Which physical site characteristic involves assessing the land's slope, elevation, and drainage patterns?

Land Records and Site Identification

Introduction: Land Records and Site Identification

Land records and site identification form the bedrock of real estate valuation and appraisal. This chapter delves into the crucial role of systematically documenting and precisely identifying land parcels, a process essential for establishing clear property rights, facilitating land transactions, and supporting informed decision-making in land valuation. From a scientific perspective, the accurate and reliable identification of land parcels is fundamental to spatial data infrastructure and geographic information systems (GIS). Errors in land records or imprecise site identification can cascade through the entire valuation process, leading to inaccurate assessments, legal disputes, and inefficient land management. The establishment and maintenance of comprehensive land records involve a multidisciplinary approach, integrating surveying principles, legal frameworks, and data management techniques. The rectangular survey system and lot and block systems are critical methods for dividing and describing land. Understanding these methodologies is vital for anyone involved in real estate. This chapter will systematically explore the components of land records, encompassing legal descriptions, ownership information, zoning regulations, and physical site characteristics. We will examine the sources of these data, including public records offices, land registration systems, and assessors' maps, while emphasizing the importance of verifying data accuracy and completeness.

The scientific importance of this topic lies in its direct impact on the accuracy and reliability of land valuation, which subsequently influences resource allocation, investment decisions, and economic development. This chapter emphasizes the critical need for a systematic, data-driven approach to site identification and the interpretation of land records.

The educational goals of this chapter are to equip the student with the knowledge and skills necessary to:

• Accurately interpret and utilize legal descriptions found in land records.
• Identify and access relevant data sources for site identification and property information.
• Understand the impact of ownership rights, easements, and restrictions on land value.
• Analyze zoning and land use regulations and their implications for property valuation.
• Evaluate the physical characteristics of land and their influence on site value and potential use.
• Apply these principles to real-world scenarios, ensuring accurate and defensible land valuations.

Land Records and Site Identification

Land Records and Site Identification

Introduction

This chapter provides a comprehensive overview of land records and their critical role in site identification and valuation. A thorough understanding of land records is fundamental for accurately identifying property boundaries, ownership rights, and encumbrances. This knowledge is essential for appraisers, real estate professionals, and anyone involved in land transactions.

1. Land Records Systems

   1. 1 Rectangular Survey System (Government Survey System)

      • A system employed in many parts of the United States to standardize land descriptions.
      • Based on a grid system using principal meridians (north-south lines) and base lines (east-west lines).
      • Townships: Six-mile square units formed by township lines (parallel to base lines) and range lines (parallel to principal meridians).
      • Sections: Each township is divided into 36 sections, each approximately one mile square.
      • Description: A parcel is described by its location within a section, township, and range.
      • Example: The southeast quarter of the northwest quarter of Section 10, Township 2 North, Range 3 East (SE 1/4, NW 1/4, Sec. 10, T2N, R3E).

      • Mathematical Representation: Area of a section can be expressed as:

        • Area_section = (1 mile)^2 = (5280 feet)^2 ≈ 27,878,400 sq ft

   2. 2 Lot and Block System (Recorded Plat System)

      • Used primarily in urban and suburban areas for subdivided land.
      • A plat map (subdivision map) is recorded in the public records, showing the division of land into lots and blocks.
      • Each lot is identified by a number or letter within a specific block.
      • Description: A parcel is described by its lot number, block number, subdivision name, and recording information (e.g., book and page number).
      • Example: Lot 3, Block B, Pleasant Valley Subdivision, recorded in Plat Book 12, Page 45, Anytown County.
      • Application: Applying the lot and block system to old, unsurveyed communities helped to identify each owner’s site or parcel of land.
      • Establishing lot lines: Lot lines were established by agreement among property owners
      • A precise, measured description was established for each lot and each was given a number or letter that could be referred to in routine transactions.

   3. 3 Metes and Bounds System

      • A system that describes land by specifying its boundaries using distances (metes) and directions (bounds).
      • Starts at a designated "point of beginning" (POB) and follows the property lines, using landmarks (natural or artificial) as reference points.
      • Description: A parcel is described by sequentially listing the metes and bounds, returning to the POB to close the description.
      • Example: Beginning at a point marked by an iron stake at the intersection of Main Street and Oak Avenue; thence North 45 degrees East 200 feet; thence South 45 degrees East 150 feet; thence South 45 degrees West 200 feet; thence North 45 degrees West 150 feet to the point of beginning.
      • Mathematical Considerations: Calculating area requires trigonometric functions and geometric formulas (e.g., using the surveyor's formula or coordinate geometry).
      • Surveyor’s formula:
        Area = 0.5 * |Σ(xi * yi+1 - xi+1 * yi)| where (xi, yi) are the coordinates of the vertices.

2. Accessing and Interpreting Land Records

   1. 1 Public Records
      • Deeds, mortgages, plats, and other documents are typically recorded in the county recorder's office or a similar local government agency.
      • Accessibility of public records is legally known as constructive notice.
      • These records are public information and can be accessed by anyone.
      • Many jurisdictions are making land records available online, improving accessibility.
      • Index books for land deeds and land mortgages may be found.
      • Official municipal plat books may be examined in the auditor’s office.

   2. 2 Title Search and Abstract of Title

      • A title search is an examination of public records to determine the ownership history of a property and identify any encumbrances.
      • An abstract of title is a summary of the title search, providing a chronological record of all documents affecting the property.
      • Useful support data can be found in land registration systems, land data banks, and assessors’ maps.

   3. 3 Title Insurance

      • Title insurance protects against losses arising from defects in title, such as errors in public records, undisclosed liens, or fraud.
      • A title commitment is issued before the policy, outlining the conditions and exceptions to coverage.

3. Property Rights and Encumbrances

   1. 1 Fee Simple Interest

      • The most complete form of ownership, granting the owner full rights to possess, use, and dispose of the property.
      • If a partial interest in a property is to be appraised rather than the fee simple interest, the elements of title that are to be excluded should be indicated and carefully analyzed.

   2. 2 Easements

      • A right granted to a third party to use a portion of another person's property for a specific purpose.
      • Examples: Easements for access, utilities, or conservation.
      • Easements may provide for overhead and underground electrical transmission lines, underground sewers or tunnels, flowage, aviation routes, roads, walkways, and open space.
      • Appraisers should search diligently for information pertaining to any limitations on ownership rights.
      • Appraisers are typically not experts in title information but must rely on legal opinions, title research reports, and title data provided by other professionals.
      • Easements, rights of way, and private and public restrictions often affect property value.
      • Prescriptive Easements: Use of a property for access without the owner’s written permission may give the user a prescriptive easement across the property.
      • This type of easement usually must be used for several years without being contested or challenged by the property owner.

   3. 3 Liens

      • A legal claim against a property to secure a debt or obligation.
      • Examples: Mortgages, mechanic's liens, tax liens.

   4. 4 Restrictions

      • Limitations on the use of property imposed by deed restrictions, covenants, or zoning regulations.
      • Private restrictions may have a material impact upon the value of property.
      • Restrictions cited in the deed may limit the type of building or business that may be conducted on the property.
      • Examples of Restrictions: A restriction that prohibits the sale of alcohol or gasoline in a certain place, limiting further subdivision of a tract while others may proscribe certain uses (e.g., commercial or multifamily).
      • Appraisers should carefully consider the value impact, if any, of such restrictions.

   5. 5 Mineral Rights, Water Rights, and Air Rights

      • Separate ownership interests in the resources associated with a property.
      • Appraisers should also investigate the ownership of surface and subsurface rights through a title report, an abstract of title, or other documentary evidence of the property rights to be appraised.
      • Title data indicates easements and restrictions, which may limit the use of the property, as well as special rights such as air rights, water rights, mineral rights, obligations for lateral support, and easements for common walls.

4. Zoning and Land Use Regulations

   1. 1 Zoning Ordinances

      • Local government regulations that control the use of land, density of development, and building design.
      • Zoning calls for a general use (such as residential, commercial, or industrial) and then specifies a type or density of use.
      • Components: Zoning regulations typically specify permitted uses, building height limits, setback requirements, parking requirements, and landscaping requirements.
      • Most zoning ordinances identify and define the uses to which a property may be put without reservation or recourse to legal intervention (use by right).

   2. 2 Nonconforming Uses

      • A use that was legally established before the current zoning regulations but does not conform to the current regulations.
      • Includes improvements that conform to land use regulations but do not meet building or developmental standards.
      • Example: A property with a 30-foot setback in an area where the new zoning code specifies a minimum 40-foot setback. The land use is conforming, but the property does not conform to development standards.

   3. 3 Variances and Special Use Permits

      • A variance is an exception to the zoning regulations granted in cases of hardship.
      • A special use permit allows a use that is not typically permitted in a particular zone, subject to certain conditions.

      • Zoning and other land use regulations often control the following:

        • Height and size of buildings
        • Lot coverage or floor area ratio (FAR)
        • Required landscaping or open space
        • Number of units allowed
        • Parking requirements
        • Sign requirements or limitations
        • Building setbacks
        • Plan lines for future street widenings
        • Other factors of importance to the highest and best use of the site

   4. 4 Impact of Zoning on Value

      • Zoning regulations can significantly affect property value by limiting the potential uses of the land.
      • Potential changes in government regulations must also be considered.
      • An appraiser must consider the current regulations and the likelihood of a change in the code.

   5. 5 Probability of Zoning Change

      • One of the criteria for the highest and best use conclusion is that the use must be legally permissible.
      • If the highest and best use of a site is predicated on a zoning change, an appraiser must investigate the probability that such a change will occur.
      • The appraiser may interview planning and zoning staff and study patterns of zoning change to assess the likelihood of a change.

5. Assessment and Tax Information

   1. 1 Ad Valorem Taxes

      • Property taxes based on the assessed value of the property.
      • Real property taxes in all jurisdictions are based on ad valorem assessments, at least in part.
      • Taxation levels are significant in considering a property’s potential uses.

   2. 2 Assessment Ratios

      • The ratio of assessed value to market value.
      • Assessed values may not be good indicators of the market value of individual properties because mass appraisals based on statistical methodology tend to equalize the application of taxes to achieve parity among assessment levels in a given district.
      • Nevertheless, in some areas and for some property types, assessed value may approximate market value.

   3. 3 Tax Rates

      • The rate at which property taxes are levied, expressed as a percentage of the assessed value or in mills (dollars per thousand dollars of assessed value).
      • From the present assessment, the current tax rate, and a review of previous tax rates, an appraiser can form a conclusion about future trends in property taxation.

   4. 4 Impact of Taxes on Value

      • Property taxes are a significant expense that can affect the profitability of a property and its market value.

6. Physical Characteristics of Land and Site Identification

   1. 1 Site Size and Shape

      • Analysis describes a site’s dimensions (street frontage, width, and depth) and lists any advantages or disadvantages caused by these physical characteristics.
      • Special attention is given to any characteristics that are unusual for the neighborhood.
      • Frontage is the measured footage of a site that abuts a street, lake or river, railroad, or other feature recognized by the market.
      • Example: A triangular lot may not have the same utility as a rectangular lot due to its size and shape.
      • Mathematical Representation: Area calculations are fundamental for determining site size.
      • Area_rectangle = Length * Width
      • Area_triangle = 0.5 * Base * Height
      • Area_circle = π * r^2 (where r is the radius)

   2. 2 Corner Influence

      • Properties with frontage on two or more streets may have a higher or lower unit value than neighboring properties with frontage on only one street.
      • Advantage of easier access to corner sites may be diminished by a loss of privacy or a loss of utility due to setback requirements.
      • For residential properties, corner locations may have negative implications. Quiet, cul-de-sac sites in the interior of a subdivision may be more desirable and command higher prices.
      • The determination can change depending on the use (or uses) anticipated for the site.

   3. 3 Plottage Potential

      • An increment of value that results when two or more sites are combined to produce a larger site with greater utility and probably a different highest and best use.
      • Plottage is significant in appraising agricultural land. Properties of less-than-optimum size have lower unit values because they cannot support the modern equipment needed to produce maximum profits.
      • Plottage value may also apply to an existing site of a special size or shape that has greater utility than more conventional, smaller lots.

   4. 4 Excess Land and Surplus Land

      • Excess land is land that is not needed to support the highest and best use of the site. It has the potential to be sold separately and has its own highest and best use.
      • Surplus land is land that is not currently needed to support the existing use of the site, but it cannot be separated from the site and has no independent highest and best use.
      • Optimal Site Configuration: A given land use has an optimum parcel size, configuration, and land-to-building ratio.
      • The portion of the property that represents an optimal site for the existing improvements will reflect a typical land-to-building ratio.

   5. 5 Topography

      • The slope and elevation of the land, which can affect its suitability for development and its drainage characteristics.
      • Topography analysis involves assessing the land's slope, elevation, and drainage patterns.

   6. 6 Utilities

      • The availability of essential services such as water, sewer, electricity, and gas.
      • Adequate utility infrastructure is essential for most types of development.

   7. 7 Site Improvements

      • Any physical enhancements to the land, such as landscaping, paving, or fencing.
      • Site improvements can increase the value and utility of the property.

   8. 8 Accessibility

      • The ease with which people and goods can access the property, considering factors such as road access, proximity to transportation infrastructure, and traffic congestion.

   9. 9 Environmental Considerations

      • The presence of environmental hazards, such as contaminated soil or wetlands, which can affect property value and require remediation.

Conclusion

Land records and site identification are fundamental components of real estate valuation. A thorough understanding of land record systems, property rights, zoning regulations, and physical site characteristics is essential for accurately assessing property value and making informed real estate decisions. This chapter has provided a comprehensive overview of these topics, equipping the reader with the knowledge and tools necessary to navigate the complexities of land records and site identification.

Scientific Summary: Land Records and Site Identification

This chapter from "Land Records and Valuation: A Comprehensive Guide" focuses on the crucial role of land records and site identification in real estate appraisal. It highlights the scientific foundations of accurate property description, emphasizing the need for appraisers to understand and utilize various methods for site identification, legal descriptions, and property rights analysis.

Main Scientific Points:

1. Importance of Accurate Land Records: Publicly accessible land records (deeds, mortgages, plats) provide constructive notice of ownership, enabling appraisers and other interested parties to research and verify property information.

2. Site Identification Systems: The chapter details common land identification systems, including the rectangular survey system (township/range/section) and the lot and block system, essential for precisely locating and describing properties.

3. Legal Descriptions: Appraisers must obtain and interpret legal descriptions to accurately define the property being appraised.

4. Property Rights: Understanding different types of ownership (fee simple vs. partial interest) and identifying any excluded rights (surface, subsurface, air, water, mineral) is crucial for accurate valuation. Easements (overhead/underground utilities, access) and private restrictions (deed restrictions) significantly impact property value and use. Unrecorded prescriptive easements may exist.

5. Zoning and Land Use Regulations: Zoning ordinances (residential, commercial, industrial) and building codes dictate permissible uses, building height/size, lot coverage, landscaping, parking, and other factors affecting highest and best use. Appraisers must consider current zoning, potential zoning changes, and legally nonconforming uses.

6. Assessment and Tax Information: While assessed values may not always reflect market value, tax records provide insights into a property's tax burden and potential future trends in property taxation.

7. Physical Site Characteristics: Key physical characteristics influencing value include site size and shape, corner influence, plottage potential, excess/surplus land, topography, utilities, site improvements, accessibility, and environmental conditions. Size is measured in acres or square feet. Frontage (street, lake, river) is also important.

8. Corner Influence: Corner lots may have higher or lower value depending on use due to access, visibility, privacy, and setback differences.

9. Plottage: Assemblage of adjacent parcels may yield plottage value if combined use is more valuable.

10. Excess and Surplus Land: Excess land may be separated and has market value, while surplus land does not contribute to value.

Conclusions:

• Accurate and comprehensive land records and site identification are fundamental to sound real estate appraisal.
• Appraisers must possess a thorough understanding of legal descriptions, property rights, zoning regulations, and physical site characteristics to provide credible value opinions.

Implications:

• Failure to properly research and analyze land records and site characteristics can lead to inaccurate valuations, potentially resulting in financial losses for clients.
• This knowledge is crucial for determining highest and best use, selecting comparable properties, and developing credible appraisal reports.
• Appraisers should utilize available resources, including public records, land registration systems, assessors' maps, and consultations with zoning officials and legal professionals, to ensure the accuracy and completeness of their analyses.