Okla. Admin. Code § 385:25-1-21

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

Section 385:25-1-21 - Appraisals of surface leases

(a)Form and method. Prior to any property being offered for surface lease, an appraisal for rental purposes on form provided by Commissioners of the Land Office shall be made by appraisers of the Land Office. Appraisals will be made in accordance with Uniform Standard of Professional Appraisal Practices.

(b)Fair market value. The appraisers shall determine the "fair market value" of the property, which term is defined to mean the price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.

(c)Fair market rental value. The appraisers as a part of their appraisal shall determine the "fair market rental value" of the land. For purposes of this section, fair market rental value is the annual price in cash a willing but not obligated tenant would pay, and a willing but not obligated landlord would charge for the same or similar lands for the highest and best legal use of the property, agricultural or commercial.

(1) In determining fair market rental value, the appraisers shall consider the following:

(A) Present land use;

(B) Acres of land in cultivation, pasture, timber and nonproductive;

(C) Soil types and productivity;

(D) Availability of water;

(E) Climatic conditions prevailing in the area for the last ten to twenty years;

(F) Cash rental price of comparable agricultural land; and

(G) Effective cash return on landlord's share of crop rent from comparable agricultural land for the five year period preceding the appraisal.

(2) The appraisers shall reconcile the variables to arrive at their estimation of fair market rental value of the land; provided, that they shall give weighted preference to comparable cash rentals charged on other lands of the same or similar quality in the area.

(d)Appraisal report. Appraisals are public record under the Open Records Act 51 O.S. § 24A.1 et seq. and 64 O.S. 252.

Okla. Admin. Code § 385:25-1-21

Amended at 16 Ok Reg 1451, eff 5-27-99