Which of the following legal description systems relies on Principal Meridians and Base Lines to create a grid system for dividing land?

Chapter Title:

Site Description & Legal Framework

Introduction:

Introduction: Site Description & Legal Framework

The accurate determination of real property value necessitates a comprehensive understanding of the subject site, extending beyond its physical attributes to encompass its legal and regulatory context. This chapter, "Site Description & Legal Framework," provides a foundational exploration of these critical elements, recognizing that the value of a property is inextricably linked to both its tangible characteristics and the intangible constraints imposed by legal and regulatory frameworks. Site description involves the systematic documentation of the land's physical features, including its dimensions, topography, accessibility, and existing improvements. These features directly influence the utility and potential of the site for various uses. Scientifically, the rigorous characterization of site attributes allows for objective comparison with other properties and supports data-driven analyses of market value. Concurrently, a thorough understanding of the legal framework is paramount. This includes identifying the legally permissible uses, restrictions, and encumbrances that govern the property, encompassing elements such as legal descriptions, zoning regulations, land use controls, and historical preservation statutes. This understanding helps determine the scope of permissible property rights, potential legal constraints, and therefore impacts the marketability and value of the site. Ignoring the legal parameters of a site risks producing an inaccurate and unreliable appraisal.
This chapter aims to equip trainees with the necessary knowledge and skills to:

1. Conduct a comprehensive site description, employing standard terminology and measurement techniques to accurately capture the physical characteristics of the property.
2. Interpret legal descriptions of land, including metes and bounds, rectangular survey, and lot and block systems, ensuring accurate identification and delineation of property boundaries.
3. Analyze the impact of zoning regulations, land use controls, and other legal restrictions on the permissible uses and development potential of the site.
4. Identify and assess the influence of easements, rights-of-way, and other encumbrances on property value.
5. Integrate site description and legal analysis into a cohesive framework for informed decision-making in real estate appraisal, facilitating the determination of highest and best use and the development of credible value opinions.

By mastering these principles, trainees will be well-positioned to conduct thorough and defensible appraisals that accurately reflect the complex interplay between a site's physical characteristics and its legal environment.

Topic:

Site Description & Legal Framework

Body:

Chapter: Site Description & Legal Framework

Introduction

This chapter delves into the critical aspects of site description and the legal framework that governs real estate appraisal. A thorough understanding of these elements is fundamental to accurate valuation and informed decision-making in the appraisal process.

1. Site Description: Unveiling the Land's Essence

Site description involves the comprehensive gathering and presentation of factual data concerning the land being appraised. This information forms the foundation for subsequent analysis and valuation.

1.1 Raw Land vs. Site

• Raw Land: Undeveloped land in its natural state, lacking improvements like grading, drainage, utilities, or subdivision.
• Site: Improved land ready for a specific purpose due to the presence of on-site and off-site improvements.

1.2 Essential Components of Site Description

A complete site description includes:

• Factual data related to the site
• Information on land use restrictions
• Legal description
• Other title and record data
• Pertinent physical characteristics

2. Site Analysis: Interpreting the Land's Potential

Site analysis goes beyond mere description; it involves a careful study of factual data in relation to market area characteristics. This analysis aims to determine how these characteristics influence the utility and marketability of a specific site compared to competing sites.

2.1 Objective of Site Analysis

The primary objective is to gather data that indicates the highest and best use of the site as if vacant, enabling the estimation of land value for a specific use.

2.2 Highest and Best Use Determination

Whether valuing a site or raw land, determining and evaluating its highest and best use is crucial.

3. Legal Descriptions: Defining Property Boundaries

Land boundaries delineate separate ownerships, and the land within these boundaries is referred to as a parcel, lot, plot, or tract.

3.1 Importance of Legal Descriptions

A legal description uniquely identifies a property, ensuring it cannot be confused with any other. It is typically included or referenced in an appraisal report.

3.2 Common Methods of Legal Description in the United States

1. Metes and Bounds System: The oldest method, describing property boundaries using precise reference points (metes) and boundary lines (bounds).

   • Starts at the Point of Beginning (POB), tied to a benchmark or adjoining surveys.
   • Proceeds along intermediate reference points, eventually returning to the POB (closing).

   • Practical Application: Commonly used in older states and for irregular parcels.

   • Example: "Beginning at a point on the north side of Elm Street, 100 feet east of the intersection of Elm Street and Oak Street; thence east along the north side of Elm Street 50 feet; thence north 100 feet; thence west 50 feet; thence south 100 feet to the point of beginning."

2. Rectangular Survey System: Established by the Land Ordinance of 1785, also known as the government survey system.

   • Uses a grid system based on Principal Meridians (north-south lines) and Base Lines (east-west lines).

   • Divides land into Townships (6-mile squares) and Sections (1-mile squares).

   • Each section contains 640 acres.
     Acreage calculations: 1 acre = 43,560 sq ft
     Therefore, a quarter section contains 160 acres.

   • Practical Application: Predominant in states north of the Ohio River and west of the Mississippi River.

   • Example: "The Northwest Quarter of the Southwest Quarter of Section 12, Township 2 North, Range 3 East of the Principal Meridian."

   • Area Calculation:
     Area = (Fraction of Section) * (Area of Section)
     Area = (1/4 * 1/4) * 640 acres
     Area = 40 acres

3. Lot and Block System: An outgrowth of the rectangular survey system, used to simplify descriptions of small parcels in subdivided areas.

   • Developers subdivide land into Blocks and assign Lot numbers to individual sites within them.

   • Subdivision maps (plats) are filed with local government to establish a public record.

   • Practical Application: Common in urban and suburban areas with numerous subdivisions.

   • Example: "Lot 5, Block B, of the Meadowbrook Subdivision, as recorded in Plat Book 10, Page 25, of the public records of County."

4. Title and Record Data: Uncovering Ownership and Restrictions

An appraiser should obtain legal descriptions and property data from the client or public sources before on-site inspections.

4.1 Constructive Notice

Public records provide constructive notice, ensuring interested individuals can research and contest deed transfers.

4.2 Sources of Title and Record Data

• County Recorder's Offices: Maintain index books for land deeds and mortgages.
• Municipal Plat Books: Found in the auditor's office.
• Land Registration Systems, Land Data Banks, and Assessor's Maps: Offer useful support data.

4.3 Ownership Information

• Appraisers must understand the type of legal ownership to define property rights.
• They should investigate surface and subsurface rights through title reports or abstracts of title.

4.4 Easements and Restrictions

• Easements: Grant specific rights to others to use a portion of the property (e.g., utility lines, access).
• Restrictions: Limit the use of the property (e.g., building types, business activities).
  • Prescriptive Easement: 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.

5. Zoning and Land Use Information: Navigating Regulations

Land use and development are regulated by city, county, regional, state, and federal controls.

5.1 Zoning Regulations

• Control the height and size of buildings, lot coverage (Floor Area Ratio), landscaping, parking, sign requirements, setbacks, and more.
• Determine "use by right" (permitted uses) and procedures for nonconforming use permits, variances, and zoning changes.

5.2 Legally Nonconforming Use

Applies only to properties that do not conform to allowable land uses, not simply building or developmental standards.

5.3 Zoning Changes

Appraisers must assess the probability of zoning changes if the highest and best use depends on it.

5.4 Sources of Zoning and Land Use Information

• Zoning offices, online records, planning and zoning staff.
• Confirmation from controlling agencies is necessary.

6. Assessment and Tax Information: Understanding the Fiscal Impact

Real property taxes are based on ad valorem assessments. Taxation levels significantly influence a property's potential uses.

6.1 Assessment Practices

• Assessed values may not accurately reflect market value due to mass appraisal techniques.
• Reliability of assessments as market value indicators varies by district.

6.2 Sources of Assessment and Tax Information

Local assessor or tax collector records provide details on assessed value and annual tax burden.

7. Physical Characteristics of Land: Identifying Site Attributes

Appraisers describe and interpret how the physical characteristics of a site influence value and how improvements relate to the site and neighboring properties.

7.1 Key Physical Characteristics

• Site size and shape
• Corner influence
• Plottage potential
• Excess land and surplus land
• Topography
• Utilities
• Site improvements
• Accessibility
• Environment

7.2 Size and Shape Analysis

Describes a site's dimensions (frontage, width, depth) and any advantages or disadvantages caused by these physical characteristics. The effects of size and shape vary with the property's probable use.

Conclusion

A comprehensive understanding of site description and the legal framework is essential for real estate appraisers. By meticulously gathering and analyzing relevant data, appraisers can accurately assess property values and provide informed opinions to clients. This chapter has provided a detailed overview of the key concepts and methods involved in site description and legal analysis, equipping appraisers with the knowledge and tools necessary to excel in their profession.

ملخص:

This chapter, "Site Description & Legal Framework," from a real estate appraisal training course emphasizes the critical role of comprehensive site analysis and understanding the legal context in determining property value.

The core scientific principles covered include:

1. Site Definition & Analysis: Differentiating between "land" (raw, undeveloped) and "site" (improved land ready for specific use). Site analysis involves gathering factual data about the land, its characteristics, and relevant market area information to determine its utility and marketability compared to competing sites. A primary goal is to determine the highest and best use of the site as if vacant, which is essential for land valuation. This includes examining both on-site (e.g., landscaping, driveways) and off-site (e.g., utilities, road access) improvements.

2. Legal Descriptions: Understanding that each parcel of land is unique and requires precise identification through legal descriptions to avoid confusion. The chapter details three common legal description systems used in the United States:

   • Metes and Bounds: The oldest system, using precise reference points and boundary measurements starting from a Point of Beginning (POB) and returning to it (closing). Modern surveying technology like "total stations" and GPS improve accuracy.

   • Rectangular Survey System (Government Survey System): Established using base lines (east-west) and principal meridians (north-south) to define land parcels.

   • Lot and Block System: Developed from the rectangular survey system, where developers subdivide land into numbered lots within blocks, recorded on plats filed with the local government.

3. Title and Record Data: Highlighting the importance of obtaining legal descriptions and property data from clients, public records, and other sources. Public records provide "constructive notice" of documented transactions. Appraisers should also investigate ownership of surface and subsurface rights. Understanding easements (e.g., utility lines, rights of way) and private restrictions (e.g., limitations on building type or business) that affect property value.

4. Zoning and Land Use Information: Emphasizing the need to understand how local (city or county), regional, state, and federal regulations control land use and development through zoning and building codes. Regulations can cover building height/size, lot coverage, landscaping, parking, etc. The chapter distinguishes between uses "by right" and the process for obtaining variances or zoning changes. It covers legally nonconforming uses and development standard and also discusses the need to consider potential changes in zoning regulations and the probability of such changes.

5. Assessment and Tax Information: Explaining that real property taxes are based on ad valorem assessments and that taxation levels significantly influence a property's potential uses. While assessed values may not always directly reflect market value, analyzing assessment and tax trends provides valuable insights.

6. Physical Characteristics of Land: Examining how physical site characteristics influence value. This involves analyzing site size and shape, corner influence, plottage potential, excess/surplus land, topography, utilities, site improvements, accessibility, and environmental factors.

The chapter concludes by emphasizing that thorough site analysis and a strong understanding of the legal framework are essential for accurate real estate appraisal, allowing appraisers to make informed judgments about property value and its potential uses.