SB 877: Deed regulation; real estate licensing; requiring certain continuing education course; requiring certain notification to buyer. Effective date. - Oklahoma

Floor (House) → Floor (Senate) · 5 edits

MODERATE

The bill was revised to move from a House version to a Senate version, incorporating specific amendments to the Oklahoma Real Estate License Code. The most significant substantive change is the addition of a new felony penalty for 'deed theft,' punishable by up to two years in prison or a fine. The bill also reorganized and expanded definitions regarding real estate transactions and clarified continuing education requirements for licensees.

Scope change

The bill's scope expanded to include a new criminal penalty for deed theft and updated statutory definitions to better cover various transaction activities.

ENFORCEMENT

Added a new felony penalty for deed theft, punishable by up to two years in prison or a fine of up to $5,000.

DEFINITION

Expanded the definition of 'deed theft' to include misrepresenting oneself as an owner or authorized representative to obtain property.

Added new definitions for 'Party' and 'Transaction' to clarify who is covered under the real estate license code.

REQUIREMENT

Reorganized the list of approved continuing education providers and clarified requirements for nonresident licensees.

Added a requirement for buyers to receive and sign a notification regarding the signs and risks of deed theft at closing.

SB877 (3-11-25) (BULLARD) FS FA1.PDF → Floor (House) · 3 edits

MINOR

The bill text was updated to reflect its progression from the Senate floor to the House floor, changing the document title from 'Floor Substitute' to 'Committee Substitute' and adding the House sponsor, Hamilton. The substantive policy content regarding deed theft definitions and continuing education requirements remains consistent with the previous version, though minor formatting adjustments were made to the statutory text.

Scope change

The bill's scope and applicability remain unchanged; the modifications are administrative updates reflecting the bill's movement through the legislative process.

TECHNICAL

The document header was updated to indicate this is the 'House of Representatives - Floor Version' and lists Hamilton as a co-sponsor, replacing the previous 'Floor Substitute' title.

Minor formatting adjustments were made to the statutory text, such as changing the list of exempt entities in Section 858-307.2 and renumbering definition items in Section 858-351 to align with House markup standards.

The effective date in Section 4 was truncated in the final line of the provided text, cutting off the year '2025'.

House Committee Substitute for Senate Bill → SB877 (3-11-25) (BULLARD) FS FA1.PDF · 5 edits

MODERATE

The bill was reclassified from a 'Committee Substitute' to a 'Floor Substitute,' indicating it has moved to the final stage of legislative consideration. Substantively, the bill removes a requirement to amend a section regarding real estate licensing that was previously added by another law, effectively deleting that specific amendment from this bill's scope. It retains the core provisions requiring real estate licensees to complete continuing education on deed theft by November 2028 and mandates that buyers receive notification of deed theft risks at closing.

Scope change

The bill's scope is narrowed by removing the intent to amend Section 858-353, which previously dealt with codification of rules related to deed theft. The remaining sections focus on continuing education requirements and buyer notification.

REQUIREMENT

Removed the instruction to amend Section 858-353 of the Oklahoma Statutes, which previously required the Real Estate Commission to codify certain rules regarding deed theft.

Established a new requirement for licensed real estate brokers to notify buyers of deed theft signs and risks during every transaction closing.

TECHNICAL

Changed the document title from 'Committee Substitute' to 'Floor Substitute,' reflecting its progression in the legislative process.

DEFINITION

Refined the definition of 'Deed theft' to explicitly include misrepresenting oneself as an owner or authorized representative to obtain property, alongside forgery and fraud.

TIMELINE

Set a deadline of November 1, 2028, for all real estate licensees to complete continuing education courses on deed theft.

Proposed Policy Committee Substitute 2 → House Committee Substitute for Senate Bill · 3 edits

MINOR

The bill was amended to add a specific requirement for real estate licensees to complete continuing education courses on deed theft by November 1, 2028. It also updated the legal definition of 'deed theft' to include misrepresenting oneself as an owner to obtain property and added a new mandate requiring brokers to notify buyers of deed theft risks at closing.

Scope change

The bill's scope expanded to include a new mandatory continuing education topic (deed theft) and a new closing disclosure requirement for buyers.

REQUIREMENT

Added a requirement for licensees to complete continuing education on deed theft by November 1, 2028.

Mandated that licensed brokers must provide buyers with notification of deed theft signs and risks during the closing of a transaction.

DEFINITION

Expanded the definition of 'deed theft' to include misrepresenting oneself as an owner or authorized representative to obtain ownership or possession of real property.

Proposed Policy Committee Substitute 1 → Proposed Policy Committee Substitute 2 · 3 edits

MINOR

The bill was re-submitted with a new version number and updated page tracking numbers. The most significant substantive change is the redefinition of 'deed theft' to explicitly include the intent to unlawfully transfer or encumber ownership rights, broadening the scope of prohibited conduct. Additionally, the definition of 'firm' was modified to include 'association' and remove the semicolon, clarifying the types of business entities covered.

Scope change

The scope of the 'deed theft' definition was expanded to cover a wider range of fraudulent activities involving real property ownership.

DEFINITION

The definition of 'deed theft' was updated to explicitly include the intent to unlawfully transfer or encumber ownership rights, broadening the legal interpretation of the crime.

The definition of 'firm' was revised to include 'association' and remove a semicolon, clarifying the list of eligible business entities.

TECHNICAL

The document version number was updated from POLPCS1 to POLPCS2, and page tracking numbers were changed from 13410 to 13477.

Enrolled (final version) → Proposed Policy Committee Substitute 1 · 3 edits

MINOR

The bill was completely rewritten to expand its scope from just deed theft to include broader real estate licensing regulations. The new version adds a requirement for written memorials of services, updates the definition of 'deed theft' to specifically cover residential and commercial properties, and references a new section regarding renewal requirements.

Scope change

The bill's scope expanded significantly from focusing solely on deed theft prevention to encompassing general real estate licensing, continuing education, and specific documentation requirements for services.

SCOPE

The subject matter was broadened to include amending Sections 858-351 and 858-353, adding requirements for written memorials of services, and prescribing renewal requirements.

DEFINITION

The definition of 'deed theft' was updated to explicitly mention 'residential or commercial property' and 'property documents such as a residential or commercial deed or title'.

REQUIREMENT

New requirements were added for the Oklahoma Real Estate Commission to prescribe content and requirements related to license renewal.

Engrossed → Enrolled (final version) · 4 edits · May 29, 2025

MODERATE

The bill was finalized and formatted for publication as an Enrolled Act, removing draft markings and adding official signatures. Substantively, the bill defines 'deed theft' to include misrepresenting oneself as an owner to obtain property and requires real estate brokers to notify buyers of deed theft risks at closing. It also mandates that all real estate licensees complete specific continuing education on deed theft by November 1, 2028.

Scope change

The scope of the continuing education requirement was expanded to include all licensees, with specific exemptions for nonresidents who are compliant in their home state and for inactive licenses.

DEFINITION

Added a specific definition for 'deed theft' that includes misrepresenting oneself as an owner or authorized representative to obtain ownership or possession of real property.

REQUIREMENT

Added a requirement for real estate brokers to provide written notification of deed theft signs and risks to buyers at the time of closing.

Added a mandate for all real estate licensees to complete continuing education courses on deed theft by November 1, 2028.

TECHNICAL

Changed the document status from 'Engrossed' (draft) to 'Enrolled' (final version) and added official signatures for the Senate, House, and Governor.

Amended And Engrossed → Engrossed · 4 edits · May 22, 2025

MODERATE

The bill was renumbered from an 'Amended House' version to the final 'Engrossed Senate' version. The substantive policy changes include updating the deadline for deed theft continuing education to November 1, 2028, and adding a new requirement for brokers to provide buyers with written notification about deed theft risks at closing.

Scope change

The scope of applicability remains focused on real estate licensees and buyers in Oklahoma transactions, with no changes to the entities covered.

TIMELINE

The deadline for completing deed theft continuing education courses was changed from November 1, 2025, to November 1, 2028.

REQUIREMENT

A new requirement was added mandating that licensed real estate brokers provide buyers with written notification regarding the signs and risks of deed theft at the time of closing.

DEFINITION

The definition of 'Transaction' was slightly modified to include 'lease, rent, option, or exchange' activities more explicitly.

TECHNICAL

The bill title and page numbering were updated to reflect the final engrossed version, and the effective date was set to November 1, 2025.

Introduced → Amended And Engrossed · 3 edits · May 22, 2025

MINOR

The bill was amended to reorganize the statute by moving the definition of 'deed theft' into the existing real estate licensing code (Section 858-351) rather than keeping it in a separate new section. This change clarifies that deed theft is a specific type of misconduct relevant to real estate professionals, ensuring the definition is directly accessible to licensees and the Commission. The substantive criminal penalties and continuing education requirements remain unchanged.

Scope change

The scope of the definition of 'deed theft' was technically modified by relocating it from a standalone section to the definitions section of the Real Estate License Code, making it integral to the licensing statute.

DEFINITION

The definition of 'deed theft' was moved from a new standalone section (Section 1) to the definitions section of 59 O.S. 2021, Section 858-351, to better integrate it with real estate licensing regulations.

TECHNICAL

The bill's title and enacting clause were updated to reflect that it is an amendment to existing sections rather than creating entirely new law, and the text was reorganized into a single continuous amendment.

Minor formatting changes were made to the list of definitions, including renumbering and slight rewording of the 'Transaction' and 'Firm' definitions to ensure consistency.

Deed regulation; real estate licensing; requiring certain continuing education course; requiring certain notification to buyer. Effective date.

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