Okla. Admin. Code § 385:25-1-41

Current through Vol. 42, No. 4, November 1, 2024

Section 385:25-1-41 - Procedure for Exchanging Land

(a)Authorization. The Commissioners may authorize exchange of lands held in Trust for other lands held by other entities on an equal value basis.

(b)Criteria. It is the intent of the CLO to exchange lands held in Trust that are landlocked, too small in size to be an economic unit, low productivity, or transitional properties.

(c)Appraisal. An appraisal for market value of the properties to be exchanged will be completed by three duly authorized appraisers. The parties may mutually agree on three appraisers. In the event that the parties cannot mutually agree on three appraisers, the CLO will choose an appraiser, the other entity will choose an appraiser and then the two appraisers will select a third appraiser. The appraisers will determine the market value of the respective properties and make a consensus appraisal report.

(d)Valuation of Improvements of Agricultural Properties. The intent of the exchange is for the Trust to receive equal value of land in exchange for equal value of land. Since improvements are a depreciating asset and may be removed by the owner of record and the CLO typically does not own improvements, the appraisal should only consider the value of the lands to be exchanged. Improvements such as waterwells, ponds, terraces, etc. are considered a part of the land and will not be considered within the exchange as a separate item.

(e)Exchanges for Commercial Properties. If the entity which is exchanging land with the CLO is exchanging commercial properties the improvements will be included as an essential element of the appraisal.

(f)Title. The entity which is exchanging land with the CLO shall provide an abstract of title for examination by the CLO or good and sufficient title insurance for the land being offered in the exchange. The CLO shall provide the entity an official certificate of record for the land owned by the CLO but does not warrant title.

(g)Deeds. The entity exchanging land with the CLO will provide a warranty deed for its lands and the CLO shall provide a patent to the entity for school lands acquired at statehood. The CLO shall provide a quit claim deed for school lands acquired after statehood.

Okla. Admin. Code § 385:25-1-41

Added at 22 Ok Reg 2094, eff 6-25-05; Amended at 29 Ok Reg 1306, eff 6-25-12

Amended by Oklahoma Register, Volume 41, Issue 22, August 1, 2024, eff. 8/11/2024