©2011 cengage learning. chapter 2 part i: legal descriptions, methods of acquiring title, and deeds...

Chapter 2Part I: Legal Descriptions,

Methods of Acquiring Title, and Deeds

California Real Estate Principles


Chapter 21. List three legal ways to describe and locate

land

2. Outline five legal ways to acquire title to real estate

3. Describe the difference between a grant and quitclaim deed

4. Explain the California Recording System

5. List the most common ways owners hold to real estate


Between Longitude 114 degrees west and 125 degrees west and Latitude 32 degrees north and 42 degrees north in the United States of America in the North American Continent, which is in the northern hemisphere of the planet Earth, which is in the Milky Way, which is in the Galaxy.

WHERE IS THE STATE OF CALIFORNIA? ?


METHODS OF LAND DESCRIPTION

1. Lot, Block and Tract 2. Metes and Bounds 3. U.S. Government

Survey

- Sections- Townships


LOT, BLOCK & TRACT SYSTEMRecorded map = legal description

View Grand Estates, Tract No. 2025, filed May 17, 2000, Map Book No. 23, Page 13, official records of the Sacramento County Recorder’s Office, Sacramento County, California

The legal description of Lot 3 is: Lot 3, Block B, View Grande Estates, Tract No. 2025, filed May 17, 2000, in Map Book No. 23, Page 13, in the official records of the Sacramento County Recorder’s Office, Sacramento County, California

50’50’

50’

50’

50’

50’

150’ 150’1

2 8

93

104

5 11

6

7

12

A B C


METES AND BOUNDSMetes = measurementsBounds = boundariesP. O. B = point of beginning

POB is also the place it endsPrimarily used

with irregularly shaped parcels in rural areas


Metes and Bounds Description

Beginning at a point on the southerly line of O street, 200 ft. westerly of the southwest corner of the intersection of O and 8th streets; running hence due south 300 feet to the northerly line of P street; hence westerly along the northerly line of P street, 100 feet; hence northerly and parallel to the first course, 300 feet, to the southerly line of O street; hence easterly along the southerly line of O street, 100 feet, to the point or place of beginning.


NW

SW

NE

SE©2011 Cengage Learning

Base (parallel) and Meridian (longitude) lines


U. S. Government survey


California Base & Meridian


T4N

T3N

T2N

T1N

T1S

T2S

T3S

T4S

R2E R3E R4ER1WR2WR3WR4W

NORTH

EAST

SOUTH

WEST

Base LinePrincipal Meridian

Initial Point

U.S. GOVERNMENT SURVEY SYSTEM (Locating Townships)


U.S. GOVERNMENT SURVEY SYSTEM (Sections in a Township)


U.S GOVERNMENT SURVEY SYSTEM (Acres in a section)


Section How many acres are contained in The N ½ of the W ½ of the SE ¼ of Section 12, and the N ½ of the S ½ of Section 20 and the N E ¼ of the NE ¼ of the NE ¼ of Section 17?


OR 640 /4 /2 /2 = 40 acres AND = +Of Section 20 = acres 640

Of the S ½ = 640 / 2 = 320

N ½ = 320 / 2 = 160

AND = +OR 640 /2 /2 = 160 acresOf Section 17 = acres 640

Of the NE ¼ = 640 / 4 = 160

Of the NE ¼ = 160 / 4 = 40

NE ¼ = 40 / 4 = 10OR 640 / 4 /4 /4 = 10 acres

TOTAL 210 ACRES

Of Section 12 = acres 640of the S E ¼ = 640/4= 160of the West ½ = 160/2 = 80N ½ = 80/2 = 40


Section test: #1Which is largest?

a) The N ½ of the W ½ of the SE ¼ of Section 12?b) The N ½ of the S ½ of Section 20?c) The NE ¼ of the NE ¼ of the NE ¼ of Section

17?d) All of the above are the same


Section test: #2

How many acres is contained in the following land description?

The N ½ of the W ½ of the SE ¼ of Section 12 and the N ½ of the S ½ of Section 20 and the NE ¼ of the NE ¼ of the NE ¼ of Section 17.

a. 160 acresb. 180 acresc. 200 acresd. 210 acres


Fun with Survey math!

Tract = 24 x 24 mi = 16 townshipsTownship = 6 miles by 6 milesTownship = 36 square milesTownship = 36 sectionsSection = 1 mi x 1 mi = 640 acresAcre = 43,560 square feet


ASSESSOR’S MAP

Assessor’s Map

Book 34

Page 18

Assessor Parcel Numbers shown in circles

Lots 50 through 57 of Tract 2118, filed in Recorded Maps, Book 63, page 39

The tax assessor assigns every parcel of land in the county its own parcel number. For example, the westernmost parcel (Lot 50) in the map would carry the number 0034-018-008, meaning Book 34, Page 18, Parcel 8.

APN

LEGAL©2011 Cengage Learning

5 Ways to Acquire Real Property

1. By will . . . Testate

2. By succession . . . In testate

3. By accession

4. By occupancy

5. By transfer


Title by Succession: Types of Wills Witnessed Will = formal

Witnesses = 2 required

Usually written by an attorney

Codicil = later alterations to the original will Holographic Will = handwritten, dated, signed

(Witness NOT required) Statutory Will = preprinted form, names

administrator, requires 2 witnesses


Title by Succession TermsTestator/trix = person making the will.Testate = decedent died with a will.Intestate = decedent died with NO will.Executor/trix = named in the will. Intestate succession = transfer of property by

the law of succession.Law of succession = court distribution of

decedent’s propertyAdministrator/trix = named by the court.


Title by Succession TermsDevisor = Real Property = Devise = Devisee

Legator = Personal Property = Bequeath = Legatee

Bequest = to leave personal property

Legacy = to leave money $$$

Codicil = later alteration to a will©2011 Cengage Learning

Probate Sale inCalifornia Superior court

Court approves: (1) the last will and testament, (2) executor/trix, (3) broker

Initial offer must be at least 90% of the appraised value. The probate court is petitioned to confirm the sale.

Overbids = 10% of 1st $10,000 + 5% above $10,000

When there are no heirs, the property transfers to the state by escheat.


INTESTATE SUCCESSION

SEPARATE PROPERTYSurviving Spouse or registered domestic partner One Child ½ Spouse ½ ChildSurviving spouse or registered domestic partner Two or More Children 1/3 Spouse 2/3 ChildrenNo spouse or registered domestic partner ChildrenEqual shares too all children

COMMUNITY PROPERTY

All to Surviving Spouse – Children get nothing


RememberRegistered Domestic Partners have rights equal

to husband & wife in California due to Domestic Partnership Law since January 2005.


Title by ACCESSION:Property added to property

1. By WATER Action

a. Accretion – Gradual additionb. Reliction – Uncovered land by

receding waterc. Avulsion – Sudden tearing away

2. By addition

a. tenant abandoned FIXTURE

b. improvements made in error ©2011 Cengage Learning

Title by Occupancy

Abandonment

Adverse PossessionOne person gains ownership of another’s real property by occupying the parcel of land


Adverse Possession1. Open and notorious use

2. Hostile to the owner’s wishes (without permission of owner)

3. Claim of right or color of title

4. Continuous use for 5 years

5. Payment of property taxes paid for 5 consecutive years

NOTE: Cannot obtain on government

land.©2011 Cengage Learning

Title by TransferPrivate grant (deed)

Public grant (patent)

Gift (no compensation)

Public dedication (give land to government

Court action (foreclosure, escheat, eminent domain)


Valid DEED1. In writing

2. Describe parties

3. Competent grantor

4. Capable grantee

5. Property described

6. Granting clause

7. Signed by all grantor(s)

8.Words of Conveyance

9. Grantor acknowledges the content of the document

10. Delivery to grantee

11. Acceptance by grantee


Ownership DEEDS1. GRANT DEED – Implied warranties: (1) property

not previously conveyed (2) free of undisclosed encumbrances. Contains after-acquired title

2. QUITCLAIM DEED – No warranties. Used to remove a cloud on title. Gives all that you have.

3. WARRANTY DEED–Express warranties made, rarely used in California because of grantor liability. It is replaced by title insurance and grant deed

4. GIFT DEED – The consideration is the love and affection


Other DEEDs1. TAX DEED – Tax collector conveys tax sale

property

2. SHERIFF’S DEED – Conveys court foreclosure property for judgment sale.

3. TRUST DEED – Conveys trustee bare, legal title. Property is the collateral/security for the loan/note.

4. TRUSTEE’S DEED – Trustee conveys title to buyer at trustee sale in a foreclosure proceedings.

5. RECONVEYANCE DEED – Transfers back to the trustor the bare, legal title to remove the security interest when the loan is paid off.


RECORDATION

lst 2nd 3rd

The ORDER is by the TIME and DATE of recordation of the document establishes priority

The first to record is the first in right Knowledge of vested interest Party didn’t record, but took possession

Recorded deed gives constructive notice

Unrecorded deed is valid.

Except: (a) knowledge of unrecorded instrument

(b) prior possession of the premises ©2011 Cengage Learning

AcknowledgedCounty Recorder won’t record document

unless notarized

Notary Public acknowledges the signature = verifies the party signed in notary’s presence and person known to the notary

Grantor acknowledges the contents of the document that the form is complete, accurate and ready for recordation


©2011 cengage learning. chapter 2 part i: legal descriptions, methods of acquiring title, and deeds...

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