1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 3255 By: Osburn
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6 AS INTRODUCED
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7 An Act relating to property; amending 60 O.S. 2021,
7 Section 852, which relates to owners associations;
8 requiring an owners association to adopt and comply
8 with a document retention policy; providing minimum
9 requirements; amending 59 O.S. 2021, Section 858-301,
9 which relates to exemptions for license requirements;
10 providing license requirement to engage in the
10 management of an owners association; and effective
11 date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 60 O.S. 2021, Section 852, is
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16 amended to read as follows:
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17 Section 852. A. An "owners association" may be formed by the
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18 owner or owners of real estate development for the purpose of:
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19 1. providing management, maintenance, preservation and control
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20 of commonly owned areas or any portion of or interest in them,
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21 and/or
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22 2. enforcing all mutual, common or reciprocal interests in or
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23 restrictions upon all or portions of such separately owned lots,
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24 parcels, or areas, or both.
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 1 B. An owners association shall be formed by the execution of an
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2 instrument signed and acknowledged by all owners of the real
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3 property included. Such instrument shall set forth in detail the
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4 nature of the obligations of the members and shall be filed of
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5 record in the office of the county clerk of the county wherein the
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6 real property is located. The instrument shall include a
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7 description of said real property.
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8 C. The owners association shall have the power to enforce any
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9 obligation in connection with membership in the owners association
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10 by means of a levy or assessment which may become a lien upon the
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11 separately or commonly owned lots, parcels or areas of defaulting
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12 owners or members, which said lien may be foreclosed in any manner
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13 provided by law for the foreclosure of mortgages or deeds of trust,
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14 with or without a power of sale. In an action brought to enforce
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15 any lien authorized pursuant to the provisions of this section, the
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16 prevailing party shall be entitled to recover reasonable attorney's
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17 fees to be fixed by the court, which shall be taxed as costs in the
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18 action. No lien may be placed or mortgage foreclosed unless the
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19 homeowner was informed in writing upon joining the owners
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20 association of the existence and content of the owners association
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21 restrictions and rules, and of the potential for financial liability
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22 to the individual owner by joining said owners association.
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 1 D. An owners association shall adopt and comply with a document
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2 retention policy that includes, at a minimum, the following
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3 requirements:
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4 1. Real estate development instruments, declaration, covenants,
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5 deed of dedication, owner's certificate, bylaws, articles of
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6 incorporation, easements, and deeds, however designated or titled,
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7 relating to the real estate development common areas and owners
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8 association, and all amendments thereto shall be retained
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9 permanently;
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10 2. Corporate minutes, resolutions, meeting notices, and agendas
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11 shall be retained permanently;
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12 3. Account records of current owners association members shall
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13 be retained for five (5) years;
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14 4. Contracts with a term of one (1) year or more shall be
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15 retained for five (5) years after the expiration of the contract
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16 term;
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17 5. Tax returns and audit records shall be retained for seven
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18 (7) years; and
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19 6. Financial books and records shall be retained for seven (7)
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20 years.
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21 SECTION 2. AMENDATORY 59 O.S. 2021, Section 858-301, is
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22 amended to read as follows:
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23 Section 858-301. It shall be unlawful for any person to act as
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24 a real estate licensee, or to hold himself or herself out as such,
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 1 unless the person shall have been licensed to do so under the
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2 Oklahoma Real Estate License Code. For the purposes of this
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3 section, it shall be considered acting as a real estate licensee for
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4 any person, partnership, trust, association or corporation, or the
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5 partners, officers or employees of any partnership, trust,
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6 association or corporation, to publicly market for sale an equitable
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7 interest in a contract for the purchase of real property between a
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8 property owner and a prospective purchaser. For purposes of this
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9 section, it shall be considered acting as a real estate licensee for
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10 any person, partnership, trust, association or corporation, or the
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11 partners, officers or employees of any partnership, trust,
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12 association or corporation, to engage in the management of an owners
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13 association. However, nothing in this section shall:
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14 1. Prevent any person, partnership, trust, association or
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15 corporation, or the partners, officers or employees of any
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16 partnership, trustees or beneficiaries of any trust, association or
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17 corporation, from acquiring real estate for its own use, nor shall
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18 anything in this section prevent any person, partnership, trust,
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19 association or corporation, or the partners, officers or employees
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20 of any partnership, trustees or beneficiaries of any trust,
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21 association or corporation, as owner, lessor or lessee of real
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22 estate, from selling, renting, leasing, exchanging, or offering to
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23 sell, rent, lease or exchange, any real estate so owned or leased,
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24 or from performing any acts with respect to such real estate when
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 1 such acts are performed in the regular course of, or as an incident
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2 to, the management, ownership or sales of such real estate and the
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3 investment therein; however, it shall be prohibited for any person,
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4 partnership, officers or employees of any partnership, trustees or
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5 beneficiaries of any trust, association or corporation to publicly
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6 market for sale an equitable interest in a contract for the purchase
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7 of real property between a property owner and a prospective
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8 purchaser without holding an active Oklahoma real estate license;
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9 2. Apply to persons acting as the attorney-in-fact for the
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10 owner of any real estate authorizing the final consummation by
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11 performance of any contract for the sale, lease or exchange of such
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12 real estate;
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13 3. In any way prohibit any attorney-at-law from performing the
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14 duties of the attorney as such, nor shall this Code prohibit a
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15 receiver, trustee in bankruptcy, administrator, executor, or his or
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16 her attorney, from performing his or her duties, or any person from
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17 performing any acts under the order of any court, or acting as a
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18 trustee under the terms of any trust, will, agreement or deed of
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19 trust;
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20 4. Apply to any person acting as the resident manager for the
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21 owner or an employee acting as the resident manager for a licensed
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22 real estate broker managing an apartment building, duplex, apartment
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23 complex or court, when such resident manager resides on the premises
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 1 and is engaged in the leasing of property in connection with the
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2 employment of the resident manager;
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3 5. Apply to any person who engages in such activity on behalf
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4 of a corporation or governmental body, to acquire easements, rights-
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5 of-way, leases, permits and licenses, including any and all
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6 amendments thereto, and other similar interests in real estate, for
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7 the purpose of, or facilities related to, transportation,
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8 communication services, cable lines, utilities, pipelines, or oil,
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9 gas, and petroleum products;
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10 6. Apply to any person who engages in such activity in
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11 connection with the acquisition of real estate on behalf of an
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12 entity, public or private, which has the right to acquire the real
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13 estate by eminent domain;
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14 7. Apply to any person who is a resident of an apartment
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15 building, duplex, or apartment complex or court, when the person
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16 receives a resident referral fee. As used in this paragraph, a
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17 "resident referral fee" means a nominal fee not to exceed One
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18 Hundred Dollars ($100.00), offered to a resident for the act of
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19 recommending the property for lease to a family member, friend, or
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20 coworker;
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21 8. Apply to any person or entity managing a transient lodging
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22 facility. For purposes of this paragraph, "transient lodging
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23 facility" means a furnished room or furnished suite of rooms which
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 1 is rented to a person on a daily basis, not as a principal
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2 residence, for a period less than thirty (30) days; or
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3 9. Apply to employees of a licensed real estate broker who
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4 lease residential housing units only to eligible persons who qualify
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5 through a state or federal housing subsidized program to lease the
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6 property in an affordable housing development project. "Affordable
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7 housing development project" means a housing development of four or
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8 more units constructed for lease to specifically eligible persons as
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9 required by the particular federal or state housing program,
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10 including, but not limited to, the U.S. Department of Housing and
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11 Urban Development, the U.S. Department Agriculture Rural
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12 Development, the U.S. Department of Treasury Internal Revenue
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13 Service, or the Oklahoma Housing Finance Agency.
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14 SECTION 3. This act shall become effective November 1, 2024.
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16 59-2-8688 JL 01/03/24
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