How to Buy Abandoned Property in Oklahoma: A Step-by-Step Guide

Looking for a real estate bargain in Oklahoma? Abandoned properties, from crumbling historic homes in Guthrie to vacant lots in Tulsa, offer unique opportunities for investors, DIYers, and first-time buyers. With Oklahoma’s median home price hovering around $198,000 (lower than the national average), these forgotten gems can be snagged for pennies on the dollar through tax auctions, bank negotiations, or legal claims. But tread carefully: buying abandoned property isn’t as simple as “finders keepers.” State laws require meticulous research to dodge pitfalls like hidden liens, squatter disputes, or environmental hazards.

Whether you’re eyeing a fixer-upper in Oklahoma City’s up-and-coming neighborhoods or a rural acreage for homesteading, this guide breaks down Oklahoma’s rules, risks, and rewards. You’ll learn how to legally claim ownership, leverage tax sales, and turn neglected spaces into profitable ventures, all while avoiding costly missteps.

Let’s dig in.

Understand What “Abandoned” Means in Oklahoma

Abandoned properties in Oklahoma are often tax-delinquent, foreclosed, or unclaimed due to various reasons, such as:

• Death of the owner with no heirs stepping forward.
• Extended vacancy, where the owner has moved and stopped paying taxes or the mortgage.
• Natural disasters rendering the property uninhabitable.
• Neglect, including overgrown vegetation, broken windows, or lack of maintenance.
• No legal occupant has claimed ownership or paid taxes for years. Oklahoma does not have a strict statutory definition of abandonment. Instead, courts assess factors like the length of vacancy, unpaid taxes, utility disconnection, and visible neglect.

Keynote: Abandoned property isn’t always “free” or easy to claim. You must follow legal procedures to acquire ownership.

How to Find Abandoned Properties in Oklahoma?

Finding abandoned properties can be a great opportunity for real estate investment, whether in rural areas like Adair County or urban centers like Tulsa and Oklahoma City. Here are the best methods to locate them:

1. County Tax Sales & Delinquent Properties

• Annual Auctions: Oklahoma counties auction tax-delinquent properties every year.
• Where to Find Lists: Contact the county treasurer’s office or check their website (e.g., Oklahoma County Treasurer).
• Example: Tulsa County holds online auctions via Realauction.
• Redemption Period: Owners have two years to repay taxes with interest (up to 18%) before the buyer can claim the deed.

2. County Clerk & Probate Court

• Check the County Clerk’s Office for probate cases where heirs are unknown or unable to claim the property.
• You may be able to file a petition to purchase such properties through the court, especially in rural areas like McCurtain County.

3. Code Enforcement & City Planning Departments

• Cities like Oklahoma City publish lists of derelict properties that have been flagged for violations.
• Contact the Planning Department or Code Enforcement Office for details on properties that may be available.

4. Online Databases & Foreclosure Listings

• Oklahoma Tax Commission and RealtyTrac provide listings of tax-defaulted or foreclosed homes.
• Zillow Foreclosure Center lists bank-owned (REO) properties.

5. Driving Around & Identifying Neglected Homes

• Physically survey neighborhoods for signs of abandonment, such as overgrown yards, broken windows, or uncollected mail.
• This works well in both urban hubs like Tulsa and small towns across Oklahoma.

6. Unclaimed Property Databases

While not directly listing real estate, the Oklahoma State Treasurer’s Unclaimed Property database may help locate property owners or heirs who have abandoned assets.

Pro Tip: Focus on cities like Oklahoma City or Tulsa, where urban renewal programs may offer incentives to buyers.

How to Verify Ownership & Liens Before Buying an Abandoned Property?

Before making an offer on an abandoned property, it’s essential to verify ownership and uncover any legal or financial hurdles. Following these steps can ensure a clear purchase:

1. Conduct a Title Search

• Visit the county clerk’s office (e.g., Cleveland County) to trace the deed history and confirm legal ownership.
• Look for:

1. Mortgages (unpaid home loans)
2. IRS Liens (debts over $10,000 can block your purchase)
3. Judgments (e.g., unpaid contractor bills)

• Cost: Typically $50–$200, depending on the county.

2. Check for Back Taxes

• Oklahoma allows counties to auction tax-delinquent properties.
• Visit the county treasurer’s website to verify any outstanding property taxes before making an offer.

3. Check for Surviving Heirs

• If the previous owner has passed away, unclaimed heirs may have legal rights to the property.
• Use Ancestry.com or hire a skip tracer to locate potential relatives.

4. Hire a Real Estate Attorney

• An attorney can help uncover hidden claims or legal complications, ensuring a smooth transaction.
• They can also assist with clearing title defects and resolving ownership disputes.

5. Inspect for Environmental Hazards

• Abandoned properties may have asbestos, mold, or meth contamination, especially in neglected Oklahoma homes.
• Consider testing before purchasing to avoid costly remediation.

Contacting the Owner & Understanding Adverse Possession in Oklahoma

If you locate an abandoned property, the first step is to determine whether the owner can be contacted. If possible, follow these steps:

1. Contact the Owner (If Reachable)

• Negotiate directly—some owners may be willing to sell at a low price to avoid tax burdens or maintenance costs.
• If the owner is unresponsive, explore legal options such as tax lien sales or, in rare cases, adverse possession (squatter’s rights).

2. Understanding Adverse Possession in Oklahoma

While uncommon, you may be able to claim ownership of an abandoned property through adverse possession, but strict requirements apply:

Requirements:

• Uninterrupted, open, and hostile possession for 15 consecutive years.
• You must live on the property, maintain it, and pay property taxes during this period.
• The occupation must be without the owner’s permission (this makes the claim “hostile”).

Limitations:

• Adverse possession cannot be used against government-owned land.
• It’s more difficult in urban areas (e.g., Tulsa or Oklahoma City) because owners are more likely to monitor and reclaim properties.

While adverse possession is a long and challenging process, negotiating with the owner or participating in tax lien sales is usually a faster and more reliable path to ownership.

How to Bid at Tax Sales in Oklahoma?

Oklahoma holds annual tax lien auctions, typically in August or September, offering a way to invest in real estate at a lower cost. Understanding the difference between tax lien sales and tax deed sales is crucial before bidding.

1. Tax Lien Sales

• You bid on a tax lien certificate, which gives you the right to collect the owed debt + interest (up to 18%).
• If the owner doesn’t pay within 2–3 years, you can petition for a deed and take ownership.

2. Tax Deed Sales

• Instead of a lien, you buy the property outright at auction.
• Example: In an Oklahoma County tax deed auction:

1. The minimum bid equals unpaid taxes + fees.
2. The winning bidder gets the deed immediately (no redemption period).

3. Key Considerations Before Bidding

Research the property thoroughly, some may have:

• Major repair needs
• Environmental hazards (e.g., asbestos, foundation issues)
• Existing liens or legal complications

Pro Tip: Attend a few tax sales as an observer before bidding to learn strategies and avoid costly mistakes.

Purchasing an Abandoned Property Through a Quiet Title Action

If ownership of an abandoned property is unclear—such as when heirs cannot be found—you may need to file a quiet title lawsuit to legally establish ownership.

1. What is a Quiet Title Action?

A quiet title lawsuit is a legal process that removes any disputes over property ownership, allowing you to obtain a clear title.

2. Steps to File a Quiet Title Lawsuit

1. File a Petition

• Submit a quiet title lawsuit to the district court in the county where the property is located.

2. Notify Potential Heirs

• Publish a notice in local newspapers (e.g., The Oklahoman) for three consecutive weeks to inform any possible heirs or claimants.

3. Court Hearing

• If no one contests the claim, the judge will grant you legal ownership of the property.

3. Costs & Considerations

• Legal fees typically range from $1,500–$5,000, depending on the complexity of the case.
• This process is especially useful for abandoned properties with unclear ownership, ensuring a clean title for future resale or development.

By using a quiet title action, you can eliminate disputes and secure full ownership, making it a valuable legal tool for real estate investors.

Buying Foreclosed & REO Properties from Banks

Abandoned homes in foreclosure can often be purchased at a discount by negotiating directly with banks. Here are the best ways to secure a deal:

1. Find Foreclosed & REO Properties

• REO (Real Estate Owned) Listings: Banks sell foreclosed properties below market value after they fail to sell at auction.
• Short Sales: If a homeowner owes more than the property’s value, you may be able to negotiate with the lender to buy it at a discount.
• Where to Search:
  • Bank websites (e.g., Bank of Oklahoma).
  • MLS listings and foreclosure platforms.

2. Negotiation Strategies for REO Properties

Offer Strategy:

• Banks often accept 70–80% of market value for a quick sale.
• Competitive offers with few contingencies are more likely to be accepted.

Key Considerations:

• Properties are sold “as-is”—banks typically won’t cover repairs.
• Conduct a thorough inspection to assess potential costs before making an offer.

By understanding bank-owned property sales, you can negotiate great deals while minimizing risks.

Inspecting & Renovating an Abandoned Property in Oklahoma

Before purchasing an abandoned property, a thorough inspection is essential to avoid unexpected costs and legal issues.

1. Key Areas to Assess

• Structural Integrity: Check the roof, foundation, and walls for major damage.
• Utility Connections: Ensure access to water, electricity, and gas.
• Zoning Restrictions: Rural properties may require septic tanks or wells, so check local regulations.
• Renovation Costs: Budget for repairs, Oklahoma’s average rehab expense is $20–$50 per square foot.

2. Renovation & Resale Considerations

• Permits: Major repairs (e.g., structural changes) require permits from the local Building Services Department.
• Grants & Assistance: Some cities, like Lawton, offer rehab grants for historic homes.

3. Common Repair Costs in Oklahoma

• Roof Replacement: $8,000–$15,000
• HVAC System: $5,000–$10,000

By thoroughly inspecting a property and budgeting for renovations, you can make informed decisions and maximize your investment potential.

Common Pitfalls When Buying Abandoned Properties

Investing in abandoned properties can be rewarding, but there are several risks and challenges to consider. Here’s how to avoid common pitfalls:

1. Hidden Liens & Back Taxes

• Risk: Unpaid HOA fees or IRS liens may transfer to you after purchase.
• Solution: Always verify property taxes using the Oklahoma Tax Commission’s Ad Valorem Tax Lookup to check for any outstanding balances.
• Title Insurance: Consider purchasing title insurance to protect against any future undiscovered liens or claims.

2. Squatters & Eviction

• Risk: If there are squatters on the property, evicting them can take 3–30 days depending on the situation in Oklahoma.
• Solution: File an unlawful detainer lawsuit to legally remove squatters.

3. Market Volatility & Appreciation

• Risk: Rural properties may experience slower market appreciation, making resale more difficult.
• Solution: Carefully research the local market trends before purchasing in less-developed areas.

By being aware of these risks and taking preventative steps, you can safeguard your investment and avoid costly mistakes.

Why Invest in Abandoned Properties in Oklahoma?

Oklahoma offers affordable real estate and investor-friendly laws, making it an attractive market for flippers, landlords, and homesteaders. Here’s why:

1. Low Property Prices & High Potential

• Median Home Value: $198,000 (as of 2023), significantly lower than the national average.
• Abandoned properties can be acquired below market value, creating opportunities for flipping or long-term investment.

2. Low Competition & Rural Opportunities

• Rural areas like Enid and Altus have cheaper properties with less buyer competition.
• These areas can offer high ROI for patient investors willing to wait for market appreciation.

3. Growth Markets: OKC & Tulsa

Oklahoma City and Tulsa are experiencing economic growth, leading to higher demand for flipped homes and rentals.

4. Landowner-Friendly Laws

• No state property tax—only county taxes, which average 0.87% of property value.
• Easier property ownership regulations compared to other states.

By staying diligent, working with professionals, and verifying property details, investors can capitalize on Oklahoma’s real estate opportunities while minimizing risks.

With all the above-mentioned steps, you can confidently navigate Oklahoma’s abandoned property market, avoid costly mistakes, and transform neglected properties into profitable ventures or even your dream home.
For free legal guidance, contact the Oklahoma Bar Association’s Lawyer Referral Service at (800) 522-8065.