Title Examination Standards
Chapter 1, App.
Chapter 15. Trusts and Trustees
§15.3. Presence of Words "Trustee," "As Trustee" or "Agent".

1. A. The words "trustee," "as trustee" or "agent" following the name of a grantee or mortgagee, without additional language actually identifying a trust, do not give notice that, or put one on inquiry whether, a trust does exist or any person except the grantee or mortgagee does have a beneficial interest.

   A subsequent conveyance by such grantee, whether or not such grantee's name is followed by such words in the subsequent conveyance, vests title in the conveyee of the subsequent conveyance free of all claims of others. If such grantee making a subsequent conveyance is an individual and the property conveyed could be subject to the right of homestead (see Title Examination Standard 7.1), the subsequent conveyance must also be executed by such grantee's spouse, or must show that such grantee has no spouse, or the trust must be identified so as to make 60 O.S. § 175.45 applicable.

   An assignment or release by such mortgagee, whether such mortgagee's name is followed by such words or not in the assignment or release, vests ownership in the mortgage in the assignee or completely releases the property from the mortgage as to all persons claiming thereunder.

2. B. The presence of the words "trustee" or "as trustee" following a grantee's name in a deed will put the examiner on notice that the real property conveyed is subject to a beneficial interest in a person other than the grantee when written evidence, establishing that an express trust does exist with respect to the property conveyed, is recorded in the office of the county clerk of the county where the property is located. The written evidence may be recorded before or after the grantor's death, so long as it is recorded prior to conveyance of the property by the party who took title "as trustee."

   Authority: 60 O.S. §§ 156-157 & 175.45.

History: The 1985 Report of the Title Examination Standards Committee proposed this standard, 56 0.B.J. 2535, 2541 (1985). It was approved by the Real Property Section, November 14, 1985, and adopted by the House of Delegates, November 15, 1985, 57 0.B.J. 5 (1986).

The 1989 Report of the Title Examination Standards Committee proposed amending Standard 22.3 by denominating the former text of the Standard as section (A) and adding new text as section (B) and a Caveat, 60 O.B.J. 2502, 2518 (1989). The new text reflected 1989 amendments to 60 O.S. §§ 156-157. The amendment was approved by the Real Property Section on November 16, 1989, and adopted by the House of Delegates on November 17, 1989, 60 0.B.J. 2941, 2952 (1989).

The 1995 Report of the Title Examination Standards Committee recommended amending the standard to clarify the place for filing written evidence of an express trust and to improve it grammatically. 66 O.B.J. 3256, 3259 (10/21/95). The Real Property Section approved the Committee's recommendation on November 9, 1995, and the House of Delegates adopted the amendment on November 10, 1995, 66 0.B.J. 3751 (1995).