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1 Printable Lesson Materials Print these materials as a study guide These printable materials allow you to study away from your computer, which many students find beneficial. These materials consist of two parts: graphic summaries of the content and a multiple choice quiz. Graphic Summaries This portion of your printable materials consists of dozens of frames that summarize the content in this lesson. The frames are arranged on the page to make it easy for you to study the material and add your own notes from your textbook or the online course. Quizzes Many students learn best from sets of questions, and this multiple choice quiz allows you to focus your review of the material to important topics Rockwell Institute NE 20th Street Bellevue, WA

2 California Real Estate Law Lesson 11: Legal Descriptions and Recording Introduction This lesson will discuss: methods of land description solving land description problems recording Methods of Land Description Deeds, purchase agreements, etc., should all contain property description. in document or attached as addendum legal description not required, but preferred Legal description: precise description of a parcel of real property that would enable a surveyor to locate its exact boundaries 1

3 Methods of Land Description Three major types of land descriptions: metes and bounds government survey recorded map Methods of Land Description Metes and bounds Metes and bounds method: brought from England; used mostly in eastern U.S. describes a parcel of property by providing starting point and then describing a series of boundaries that allow surveyors to trace outline of property Methods of Land Description Metes and bounds Starting point and boundaries are described by reference to: monuments (natural or man-made objects) directions or courses (compass readings) distances (measured in feet and inches) 2

4 Metes and Bounds Point of beginning Point of beginning: starting point in metes and bounds description always described in reference to monument may be monument itself ( the old oak tree ) or may simply refer to monument ( 200 ft east of old oak tree ) Metes and Bounds Courses and distances Course: direction (compass reading) Distance: measurement (feet and inches) Once point of beginning is established, courses and distances are used to trace boundaries of parcel. Example: north, 100 feet May be described in terms of monument. Example: north, 100 feet more or less, to centerline of Smith Creek Metes and Bounds Courses and distances If course and distance conflict with monument, monument prevails. Example: 100 feet to centerline of Smith Creek centerline of Smith Creek will prevail, even if it s actually 101 feet away 3

5 Metes and Bounds Courses and distances Includes as many courses and distances as needed to describe entire parcel, back to point of beginning. If description doesn t end at point of beginning, it won t describe an enclosed tract. Metes and Bounds Courses and distances Metes and bounds descriptions can be lengthy and/or complicated. monuments and reference points change or disappear often require an actual survey to reestablish boundaries Summary Metes and Bounds Monuments Point of beginning Course Distance 4

6 Methods of Land Description Government survey Government survey system (also called rectangular survey system): more common west of Mississippi describes land by reference to series of grids Government Survey Meridians and base lines Grids are composed of two sets of lines: one set running north/south one set running east/west Each grid identified by: principal meridian: original north/south line established in grid base line: original east/west line established in grid Government Survey Meridians and base lines California has three principal meridians: Humboldt Mt. Diablo San Bernardino Each principal meridian has its own base line. 5

7 Government Survey Meridians and base lines Grid lines run parallel to principal meridian and base line, at intervals of 6 miles. east/west lines called township lines north/south lines called range lines Government Survey Meridians and base lines Township lines divide land into rows called township tiers. Range lines divide land into columns called ranges. Every fourth range line is a guide meridian. Government Survey Townships and sections Township: square of land formed by intersection of range and township tier identified by location with reference to principal meridian and associated baseline 6

8 Government Survey Townships and sections Example: Township located in the fourth tier north of base line and the third range east of the principal meridian would be described as: Township 4 North, Range 3 East or T4N, R3E Government Survey Townships and sections Township 4 North, Range 3 East: Township lines Principal Meridian Range lines R1ER2E R3E R4E 1 st Guide Meridian East 2 nd Correction Line North T4N T3N T2N T1N 1 st Correction Line North 2 nd Guide Meridian East Base Line Government Survey Townships and sections Government survey grids are identical all across U.S., so descriptions must reference: principal meridian county and state Example: complete description might be: T6N, R2E of the Mt. Diablo Meridian, Sacramento County, State of California 7

9 Government Survey Townships and sections Each township is: 36 square miles in size contains 36 sections Government Survey Townships and sections Section: one square mile, or 640 acres numbered from 1-36 Numbering starts in NE corner and snakes back and forth, ending in SE corner. Government Survey Townships and sections Partial sections are referred to as quarter or quarter-quarter sections. 8

10 Government Survey Government lots Government lot: a section of land that is irregular in shape or size (not one-mile square) Due to: large body of water or some other obstacle earth s curvature (convergence of range lines) Government lots are referred to by lot numbers. Summary Government Survey Principal meridian Base line Range lines Guide meridian Township Section Government lot Methods of Land Description Recorded map Recorded map: a method of land description based on a recorded subdivision plat map also known as lot and block method, or maps and plats system most common in metropolitan areas 9

11 Methods of Land Description Recorded map When land is subdivided, surveyor maps out lots and blocks (groups of lots surrounded by streets). subdivision map called plat Methods of Land Description Recorded map Once plat is recorded in county where land is located, a simple reference to numbered lot on plat is adequate legal description. Example: Lot 2, Block 4 of Tract number 455, in the City of Fresno, County of Fresno, State of California, as per map recorded in Book 25, page 92, of maps, in the office of the recorder of said county. Methods of Land Description Other methods of land description If adequate description exists in prior recorded document, a reference to that document may be sufficient. All that land described in the grant deed recorded under recording number in Orange County, California 10

12 Methods of Land Description Other methods of land description Reference to tax assessor s map or survey record may also be sufficient. map/survey must have been recorded in county where land is located Methods of Land Description Other methods of land description Generalized descriptions such as the Hernandez Farm are acceptable, as long as description is adequate to identify exact property. It s always best to use the least ambiguous method of description. Other Methods of Land Description Air lots Some forms of property must be described by both: location on ground location above ground (elevation) Example: condominiums 11

13 Other Methods of Land Description Air lots This type of property is known as air lot. Air lots described using: datums bench marks Other Methods of Land Description Air lots Datum: reference point on earth s surface that has established elevation (usually measured in feet above sea level) Bench mark: subsidiary reference point used to measure elevation in relation to specific datum Other Methods of Land Description Air lots Example: River City Datum is 327 feet above sea level. Bench mark No. 27 is 10 feet above the River City Datum. Surveyor determines that 12th floor of condominium complex is 172 feet above bench mark. Unit 1270 is therefore 182 feet above River City Datum. 12

14 Methods of Land Description Legal descriptions in California California has unique history of land ownership. During 1700s and 1800s, Spain and then Mexico controlled land that eventually became CA. Spanish and Mexican governments made over 800 large land grants, known as ranchos, to private individuals. covered over 10 million acres of most arable, fertile land Methods of Land Description Legal descriptions in California 1848: War between U.S. and Mexico ended with Mexico ceding lands (Treaty of Guadalupe Hidalgo). U.S. agreed to recognize Mexican land rights (ranchos). All remaining land became public domain of U.S. Methods of Land Description Legal descriptions in California Public domain later surveyed using government survey methods. as privately held lands, ranchos excluded from survey only outside boundaries of ranchos delineated on survey maps 13

15 Methods of Land Description Legal descriptions in California Later, as portions of ranchos sold: divided into smaller lots numbered similar to lots on plat map Methods of Land Description Legal descriptions in California These lots aren t on original government survey, so any legal description of land that was once part of a rancho must also reference rancho. Example: That portion of the Rancho Tzabaco, in the City of Windsor, County of Sonoma, State of California, which is the W ½, SW ¼, SW ¼, SE ¼, Sec. 29, T. 10 N., R. 10 W., M.D.B. & M. [Mount Diablo Baseline and Meridian]. Summary Other Methods of Land Description Plat Air lot Datum Bench mark Rancho 14

16 Solving Land Description Problems Problems can stem from: misunderstanding changes in technology passage of time (monuments disappear, rivers move) human error Solving Land Description Problems Typical problems include: incorrect, indefinite, or ambiguous descriptions omission of part of the description adjoining owners who disagree over boundary lines modern surveys that don t match original survey lines Solving Land Description Problems Over years, courts have developed solutions: Reformation Possession Agreement or acquiescence Practical location doctrine Intent of original government surveyor 15

17 Solving Land Description Problems Reformation Error in land description in deed can be cured by having original party issue new deed containing correct information. If transferor cannot (because deceased or can t be found) or will not issue new deed, court can order reformation of deed. Solving Land Description Problems Possession When land description is vague, ownership sometimes determined by looking at possession. Example: Delgado owns property in both Sutter and Yuba counties; both referred to as Delgado Ranch. Delgado conveys the Delgado Ranch to Susan, but doesn t mention which county. Susan took possession of Yuba country property. Her possession makes clear which ranch the deed was referring to. Solving Land Description Problems Acquiescence or agreement Agreed boundary doctrine: if neighbors are uncertain as to true boundary line, new boundary may be established by express or implied agreement boundary becomes binding if parties acquiesce to it for 5 years only applies to situations of true uncertainty (legal record destroyed or lost) 16

18 Solving Land Description Problems Acquiescence or agreement Boundary line agreement: formal solution between cooperating parties (for example, parties agree to build a fence and use it as boundary line) Agreement becomes binding on both parties if put into writing signed and acknowledged like a deed recorded in county where land located contains legal description and survey map Solving Land Description Problems Practical location Doctrine of practical location: when owner of land conveys part of property to another party, marking boundary line with a monument (such as fence or rock wall) If boundary line accepted by parties, it becomes binding on them and subsequent owners. even if boundary different from description in deed Solving Land Description Problems Intent of original government surveyor When modern equipment/survey uncovers mistakes, courts usually try to honor intentions of original government surveyor. method applies only to government survey descriptions 17

19 Summary Solving Land Description Problems Reformation Agreed boundary doctrine Boundary line agreement Doctrine of practical location Recording Recording: system by which instruments affecting ownership or possession of real property are collected and stored in a public place Instrument: written and signed document that transfers title, gives lien, or establishes right or duty in real property Recording Instruments that can be recorded include: deeds land contracts leases exceeding one year tax liens and child support judgments mortgages and deeds of trust subdivision maps easements 18

20 Recording Procedures for recording In general, recorded document must be reproducible and contain original signature be written in English or contain attached courtcertified translation contain the names of all interested parties be signed by owner (if conveyance) contain adequate description of property Document must be recorded in county where land is located. Recording Purpose of recording Recording serves two main purposes: provides future buyers with access to document s contents establishes priority when two or more parties claim competing interest Purpose of Recording Notice Properly recorded instrument provides public with notice of interest established in instrument. Notice: knowledge Two types of notice: actual constructive 19

21 Purpose of Recording Notice Actual notice: person has actual knowledge of fact Example: Max interested in buying property. Listing says roof needs repair. Max has actual notice of roof s condition. Purpose of Recording Notice Constructive notice: legal presumption that person has knowledge of a fact, whether or not he actually does by law, a person has constructive notice of all recorded interests Example: Max buys home without bothering to check record, so he doesn t know about recorded lien. Max is held to have notice of lien, even if he didn t actually know about it. Purpose of Recording Priority Recording instrument helps establish priority of recorded interest. In general, California follows race-notice system. Race-notice: first in time, first in right ; whoever records first, has first priority even if someone actually bought property at earlier date 20

22 Purpose of Recording Priority Race-notice applies if person is bona fide purchaser. Bona fide purchaser: someone who acquired later interest in property paid value for the interest had no notice (actual or constructive) If bona fide purchaser records her interest, she holds superior claim to property. Priority Rules of priority Recording provides constructive notice, but doesn t necessarily determine priority. Priority determined by series of court-applied tests. Priority Rules of priority Courts determine priority of interests by asking four questions: When was each interest created? Did the parties record the documents used to create interest? Did the second party know about the first party s interest? Did the second party pay value for his interest? 21

23 Priority Rules of priority Once court has answers, it applies rules of priority. If there are two competing interests, and neither was recorded, the interest created first prevails. If there are two competing interests, and both were recorded, the interest recorded first prevails. Priority Rules of priority If instrument executed second is recorded first, and party to second instrument had no knowledge of first unrecorded interest, the second party s recorded interest will prevail. applies only if second party paid valuable consideration (bona fide purchaser) if not, unrecorded interest will prevail Summary Recording Notice Actual notice Constructive notice Race-notice Bona fide purchaser 22

24 Legal Aspects of Real Estate Lesson 11 Cumulative Quiz 1. Which would provide the least ambiguous description of a property, for purposes of a deed? A. A legal description B. A reference such as 'all my lands' C. A street address D. A tax assessor's number 2. Which method of legal description makes reference to monuments, courses, and distances? A. Government survey B. Lot and block C. Metes and bounds D. Recorded map 3. Which of the following statements about a metes and bounds description is true? A. A course is the length of a particular boundary B. A monument must be a natural object C. The courses and distances must continue until they return to the point of beginning D. The point of beginning must be a monument 4. Which method of land description uses a series of grids based on fixed survey markers? A. Government survey B. Lot and block C. Metes and bounds D. Recorded map 5. The principal north/south line in a government survey grid is the: A. base line B. principal meridian C. range line D. township line 6. Which of the following is not one of the three principal meridians in California? A. Humboldt B. Mt. Diablo C. San Bernardino D. Willamette 2009 Rockwell Publishing 1

25 7. Which of the following statements is true? A. There are 6 sections in a township B. There are 6 townships in a section C. There are 36 sections in a township D. There are 36 townships in a section 8. A township is formed by the intersection of: A. a township line and a range line B. a township tier and a guide meridian C. a township tier and a principal meridian D. a township tier and a range 9. What is the term for a section that is not precisely one mile square? A. Air lot B. Government lot C. Irregular section D. Rancho 10. Which method of land description makes reference to a plat map that identifies particular lots and blocks within a subdivision by number? A. Government survey B. Metes and bounds C. Recorded map D. Rectangular survey 11. Which type of property is described in relation to a datum as well as its location on the ground, so that its elevation can be established? A. Air lot B. Flag lot C. Government lot D. Rancho 12. Which of the following statements is false? A. Government survey descriptions of property that was once part of a rancho do not need to refer to the rancho by name B. Ranchos have been subdivided over the years C. Ranchos were excluded from the original government survey of California D. Ranchos were land grants made during Spanish and Mexican ownership of California 2009 Rockwell Publishing 2

26 13. The grantor of a deed that incorrectly described a property can clear up the error by issuing a new deed that correctly describes the property. Correcting the problem in this way is referred to as: A. acquiescence B. possession C. practical location D. reformation 14. A neighbor sells half of his property. Prior to the sale, he builds a fence where he believes the new boundary line will be, but its location differs from the boundary stated in the deed's legal description. Both parties accept the fence as the boundary. If a disagreement arises later, what will a court decide? A. Absent a boundary line agreement, the sale of the property will be void B. The property line is halfway between the fence and the legal description's boundary line C. The property line is where the deed says it is D. The property line is where the fence is 15. A deed is recorded in: A. the county where the grantee lives B. the county where the grantor lives C. the county where the property is located D. whatever county the grantee chooses 16. Which of the following is the purpose of recording? A. To give competing lien holders some certainty about the priority of their liens B. To give members of the public access to records showing current and past owners C. To swear before an official witness that the deed was signed voluntarily D. Both A and B 17. Elroy buys a house without checking the public record. Unknown to Elroy, a recorded mechanic's lien was filed against the property. What type of notice regarding this lien is Elroy considered to have? A. Actual notice B. Constructive notice C. Inquiry notice D. Recorded notice 18. Lila sells her property to Ruben on the 1st, sells her property again to Earl on the 3rd, and then flees the country. Earl has no knowledge of Ruben's purchase. Earl records his deed on the 4th, while Ruben records his deed on the 5th. Who has the superior claim to the property? A. Earl B. Lila's heirs C. Ruben D. The court will order the property sold and the proceeds divided between Earl and Ruben 2009 Rockwell Publishing 3

27 19. Lila sells her property to Ruben on the 1st, sells her property again to Earl on the 3rd, and then flees the country. Earl has no knowledge of Ruben's purchase. Neither Earl nor Ruben records his deed. Who has the superior claim to the property? A. Earl B. Lila's heirs C. Ruben D. The court will order the property sold and the proceeds divided between Earl and Ruben 20. Lila sells her property to Ruben on the 1st, sells her property again to Earl on the 3rd, and then flees the country. Earl records his deed on the 4th, while Ruben records his deed on the 5th. Earl knew Lila had already sold the property to Ruben, but went through with the sale anyway. Who has the superior claim to the property? A. Earl B. Lila's heirs C. Ruben D. The court will order the property sold and the proceeds divided between Earl and Ruben 2009 Rockwell Publishing 4

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