no other parties can collect personally identifiable information about your online activities over time and across different websites. Your choice is indicated by your settings in your web browser. A “do not track” indication sent from your web browser will result in any tracking activity (i.e., tracking cookies) within the website to be programmatically disabled.

By clicking the Submit button, you agree to have your information shared with us and for us to contact you via telephone, mobile phone (including through automated dialing, text SMS/MMS, or pre-recorded messaging) and/or email, even if your telephone number is on a corporate, state, or earnest money refund oklahoma National Do Not Call Registry, and you agree to our Privacy Policy.
Special Notice to California Residents. If you are a resident of California, in addition to the rights set forth in this Privacy Policy:

1. We will not share any personal information about you to the extent prohibited by applicable California law or to the extent your prior consent to share is required by applicable California law; and

earnest money refund oklahoma. You have the right to request information from us regarding the manner in which we share certain categories of information with third parties for their earnest money refund oklahoma marketing purposes. California law gives you the right to send us a request at a designated address to receive the following information

• the categories of information we disclosed to third parties for their direct marketing purposes during the preceding calendar year
• the names and addresses of the third parties that received that information; and
• if the nature of the third party's business cannot be determined from their name, examples of the products or earnest money refund oklahoma marketed.

The rights of Users

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Earnest money is an initial payment that a homebuyer offers to a seller in order to sign a purchase agreement letter. Earnest money deposits are fairly common in competitive markets, especially when a seller is concerned that a buyer may make multiple offers on numerous properties.

It may possible to buy a home without putting down earnest money, but it is uncommon, and it is rare that a seller will waive an earnest money deposit.

As soon as an agent or broker accepts an earnest money deposit on behalf of a seller, they become an escrow agent, and the money is placed in an escrow account. earnest money refund oklahoma In most cases, when it enters into escrow, the earnest money cannot be released until both parties provide written permission. If a deal falls apart because the home doesn't pass inspection or doesn't appraise high enough, the earnest money will most likely be returned.

Earnest Money Deposits

The rules that govern earnest money deposits in real estate transactions vary from state to state. It is common for prospective buyers to set down earnest money equal to 1 to 5% of the purchase price of the home. For example, if you are buying a $, home, you may end up making an earnest money deposit for as much as $20, just to show the seller you are a serious buyer.

In most cases, the earnest money, earnest money refund oklahoma, once released, is applied as part of the down payment or used to pay closing costs.

Potential homebuyers are discouraged from giving earnest money in cash directly to a seller, for multiple reasons, namely, it may be harder to get your money back if the deal falls apart.

The Release of Earnest Money

There are very few universal rules when it comes to handling earnest money. Instead, the rules are established in the sales and purchase agreement of the home. The agreement covers how refunds are handled—if there is a cancellation fee if the buyer backs out and under what parameters the broker or title company determines if the money is returned.

It is always a good idea for the broker to seek a written release from both parties before releasing the earnest money deposit. If both parties claim the deposit, the broker should not release the funds until the two sides have come to terms or a court order is presented.

The accounting for investment in marketable debt and equity securities common contract we see companies to invest in now uk the Oklahoma Real Estate Commission&#;s Residential Sales Contract. This is a standard real estate contract used to purchase residential homes. It can also be used to purchase acreages, earnest money refund oklahoma, but for land and larger properties, we typically use either a land contract or a farm/ranch contract. You can download a copy by clicking on the link.

My comments are earnest money refund oklahoma italics.

Opening

 The Parties’ signatures at the end of the Contract, which includes any attachments or documents incorporated by reference, with delivery to their respective Brokers, if applicable, will create a valid and binding Contract, earnest money refund oklahoma, which sets forth their complete understanding of the terms of the Contract. This agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors and permitted assigns. The Contract shall be executed by original signatures of the parties or by signatures as reflected on separate identical Contract counterparts (carbon, earnest money refund oklahoma, photo or fax copies). The parties agree that as to all aspects of this transaction involving documents an electronic signature shall have the same force and effect as an original signature pursuant to the provisions of the Uniform Electronic Transactions Act, 12A, Oklahoma Statutes, Section et seq. All prior verbal or written negotiations, representations and agreements are superceded by the Contract, which may only be modified or assigned by a further written agreement of Buyer and Seller. Seller agrees to sell and convey by General Warranty Deed, earnest money refund oklahoma, and Buyer agrees to accept such deed and buy the Property described herein, on the following terms and conditions:

This section basically says that any other prior agreements, verbal or written, are superseded by this written contract.  So whatever was said during negotiations, if it is not in this contract or an addendum, is not valid.  It also says the seller is conveying a General Warranty Deed.

Section 1

 The Property shall consist of the following described real estate located in _____________________________ County, Oklahoma.

1. LEGAL DESCRIPTION.  &#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;&#;

Together with all fixtures and improvements, and all appurtenances, subject to existing zoning ordinances, plat or deed restrictions, utility easements serving the Property, including all mineral rights owned by Seller, which may be subject to lease, unless expressly reserved by Seller in the Contract and excluding mineral rights previously reserved or conveyed of record (collectively referred to as “the Property”.)

Section one contains the legal description of the property.  An address is NOT a legal description.  The legal description is what is on the tax records.  This section also says the property includes fixtures & improvements and is subject to zoning and other restrictions unless otherwise spelled out and reserved in the contract.  This contract excludes mineral rights, although those can be added (but seldom are on a residential property purchase).

Section 2

 Purchase Price, Earnest Money and source of funds. This is a CASH TRANSACTION unless a Financing Supplement is attached. The Purchase Price is $__________________________ payable by Buyer as follows: Buyer has paid $__________________________ as Earnest Money on execution of the Contract, and Buyer shall earnest money refund oklahoma the balance of the purchase price and Buyer’s Closing costs at Closing. Upon execution earnest money refund oklahoma the Contract, the Earnest Money shall be deposited in the trust account of ______________________________________or if left blank, the Listing Broker’s trust account, as part payment of the purchase price and/or closing costs. If interest accrues on Earnest Money Earnest money refund oklahoma in Listing Broker’s trust account, said interest shall be paid to “Oklahoma Housing Foundation”.

This basically spells out the purchase price and the earnest money that is offered by the buyer. The earnest money is deposited into a trust account that is protected by law, and usually is a trust account controlled by the listing or selling broker.  This money is brought to the closing as part of your down payment.

Section 3

 ClosingFUNDING AND Possession. The Closing process includes execution of documents, delivery of deed and receipt of funds by Seller and shall be completed on or before __________________________________________, earnest money refund oklahoma, (“Closing Date”) or not later than __________________________________ days (five [5] days if left blank) thereafter caused by a delay of the Closing process, or such later date as may be necessary in the Title Evidence Paragraph of earnest money refund oklahoma Contract. Possession shall be transferred upon conclusion of Closing process unless otherwise provided below: _______________________________. In addition to costs and expenses otherwise required to be paid in accordance with terms of the Contract, Buyer shall pay Buyer’s Closing fee, Buyer’s recording fees, and all other expenses required from Buyer. Seller shall pay documentary stamps required, Seller’s Closing fee, Seller’s recording fees, if any, and all other expenses required from Seller. Funds required from Buyer and Seller at Closing shall be either cash, cashier’s check or wire transfer.

Section 3 basically spells out the closing and possession date. This is date is typically days from the contract signing date, although it can happen sooner and sometimes takes longer depending on the circumstances of the real estate transaction.

Section 4

 4. ACCESSORIES, EQUIPMENT AND SYSTEMS. The following items, if existing on the Property, earnest money refund oklahoma, unless otherwise excluded, shall remain with the Property at no additional cost to Buyer:

• • Attic and ceiling fan(s)
• • Bathroom mirror(s)
• • Other mirrors, if attached
• • Central vacuum & attachments
• • Floor coverings, if attached
• • Key(s) to the property
• • Built-in and under cabinet/counter appliance(s)
• • Free standing slide-in/drop-in kitchen stove
• • Built-in sound system(s)/speaker(s)
• • Lighting & light fixtures
• • Fire, earnest money refund oklahoma, smoke and security system(s), if owned
• • Shelving, if attached
• • Fireplace inserts, logs, grates, doors and screens
• • Free standing heating unit(s)
• • Humidifier(s), if attached
• • Water conditioning systems, if owned
• • Window treatments & coverings, interior & exterior
• • Storm windows, screens & storm doors
• • Garage door opener(s) & remote transmitting unit(s)
• • Fences (includes sub-surface electric & components)
• • Mailboxes/Flag poles
• • Outside cooking unit(s), if attached
• • Propane tank(s) if owned
• • TV antennas/satellite dish system(s) and control(s), if owned
• • Sprinkler systems & control(s)
• • Swimming Pool/Spa equipment/ accessories
• • Attached recreational equipment
• • Exterior landscaping and lighting
• • Entry gate control(s)
• • Water meter, sewer/trash membership, if owned
• • All remote controls, if applicable
• • Transferable Service Agreements and Product Warranties

A. Additional Inclusions. The following items shall also remain with earnest money refund oklahoma Property at no additional cost to Buyer: _______________________________

B. Exclusions. The following items shall not remain with the Property: _____________________________________.

Here the items that typically remain with the home are spelled out in writing so that everyone is clear what stays and what goes with the home.  If the seller wants to reserved an existing item such as a special mirror, then it is spelled out in the exclusions, earnest money refund oklahoma.  If the buyer and seller agree that an item will remain with the property, such as an outdoor playground, then that item is also designated in this part of the contract.

Section 5

Time periods specified in Contract. Time periods for Investigations, earnest money refund oklahoma, Inspections and Reviews and Financing Supplement shall commence on __________________________________________ ( Time Reference Date), regardless of the date the Contract is signed by Buyer and Seller. The day after the Time Reference Date shall be counted as day one (1). If left blank, the Time Reference Date shall be the third day after the last date of signatures of the parties.

This is one of the most important dates in the contract, because this defines the Time Reference Date.  Many people overlook this date in the contract, but this is a key date that many other dates in the contract reference. The contract can be signed a month in advanced, but many of the activities such as inspections reference the time reference date instead.  We typically like to start this time reference date a week or so after the contract is signed.  This gives the buyer time to line up inspections, earnest money refund oklahoma, get their financial paperwork in place, etc. investing money in bonds uk many cases this time reference date is more important than the contract signing date!

 Section 6

 RESIDENTIAL PROPERTY CONDITION DISCLOSURE. No representations by Seller regarding the condition of Property or environmental hazards are expressed or implied, other than as specified in the Oklahoma Residential Property Condition Disclosure Statement (“Disclosure Statement”) or the Oklahoma Property Condition Disclaimer Statement (“Disclaimer Statement”), if applicable. A real estate licensee has no duty to Seller or Buyer to conduct an independent inspection of the Property and has no duty to independently verify accuracy or completeness of any statement made by Seller in the Disclosure Statement and any amendment or the Disclaimer Statement.

This states that the seller makes no representations about the property other than the Oklahoma Residential Property Condition Statement, which is normally included in the contract.  The seller is required by law to list what they know about the property on this disclosure statement.  This part of the contract also clarifies that is not the Realtor&#;s responsibility to conduct inspections or make representations about the property.

Section 7

 INVESTIGATIONS, INSPECTIONS and REVIEWS.

A. Buyer shall have ____________ days (10 days if left blank) after the Time Reference Date to complete any investigations, inspections, and reviews. Seller shall have water, gas and electricity turned on and serving the Property for Buyer’s inspections, earnest money refund oklahoma, and through the date of possession or Closing, whichever occurs first. If required by ordinance, Seller, or Seller’s Broker, if applicable, shall deliver to Buyer, earnest money refund oklahoma, in care of Buyer’s Broker, if applicable, within five (5) days after the Time Reference Date any written notices affecting the Property.

B. Buyer, together with persons deemed qualified by Buyer and at Buyer’s expense, shall have the right to enter upon the Property to conduct any and all investigations, inspections, earnest money refund oklahoma, and reviews of the Property. Buyer’s right to enter upon the Property shall extend to Oklahoma licensed Home Inspectors and licensed architects for purposes of performing a home inspection. Buyer’s right to enter upon the Property shall also extend to registered professional engineers, professional craftsman and/or other individuals retained by Buyer to canadian value investing stocks a limited or specialized investigation, inspection or review of the Property pursuant to a license or registration from the appropriate State licensing board, commission or department. Finally, Buyer’s right to enter upon the Property shall extend to any other person representing Buyer to conduct an investigation, inspection and/or review which is lawful but otherwise unregulated or unlicensed under Oklahoma Law. Buyer’s investigations, inspections, and reviews may include, but not be limited to, the following:

1. Disclosure Statement or Disclaimer Statement unless exempt
2. Flood, Storm Run off Water, Storm Sewer Backup or Water History
3. Psychologically Impacted Property and Megan’s Law
4. Hazard Insurance (Property insurability)
5. Environmental Risks, earnest money refund oklahoma, including, but not limited to soil, air, water, hydrocarbon, chemical, carbon, asbestos, mold, radon gas, lead-based paint
6. Roof, structural members, roof decking, earnest money refund oklahoma, coverings and related components
7. Home Inspection
8. Structural Inspection
9. Fixtures, Equipment and Systems Inspection. All fixtures, equipment and systems relating to plumbing (including sewer/septic system and water supply), heating, cooling, electrical, built-in appliances, swimming pool, spa, sprinkler systems, and security systems
10.  Termites and other Wood Destroying Insects Inspection
11. Use of Property.  Property use restrictions, earnest money refund oklahoma, building restrictions, easements, restrictive covenants, zoning ordinances and regulations, mandatory Homeowner Associations and dues
12. Square Footage.  Buyer shall not rely on any quoted square footage and shall have the right to measure the Property.
13.  ___________________________________

C. TreatmentsRepairs and Replacements (trr).

1)  TERMITE Treatments AND OTHER Wood Destro value of one bitcoin stock INSECTS. Seller’s obligation to pay treatment and repair cost in relation to termites and other wood destroying insects shall be limited to earnest money refund oklahoma residential structure, earnest money refund oklahoma, garage(s) and other structures as designated in Paragraph 13 of the Contract and as provided in subparagraph C2b below.

2)  TREATMENTS, RepairsReplacements and Reviews. Buyer or Buyer’s Broker, if applicable, within 24 hours after expiration of the time period referenced in Paragraph 7A of the Contract, shall deliver to Seller, in care of the Seller’s Broker, if applicable, a copy of all written reports obtained by Buyer, if any, pertaining to the Property and Buyer shall select one of the following:

a. If, in the sole opinion of the Buyer, results of Investigations, Inspections or Reviews are unsatisfactory, the Buyer may cancel the Contract earnest money refund oklahoma delivering written notice of cancellation to Seller, in care of Seller’s Broker, if applicable, and receive refund of Earnest Money.

OR

b. Buyer, earnest money refund oklahoma completion of all Investigations, Inspections and Reviews, waives Buyer’s right to cancel as provided in 7C2a above, by delivering to Seller, earnest money refund oklahoma, in care of Seller’s Broker, if applicable, a written list on a Notice of Treatments, Repairs, and Replacements form (TRR form) of those items to be treated, repaired or replaced (including repairs caused by termites and other wood destroying insects) that are not in normal working order (defined as the system or component functions without defect for the primary purpose and manner for which it earnest money refund oklahoma installed. Defect means a condition, malfunction or problem, earnest money refund oklahoma, which is not decorative, earnest money refund oklahoma, that will have a materially adverse effect on the value of a system or earnest money refund oklahoma. Seller shall have __________ days (5 days if blank) after receipt of the completed TRR form from Seller’s Broker, if applicable, to obtain costs estimates. Seller agrees to pay up to $________________ (“Repair Cap”) of costs of TRR’s. If Seller, or Seller’s Broker, if applicable, obtains cost estimates which exceed Repair Cap, Seller, or Seller’s Broker, if applicable, shall notify Buyer or Buyer’s Broker, if applicable, in writing, within two days after receipt of cost estimates. If the amount of the TRR’s exceed the amount of the Repair Cap, Buyer and Seller shall have __________ days (3 days if blank) thereafter to negotiate the payment of costs in excess of Repair Cap. If a written agreement is reached, Seller shall complete all agreed TRR’s prior to the Closing Date, earnest money refund oklahoma. If an agreement is not reached within the time specified in this provision, the Contract shall become null and void and Earnest Money returned to Buyer.

ii, earnest money refund oklahoma. If Seller fails to obtain cost estimates within the stated time, Buyer shall then have ___________ days (5 days if blank) to:

a) Enter upon the Property to obtain costs estimates and require Seller to be responsible for all TRR’s as noted on Buyer’s TRR form, up to the Repair Cap; and,

b) If the amount of the TRR’s exceed the amount of the Repair Cap, Buyer and Seller shall have __________ days (3 days if blank) thereafter to negotiate the payment of costs in excess of Repair Cap. If a written agreement is reached, Seller shall complete all agreed TRR’s prior to the Closing Date. If an agreement is not reached within the time specified in this provision, the Contract shall become null and void and Earnest Money returned to Buyer.

D. Expiration of Buyer’s Right to Cancel Contract .

1) Failure of Buyer to complete one of the following shall constitute acceptance of the Property regardless of its condition:

a. Earnest money refund oklahoma any Investigations, Inspections or Reviews;

b. Deliver a written list on a TRR form of items to be treated, repaired and replaced; or

c. Cancel the Contract within the time periods in Investigations, earnest money refund oklahoma, Inspections or Reviews Paragraph.

2) After expiration of the time periods earnest money refund oklahoma Investigations, Earnest money refund oklahoma and Reviews Paragraph, Buyer’s inability to obtain a loan based on unavailability of hazard insurance coverage shall not relieve the Buyer of the obligation to close transaction.

3) After expiration of the time periods in Investigations, Inspections and Reviews Paragraph, any square footage calculation of the dwelling, earnest money refund oklahoma, including but not limited to appraisal or survey, indicating more or less than quoted, shall not relieve the Buyer of the obligation to close this transaction.

E. Inspection of TreatmentsRepairs and Replacements and final walk -through .

1) Buyer, or other persons Buyer deems qualified, may perform re-inspections of Property pertaining to Treatments, Repairs and Replacements.

2) Buyer may perform a final walk-through inspection, which Seller may attend. Seller shall deliver Property in the same condition as it was on the date upon which Contract was signed by Buyer (ordinary wear and tear excepted) subject to Treatments, Repairs and Replacements.

3) All inspections and re-inspections empirical studies of returns earned by investment companies indicate that be paid by Buyer, unless prohibited by mortgage lender.

Section 7 spells out the buyers rights to inspection and review of the property.  It tells how many days the buyer has to conduct their inspections, based off the time reference date.  It also spells out that the seller will allow the buyer and buyer&#;s representatives onto the property to conduct inspections, and the seller will make sure that all utilities are in working order so the buyer can conduct said inspections. It also global value chains investment and trade for development out how long the seller has to correct the deficiencies found.  This is also where the repair cap is spelled out.  The repair cap is a pre-agreed amount of repairs the seller agrees to make for the buyer.  If the estimated repairs are above the agreed upon repair cap, then buyer and seller can renegotiate the contract or the buyer may withdraw from the contract and receive their earnest money back.

Section 8

Hello, I&#;m Marcie Billen with Ruya Team Realty and Keller Williams Mulinix here inNorman, Oklahoma and today I&#;m going to answer the question, is earnest money refundable? I want to answer this question from both a buyer&#;s perspective and the earnest money refund oklahoma, but if you&#;re thinking about purchasing a house, you may want to watch this video next. If you&#;re thinking about selling your house, you may want to start by watching these videos.

What is Earnest Money?

What is earnest money? Earnest money is anamount of money that&#;s actually written earnest money refund oklahoma the Oklahoma sales contract and it&#;s deposited into a trust account, earnest money refund oklahoma. It&#;s not just a check that the title company or your real estate agent holds for you, but they actually put it into an account and honestly, I like to think of it kind of like blood money. Like you&#;re saying &#;hey, I&#;m really serious about this house so I want to buy it, and here&#;s my thousand dollars, or five hundred dollars, or two thousand dollars, depending on the purchase price, to show you, the seller, that I&#;m really serious about purchasing this house.&#;

What Happens to My Earnest Money Deposit?

What happens to this earnest money? Does it just disappear at the closing table? Does earnest money refund oklahoma seller get to keep it? No, earnest money refund oklahoma, no, no. Actually, all that earnest money does is go directly into your down payment. Does theseller get to keep it? Well kind of, yeah, because you&#;re paying them for the house, but it&#;s gonna go toward your down payment, as the buyer.

Don&#;t forget to download our Relocation Guide for the inside scoop on living in Oklahoma!

How Much Earnest Invest bitcoin and earn Do I Need?

How much earnest money do you actually need? Here in Oklahoma, we don&#;t have a hard, set amount. What I do, as a real estate agent, earnest money refund oklahoma, generally I recommend that my clients do around 1%. If it&#;s more or a little less, that&#;s okay. As an example, if you&#;re buying a $, house, I&#;m totally okay with you putting $ as earnest money, as long as the seller&#;s okay with that. And then if you&#;re buying a $, house we&#;ll probably say two thousand or twenty five hundred dollars for your earnest money.

Is Earnest Money Refundable?

Yeah! For a buyer, earnest money refund oklahoma, absolutely. I&#;ve never actually had the experience, in my career, where the seller gets to keep the earnest money from the buyer. And I have another video on this too, about breaking the contract. You can watch it here. So for instance, as a buyer, if you back out of the real estate contract when in home inspections, earnest money refund oklahoma, you earnest money refund oklahoma typically get your money back, earnest money refund oklahoma. Now, both buyer and seller have to agree to this.

Another thing that people don&#;t realize it is, let&#;s say the day mginger earn money sms closing something happens like your boss fires you, right? The bank calls your boss or your HR department the day before closing to make sure that you have a job and if they say &#;no, I&#;m sorry, they don&#;t work here anymore,&#; then you&#;re gonna be denied for your home loan, typically. If that happens then technically, as per the Oklahoma real estate contract, you would receive a refund for your earnest money because you were denied a loan and you can&#;t buy the house. However, both buyer and seller still have to agree.

Can Sellers Keep the Earnest Money?

Okay sellers, this earnest money was never really yours unless that purchase contract actually goes through. This is money that the buyer submits to show that they&#;re very serious about the house. And you want them to be serious about that, right? I commonly get asked by sellers &#;well, if the buyer backs out of the contract do I get to keep the earnest money?&#; Typically, no.

Why? The biggest reason is that you have a house and they don&#;t. If the buyer kept to the timelines, and they did their inspection everything happened and then you know, earnest money refund oklahoma, right before closing, earnest money refund oklahoma, they get denied for a earnest money refund oklahoma, technically earnest money refund oklahoma still get their earnest money back in full. Generally, the only way a seller would get to keep that earnest money is if the buyer just changes their mind right before closing or after the inspection period and they don&#;t have a denial letter from their lender. In that situation, I&#;ve heard about it from other Realtors, the buyer usually feels bad for keeping your house off the market for a month or however long, and they are more likely to give up that earnest money. But that all depends on the emotions of the situation.

Was this answer helpful? If you have more questions, feel free to reach out &#; I am happy to help!

Marcie Billen