Land Ownership in Indian Country

Understanding the various forms of Indian land ownership is important for lenders and program participants because program requirements and processing procedures vary depending upon the way land is held. This paragraph summarizes the basic types of land ownership in Indian country. The definitions provided in 1.6 below further clarify the legal aspects of homeownership and identify unique arrangements that exist in Alaska, California and Oklahoma. Differences in requirements and processing instructions, based upon the types of land ownership, are specified throughout this guide.

Defining an Indian Area. An Indian area is the geographic area within which an Indian housing authority or tribe is authorized to provide housing through its power as a governmental entity. This may include land held in trust by the federal government for tribes or individual Native Americans as well as fee simple land within the operating area of the IHA/TDHE or tribe.

b.	Land Held in Trust for Tribes. Tribal trust lands are held in trust for the tribe by the federal government. The Department of the Interior, through the Bureau of Indian Affairs (BIA), administers the federal government’s trust responsibilities.

1.	Tribal trust land cannot be alienated (taken out of trust) or encumbered without BIA approval.

2.	Tribes may lease or otherwise assign portions of the tribal trust land for the use of specific individuals or purposes, but ownership, through the federal trust, remains with the tribe.

3.	Generally, tribal courts, together with BIA, have jurisdiction over key real estate transactions (lien recording, eviction and foreclosure procedures) on tribal trust lands.

c.	Land Held in Trust for Individual(s). Allotted trust land is held in trust by the federal government for individual Native Americans.

1.	Tribes generally have no property interest in allotted trust lands. However, like tribal trust land, allotted trust lands cannot be alienated or encumbered without BIA approval.

2.	Real estate transactions (lien recording, eviction, and foreclosure) are sometimes governed by tribal law but in other areas may be under the jurisdiction of state/local government laws.

d.	Unrestricted (Fee) Land Within Indian Areas. The term "fee title" or "fee simple title" generally denotes land in which the owner has an interest that entitles the owner to dispose of the entire property or various interests in the property without hindrance.

1.	Loans on fee land located in an Indian area are eligible for a Section 184 loan guarantee.

2.	Real estate transactions (lien recording, eviction, and foreclosure) are generally under the jurisdiction of state/local government laws. However, in some areas, fee land within the Indian area may be under the jurisdiction of tribal courts.

Determining the Status of Proposed Home Sites. As a part of the initial application, the land status (tribal trust land, allotted or fee simple) of the proposed home site must be identified by the tribe. Lenders should send the Land Status and Jurisdiction Form found at Appendix 4 to the tribe for signature to document land status and court of jurisdiction.