Title Examination Standards
Chapter 1, App.
Chapter 15. Trusts and Trustees
§15.1. Powers of Trustee.

The trustee of an express trust has the power to grant, deed, convey, lease, grant easements upon, otherwise encumber and execute assignments or releases with respect to the real property or interest therein which is subject to the trust. A trustee's act is binding upon the trust and all beneficiaries thereof, in favor of all purchasers or encumbrancers without actual knowledge of restrictions or limitations upon the trustee's powers by the terms of the trust, and without constructive knowledge imposed by the trust instrument containing restrictions and limitations having been recorded in the county where the real estate is located.

Authority: 60 O.S. §§ 171 et seq., 175.7 & 175.45; and see 60 O.S. § 175.24 for a listing of the extensive powers which a trustee has unless they have been denied to the trustee by the trust agreement or a subsequent order of a court; Cox v. Broadway, Inc., 708 P.2d 1087 (Okla. 1985); In re Baumgardner, 711 P.2d 92 (Okla. 1985); Morris v. Meacham, 718 P.2d 1355 (Okla. 1986).

Comment: In a declaration of legislative intent enacted as part of the legislation, it is said that trusts are private instruments and therefore need not be recorded unless the trustor desires to put the public on notice of restriction on the trustee's powers.

History: The standard was proposed as "Standard 22.2" in the 1983 Report of the Title Examination Standards Committee, see Report, 54 O.B.J. 2379 at 2384 (1983). It was renumbered "22.1" by the Real Property Section prior to the Section's approval of the standard after the Section referred the proposed "Standard 22.1" back to the Committee, November 3, 1983. It was adopted as renumbered by the House of Delegates, November 4, 1983.

The report of 1987 Title Examination Standards Committee recommended amendment of the first sentence to refine the statement of the trustee's powers. In the second sentence, the deletion of the words "done after October 1, 1979" (the effective date of an amendment to 60 O.S. 175.45) was recommended, and language relating to notice was to be refined. It was further recommended that additional statutory and case citations be added to "Authority". These changes were approved by the Real Property Section, November 12, 1987, and adopted by the House of Delegates on November 13,1987.

Adopted and Revised by the House of Delegates of the Oklahoma Bar Association November 7, 1997.