Land Parcels: Identification and Description

Chapter 12❓❓: Land Parcels: Identification and Description

This chapter provides a comprehensive overview of land parcel identification and description methods crucial for real estate professionals. We will delve into Legal description❓❓s, surveying techniques, and the factors influencing land utility and value❓.

12.1 Introduction to Land Parcels and Legal Descriptions

Real estate appraisal hinges on the precise definition of the “rights in realty,” which encompasses the legally described space on the Earth’s surface. Understanding how land is identified and described is paramount. The utility of a land parcel directly dictates Its value.❓

• Utility and Value: A parcel in a flood hazard area with restricted development potential has limited utility and, consequently, diminished value. Conversely, a strategically located parcel suitable for commercial use may possess substantial value, barring unforeseen soil instability or environmental contamination.

• Raw Land vs. Site: Raw land, in its undeveloped state (e.g., a farmer’s field), differs significantly from a site that has been improved with utilities, street access, drainage, and other amenities. This distinction translates to substantial cost differences for builders and owners.

The legal description of land is a critical element in any real estate transaction or appraisal. Its primary purpose is to uniquely differentiate one parcel from another, regardless of the improvements present on the land. Even when applying the cost approach or conducting a highest and best use analysis, a thorough understanding of the land’s legal description is essential for determining the site’s value as if vacant.

Key takeaway: Addresses are not definitive or permanent identifiers. The legal description is the authoritative identification.

12.2 Methods of Land Description

Several methods are employed to legally describe land, each with its own historical context and application:

12.2.1 Metes and Bounds System

This system, prevalent in states that were part of the original American colonies, relies on a series of distances and directions from one monument to another.

• Monuments: These can be natural features (creeks, rivers, trees, rocks) or man-made objects (fences, roads, utility poles).

• Point of Beginning (POB): The description must begin at a specific POB. This point should be a known landmark or a point referenced in an adjoining survey.

• Calls: From the POB, the property’s boundary lines, or calls, are defined by their course (direction) and distance (length). Surveyors use angles or bearings to measure direction.

• Closure: A critical requirement is that the description must close. This means that following the defined courses and distances must return to the precise POB. Failure to close renders the description unusable.

Example (Illustrative):

“Beginning at the oak tree on the bank of Muddy Creek (POB); 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.”

Limitations: Monuments, especially natural features, can shift or disappear over time, leading to ambiguities.

12.2.2 Rectangular (Government) Survey System

Adopted by Congress in 1785, the Rectangular Survey System (also known as the Government Survey System) divides land into a grid of rectangles. This system was first applied to the lands acquired through the Louisiana Purchase.

• Principal Meridians and Base Lines: The foundation of the system lies in a set of intersecting lines:

  • Principal Meridians: Run north and south.
  • Base Lines: Run east and west.
    These lines divide the state into easily describable areas.
  • Formula: Let PM represent the Principal Meridian. Then all north/south location lines are defined relative to PM. Similar applies for Base Lines BL.

• Township and Range Lines: To refine the grid for smaller parcels:

  • Township Lines: Run east and west, parallel to base lines, at six-mile intervals.
  • Range Lines: Run north and south, parallel to principal meridians, at six-mile intervals.

The intersection of township and range lines creates squares approximately six miles on each side, called townships.

• Correction Lines and Guide Meridians: Due to the Earth’s curvature, range lines converge towards the North Pole. Correction lines, typically at 24-mile intervals (every fourth township line) north and south of the base line, serve as new base lines to compensate for this convergence.

• Sections: Each township is further subdivided into 36 sections, each approximately one mile square and containing roughly 640 acres.

  • Sections are numbered in a serpentine manner, starting in the northeast corner and ending in the southeast corner.

  • Sections can be further divided into quarter sections, halves, and quarters.

  • Acreage Calculation: 1 section = 640 acres, 1/2 section = 320 acres, 1/4 section = 160 acres, 1/4 of 1/4 section = 40 acres.

  • The formula to calculate total acreage is: Total Acreage = 640 / (Number of subdivisions). For example, NE 1/4 of SW 1/4 has 2 subdivisions so, 640/ (4*4) = 40 acres

Example: The Northwest 1/4 of the Southeast 1/4 of Section 10, Township 2 North, Range 3 West.

Key point: Government survey descriptions are interpreted backwards to determine the parcel’s location and size.

Practical Application: Suppose you need to determine the dimensions of a property described as “the NW 1/4 of the SE 1/4 of Section 10, T2N, R3W.” Each quartering divides the area by four. Starting with a section of 640 acres, dividing it by four (NW 1/4) gives 160 acres. Quartering again (SE 1/4) results in 40 acres.
A section is 1 mile x 1 mile. Dividing by four twice results in the following dimensions;
1/2 mile x 1/2 mile. This section contains 40 acres of land.

12.2.3 Lot and Block System

Commonly used in urban areas, the lot and block system simplifies land description through recorded plats.

• Plats: A developer creates a detailed plat map showing individual lots and blocks within a subdivision.

• Recording: The plat is recorded with the county recorder’s office.

• Simplified Descriptions: Future legal descriptions can simply refer to the lot number and block within❓ the named subdivision.

Example: “Lot 4 in Pleasant Acres Addition, Block 1.”

This system avoids lengthy metes and bounds descriptions.

12.3 Title and Record Data

Besides accurately identifying the subject property, appraisers must research historical market activity within the relevant market area. It is crucial to ensure that the appraisal report pertains to the correct property.

• Ownership Information: Obtain ownership information from county records (auditor or assessor) or directly from property owners (title insurance policy or deed abstract).

• Research Focus: Data gathering should include:

  • History of ownership, recent sales, listings, or options.
  • Existing leases.
  • Easements and rights-of-way.
  • Deed or plat restrictions.
  • Subsurface rights or mineral extraction licenses.

12.4 Zoning and Land Use Information

Thorough investigation of zoning and land use regulations is paramount.

• Sources: Zoning and land use information is available from local planning or zoning departments.

• Areas to investigate:

  • Minimum lot size.
  • Utility availability.
  • Minimum building size.
  • Minimum road frontage.
  • Minimum side yard requirements.

• Compliance categories:

  • Legal Land Use: Researching allowable uses may be straightforward or complex.
  • Development Standards: Addresses lot size, setbacks, and other physical parameters. Non-compliance with development standards does not make the land use illegal.

12.5 Experiment: Creating a Metes and Bounds Description

Objective: To understand the process of creating a simple metes and bounds description.

Materials:
* Graph paper
* Protractor
* Ruler
* Compass

Procedure:
1. Select a Starting Point: Choose a recognizable point on the graph paper to serve as the Point of Beginning (POB).
2. Define a Shape: Decide on a simple polygon shape (e.g., a rectangle or triangle).
3. Assign Courses and Distances:
* Use the protractor to determine a course (bearing) for each side. Note it carefully.
* Use the ruler to measure the distance for each side. Note it carefully.
4. Write the Description: Write out the metes and bounds description, starting with the POB and listing each course and distance. Ensure the final call returns to the POB.
5. Verify Closure: Carefully plot the description back onto the graph paper. Did the shape close accurately, returning to the POB?

Results: Evaluate the accuracy of your description. Any errors in course or distance will prevent the shape from closing properly. This exercise highlights the importance of precision in surveying and legal descriptions.

12.6 Experiment: Converting between Legal Description Systems

Objective: To convert simple land descriptions from one system to another.

Materials:
* Plat map of an area with recorded metes and bounds and lot & block dimensions.
* County record access, if available online.

Procedure:
1. Convert Metes and Bounds to a Lot & Block:
* Select a relatively simple metes and bounds description from county records.
* Analyze the description to determine its location within the existing platted area.
* Identify the corresponding lot and block numbers for the parcel described by the metes and bounds description.
* Document the equivalent Lot & Block description based on the analysis.
2. Convert Lot & Block to Metes and Bounds:
* Select a lot and block description from the plat map.
* Using the plat map or county records, research the corresponding metes and bounds description for the lot and block. This process might involve finding the overall boundaries of the block and then the specific dimensions of the lot within that block.
* Document the equivalent metes and bounds description found in the research.

Results:
* Evaluate the accuracy of the conversions.
* Identify the potential discrepancies and challenges in converting between different legal description systems, which can arise due to inaccuracies in the plat map, historical changes, or variations in how different systems measure land.

12.7 Conclusion

Understanding land parcel identification and description is a fundamental skill for real estate appraisers and other professionals. This chapter has covered essential concepts, techniques, and practical considerations for accurately defining and interpreting legal descriptions, ensuring sound property valuations and informed decision-making.