Real Estate Essentials: Legal Descriptions & Mobile Appraisal

Chapter 4: Real Estate Essentials: Legal Descriptions & Mobile Appraisal

I. Introduction

A core competency for real estate appraisers is the ability to accurately identify and describe the subject property. This chapter delves into the specifics of legal descriptions, a crucial component of property identification, and how advancements in mobile technology have revolutionized the appraisal process, increasing efficiency and accuracy. Understanding legal descriptions is paramount, ensuring that the appraiser values the correct parcel of land and improvements. Errors in legal descriptions can have significant financial and legal repercussions.

II. Legal Descriptions: Defining Property Boundaries

A legal description is a precise, legally recognized method of identifying a specific parcel of real estate. It provides a definitive way to locate and delineate the boundaries of a property, ensuring that there is no ambiguity regarding its extent. Unlike street addresses, which can change, legal descriptions remain constant and are the foundation for property ownership and transfer.

A. Importance of Legal Descriptions

• Accurate Identification: Ensures the correct property is being appraised, conveyed, or taxed.
• Boundary Determination: Defines the precise limits of ownership, resolving potential disputes.
• Title Assurance: Forms the basis for title insurance, protecting against ownership claims.
• Legal Validity: Required in deeds, mortgages, and other legal documents to ensure enforceability.

B. Methods of Legal Description

Several methods are employed to create legal descriptions, each with its own principles and applications. The most common methods include:

1. Metes and Bounds:

   • Definition: This method uses distances (metes) and directions (bounds) to trace the perimeter of a property. It starts at a designated point of beginning (POB) and follows a series of courses (directions) and distances until it returns to the POB, creating a closed polygon.
   • Scientific Principles: Metes and bounds descriptions rely on principles of trigonometry and geometry to accurately define angles and distances.
   • Practical Application: Commonly used in older areas and irregular-shaped parcels.

   • Mathematical Representation:

     • Bearing: An angle measured clockwise or counterclockwise from North or South. Expressed as N/S xx° E/W.
     • Distance: Measured in feet, rods, chains, or other units.

     • Example: “Beginning at a point on the north side of Elm Street, 100 feet east of the intersection of Elm Street and Oak Avenue; thence North 20° East 200 feet; thence East 100 feet; thence South 20° West 200 feet; thence West 100 feet to the point of beginning.”

     • Closure Error: In surveying, closure error is the difference between the calculated position of the point of closure and the actual starting point❓❓❓ of the survey. This error can arise from measurement inaccuracies, instrument errors, and environmental factors. The goal of a surveyor is to minimize this error to ensure the accuracy of the land boundaries.

2. Rectangular Survey System (Government Survey System):

   • Definition: Divides land into a grid system based on principal meridians (north-south lines) and base lines (east-west lines). Townships, each six miles square, are formed by township lines (running east-west) and range lines (running north-south). Townships are further divided into 36 sections, each one mile square.
   • Scientific Principles: Employs geometric principles of squares and rectangles.
   • Practical Application: Predominantly used in the United States, particularly in the Midwest and West.

   • Components:

     • Principal Meridian: A north-south reference line.
     • Base Line: An east-west reference line.
     • Township: A square area of land, six miles on each side, containing 36 sections.
     • Range: A vertical row of townships.
     • Section: A square area of land, one mile on each side, containing 640 acres.
     • Aliquot Parts: Fractions of a section (e.g., half-section, quarter-section).

   • Mathematical Representation:

     • Area Calculation: 1 section = 640 acres; 1 acre = 43,560 square feet.
     • Example: “The NW 1/4 of the SW 1/4 of Section 20, Township 3 North, Range 2 East of the Principal Meridian.”
     • Area = (1/4) * (1/4) * 640 acres = 40 acres.

3. Lot and Block System (Recorded Plat System):

   • Definition: Used in subdivisions where a large parcel of land is divided into individual lots and blocks. A plat map, showing the layout of the subdivision, is recorded in the county recorder’s office. Legal descriptions reference the lot number, block number, and the recorded plat.
   • Practical Application: Commonly used in urban and suburban areas.

   • Mathematical Representation:

     • Area Calculation: Lot dimensions are shown on the plat map, allowing for area calculation using geometric formulas.

     • Example: “Lot 12, Block B, of Sunny Acres Subdivision, as recorded in Plat Book 45, Page 22, of the Official Records of Anytown County.”

     • Zoning Regulations: Zoning regulations are often referenced in conjunction with lot and block descriptions. These regulations govern land use, density, and building requirements within specific zones. Understanding zoning regulations is crucial for determining the permissible uses and development potential of a property.

C. Interpreting Legal Descriptions

Understanding and interpreting legal descriptions requires careful attention to detail and a working knowledge of surveying principles. Appraisers must be able to accurately trace property boundaries based on the description provided. Software and online tools can aid in visualizing these descriptions.

D. Errors and Omissions

Errors in legal descriptions can lead to title disputes, boundary conflicts, and inaccurate appraisals. Appraisers must verify the accuracy of legal descriptions and consult with surveyors or title companies if discrepancies are suspected.

III. Mobile Appraisal Technology: Revolutionizing the Process

Mobile technology has dramatically transformed the real estate appraisal industry, increasing efficiency, accuracy, and data accessibility. Mobile apps, cloud-based platforms, and digital tools have streamlined various aspects of the appraisal process, from property inspection to report generation.

A. Key Mobile Technologies in Appraisal

1. Mobile Appraisal Apps:

   • Features: Data collection, property inspection checklists, photo documentation, sketch tools, comparable sales data access, automated report generation.
   • Benefits: Streamlined workflow, reduced paperwork, improved data accuracy, faster turnaround times.
   • Scientific Principles: Applications leverage GPS for location accuracy and image processing for efficient photo management.
   • Example: An appraiser uses a mobile app to collect property data, take photos, and create a preliminary sketch of the property during the inspection. The app automatically uploads the data to a cloud-based platform for further analysis and report generation.

2. Cloud-Based Platforms:

   • Features: Centralized data storage, collaboration tools, data analytics, report management, compliance tracking.
   • Benefits: Enhanced data security, improved collaboration, real-time data access, reduced storage costs.
   • Scientific Principles: Cloud computing leverages distributed computing principles to provide scalable and reliable data storage and processing.
   • Example: An appraisal firm uses a cloud-based platform to manage all appraisal data, reports, and client communications. Appraisers can access data from anywhere with an internet connection, improving collaboration and efficiency.

3. Digital Measurement Tools:

   • Features: Laser measuring devices, distance meters, electronic levels, drone imagery.
   • Benefits: Accurate measurements, reduced human error, faster data collection, comprehensive property documentation.

   • Scientific Principles: Laser measuring devices utilize the time-of-flight principle (TOF) to determine distances by measuring the time it takes for a laser pulse to travel to a target and back.

     • TOF Equation: d = (c * t) / 2, where d is the distance, c is the speed of light, and t is the time of flight.
       • Example: An appraiser uses a laser measuring device to quickly and accurately measure the dimensions of a building, reducing the time spent on manual measurements and minimizing the risk of errors.

4. Geographic Information Systems (GIS):

   • Features: Mapping tools, spatial analysis, data visualization, property data integration.
   • Benefits: Enhanced location analysis❓, improved property valuation, better understanding of neighborhood characteristics.
   • Scientific Principles: GIS integrates spatial data (location) with attribute data (property characteristics) to create maps and perform spatial analysis.
   • Example: An appraiser uses GIS to analyze the location of comparable sales relative to the subject property, considering factors such as proximity to amenities, schools, and transportation. This analysis helps the appraiser to make more informed adjustments in the sales comparison approach.

5. Drones:

   • Features: Aerial photography, videography, 3D modeling, roof inspection.
   • Benefits: Safer and more efficient property inspections, comprehensive documentation, detailed property views.
   • Scientific Principles: Drones utilize principles of aerodynamics, navigation, and image processing to capture aerial data.
   • Example: An appraiser uses a drone to inspect the roof of a property without having to physically climb onto the roof. The drone captures high-resolution images and videos, allowing the appraiser to identify potential issues such as leaks or damage.

B. Impact on Appraisal Accuracy

Mobile technology reduces errors and increases appraisal accuracy. Data collection is more consistent, measurements are more precise, and data analysis is more comprehensive. Automated report generation minimizes the risk of transcription errors and ensures compliance with appraisal standards.

C. Challenges and Considerations

• Data Security: protecting sensitive property data❓❓ is critical. Appraisers must use secure platforms and adhere to data privacy regulations.
• Technology Proficiency: Appraisers must be trained on the proper use of mobile technologies.
• Regulatory Compliance: Ensure that mobile appraisal practices comply with USPAP (Uniform Standards of Professional Appraisal Practice) and other relevant regulations.
• Cost: Some mobile technologies can be expensive to implement. Appraisers must weigh the costs against the benefits.

D. Future Trends

The future of mobile appraisal technology is likely to include:

• Artificial Intelligence (AI): AI-powered appraisal tools that can automate tasks such as property valuation and report review.
• Blockchain Technology: Secure and transparent data storage and transfer for appraisal records.
• Virtual Reality (VR): Virtual property tours that allow appraisers to inspect properties remotely.
• Internet of Things (IoT): Integration with smart home devices to collect real-time property data.

IV. Practical Applications and Experiments

A. Experiment: Legal Description Verification

1. Objective: To verify the accuracy of a legal description using online tools and surveying principles.

2. Procedure:

   • Obtain a legal description for a property.
   • Use online mapping tools (e.g., Google Maps, county GIS websites) to plot the boundaries of the property based on the legal description.
   • Compare the plotted boundaries with the actual property boundaries.
   • Identify any discrepancies and investigate the potential causes.

3. Analysis: This experiment demonstrates the importance of verifying legal descriptions and highlights the potential for errors.

B. Case Study: Mobile Appraisal Workflow

1. Scenario: An appraiser is tasked with appraising a residential property in a rural area.

2. Mobile Technology Used:

   • Mobile appraisal app for data collection and report generation.
   • Laser measuring device for accurate measurements.
   • Drone for aerial photography and roof inspection.
   • GIS for location analysis and comparable sales data.

3. Workflow:

   • The appraiser uses the mobile app to collect property data, take photos, and create a preliminary sketch of the property.
   • The appraiser uses the laser measuring device to accurately measure the dimensions of the building.
   • The appraiser uses the drone to capture aerial photos and inspect the roof of the property.
   • The appraiser uses GIS to analyze the location of comparable sales and assess neighborhood characteristics.
   • The appraiser uses the mobile app to generate a complete appraisal report.

4. Results: The use of mobile technology significantly reduced the time spent on the appraisal and improved the accuracy of the data collected.

V. Conclusion

Understanding legal descriptions and leveraging mobile appraisal technology are essential skills for real estate appraisers. Accurate property identification and efficient data collection are crucial for producing reliable and defensible appraisals. As technology continues to evolve, appraisers must stay abreast of the latest advancements and adapt their practices to remain competitive and provide value to their clients.