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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 385. Department of the Commissioners of the Land Office |
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Chapter 25. Surface Leasing for Agricultural and Commercial Purposes |
SECTION 385:25-1-41. Procedure for Exchanging Land
Latest version.
- (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 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 the CLO lands.