Land Description: Legal Aspects & Influences

Chapter: Land Description: Legal Aspects & Influences

Introduction

Real estate valuation hinges on accurately defining the property❓ rights being appraised. This definition relies heavily on the legal description, a precise and unambiguous identification of a parcel of land that differentiates it from all others. Understanding the legal aspects and influences surrounding land descriptions is crucial for any real estate professional. This chapter delves into the scientific principles and legal frameworks governing land description, exploring the methodologies used and their impact on property rights and valuation.

1. The Foundation of Land Description

• 1.1 Defining Real Property: Real property, in its most basic form, encompasses the surface of the Earth, the space above it (air rights), and the subsurface below (mineral rights), along with any permanent improvements attached to the land. A clear legal description is essential to delineate the precise boundaries of this real property.

• 1.2 Legal Description vs. Street Address: While a street address offers a convenient reference, it is not a legally binding identifier. Street addresses can change, be duplicated, or be ambiguous. The legal description is the definitive method for identifying a specific parcel of land in legal documents such as deeds, mortgages, and easements. USPAP (Uniform Standards of Professional Appraisal Practice) requires identification of the subject property, often necessitating reliance on the legal description.

• 1.3 The Importance of Uniqueness: The core function of a legal description is to uniquely differentiate one parcel of land from another. This is paramount for establishing clear ownership, preventing boundary disputes, and enabling accurate property valuation.

2. Methods of Land Description

The most common systems for legally describing land are Metes and Bounds, Rectangular (Government) Survey System, and Lot and Block System.

• 2.1 Metes and Bounds: This system, primarily used in the original thirteen colonies and other eastern states, relies on sequential descriptions of boundary lines❓ using metes (distances) and bounds (directions).

  • 2.1.1 Principles:

    • Point of Beginning (POB): The description starts at a clearly defined POB, which must be a known point or referenced to an adjoining survey. The accuracy of the POB is critical; an error here propagates throughout the entire description.
    • Calls: Boundary lines, or calls, are described by their course (direction, usually expressed as bearings or angles) and distance. Bearings are angles measured from North or South, such as “North 45 degrees East” (N 45° E). Angles can also be used, referencing the last described direction.
    • Monuments: Natural (e.g., rivers, trees) or artificial (e.g., fences, roads) monuments are used as reference points. However, monuments are not always reliable due to potential movement, decay, or removal. The legal hierarchy prioritizes natural monuments > artificial monuments > metes.
    • Closure: A crucial requirement is that the description must “close,” meaning that the sequence of courses and distances must return to the POB. Failure to close indicates an error in the survey or the legal description. Mathematically, closure can be checked using trigonometry.

  • 2.1.2 Mathematical Check for Closure: While a full surveyor’s closure check involves detailed coordinate geometry, a simplified check for angular closure is possible. In a polygon with n sides, the sum of the interior angles should equal (n-2) * 180 degrees. Any significant❓ deviation from this value suggests an error.

  • 2.1.3 Example: Imagine a square lot. The description might start at a POB marked by an iron pin. The first call could be “North 100 feet to a large oak tree.” The second call could be “East 100 feet to a concrete monument.” The third call could be “South 100 feet to a steel fence post.” The final call should be “West 100 feet to the point of beginning.”

  • 2.1.4 Limitations: Metes and bounds descriptions can be complex, lengthy, and prone to errors. The reliance on potentially impermanent monuments poses a challenge. The complexity increases the probability of errors and disputes.

• 2.2 Rectangular (Government) Survey System: This system, established by the US government in 1785, divides land into a grid of rectangles, primarily used in Midwestern and Western states.

  • 2.2.1 Principles:

    • Principal Meridians and Base Lines: The system is based on intersecting lines: principal meridians (running North-South) and base lines (running East-West). Each principal meridian has a corresponding base line.
    • Township and Range Lines: The land is further divided by township lines (running East-West, parallel to the base line, at 6-mile intervals) and range lines (running North-South, parallel to the principal meridian, at 6-mile intervals).
    • Townships: The intersection of township and range lines creates squares called townships, approximately 6 miles on each side (36 square miles). They are numbered based on their position relative to the base line (e.g., Township 1 North) and principal meridian (e.g., Range 2 East).
    • Sections: Each township is divided into 36 sections, each approximately 1 mile square (640 acres). Sections are numbered in a serpentine pattern, starting in the northeast corner.
    • Subdivisions of Sections: Sections can be further divided into quarters (160 acres), quarter-quarters (40 acres), etc. Common subdivisions include the NW 1/4, SE 1/4 of the NE 1/4.

  • 2.2.2 correction lines❓❓❓ and Guide Meridians: Due to the curvature of the Earth, range lines converge towards the North Pole. To compensate for this, correction lines (standard parallels) are established at intervals of 24 miles north and south of the base line. Guide meridians are established every 24 miles east and west of the principal meridian to maintain the rectangular grid.

  • 2.2.3 Area Calculation: The area of a parcel described using the rectangular survey system can be calculated by multiplying the fractional parts of the section together and then multiplying by the total area of a section (640 acres).

    • Area = (Fraction 1) * (Fraction 2) * … * 640 acres
      • Example: The SE 1/4 of the NW 1/4 of Section 10 contains (1/4) * (1/4) * 640 = 40 acres.

  • 2.2.4 Example: A legal description might read: “The NW 1/4 of the SE 1/4 of Section 8, Township 2 North, Range 3 West of the Principal Meridian.”

  • 2.2.5 Advantages: The rectangular survey system provides a systematic and relatively straightforward method for describing large areas of land.

  • 2.2.6 Limitations: The system is less precise for irregular parcels and can be difficult to apply in areas with rugged terrain.

• 2.3 Lot and Block System: Commonly used in urban and suburban areas, this system relies on recorded plats (maps) that subdivide land into numbered lots and blocks.

  • 2.3.1 Principles:

    • Plat Recording: A developer creates a plat showing the layout of the subdivision, including lot dimensions, street locations, easements, and other relevant information. This plat is then recorded with the local government.
    • Legal Description: The legal description for a lot within the subdivision refers to the recorded plat. For example, “Lot 4, Block B, Pleasant Valley Subdivision, as recorded in Plat Book 10, Page 25, at the County Recorder’s Office.”

  • 2.3.2 Advantages: Simplifies land description, especially for smaller parcels in densely developed areas.

  • 2.3.3 Disadvantages: Relies heavily on the accuracy and completeness of the recorded plat. Any errors or ambiguities in the plat can lead to title disputes.

3. Legal Aspects and Influences

• 3.1 Title and Record Data: Accurate land descriptions are paramount for establishing clear title to real property. Appraisers must research historical market activity in the subject’s market area. Title searches are essential to verify ownership, identify encumbrances (e.g., mortgages, liens, easements), and ensure that the legal description accurately reflects the property being appraised. Errors in the legal description can cloud title and create significant legal problems.

• 3.2 Easements and Rights of Way: An easement grants someone the right to use another person’s land for a specific purpose (e.g., utility lines, access roads). Rights of way are similar to easements, often used for transportation purposes. Legal descriptions of easements must clearly define their location and extent. Easements can significantly impact property value.

• 3.3 Deed Restrictions: Deed restrictions are private agreements that limit the use of land. They can control architectural styles, building heights, or types of businesses allowed. Deed restrictions are usually included in the legal description or referenced in the deed.

• 3.4 Zoning and Land Use Regulations: Zoning ordinances are local laws that regulate land use within a municipality. Zoning classifications specify permitted uses, building setbacks, height restrictions, and other development standards. The legal description, in conjunction with zoning maps, determines the allowable uses of a property.

  • 3.4.1 Zoning Compliance: Real estate appraisers must check zoning and land use regulations applicable to the subject property.
    • 3.4.1.1 Legal Land Use Researching the allowable uses can be simple or complicated.
    • 3.4.1.2 Development Standards If the parcel is being used in compliance with zoning requirements, but the lot size is too small, the side yards are too small, or there is a building in the setback area, the problem areas will commonly be considered as non-compliant with development standards rather than as illegal land uses.

• 3.5 Subsurface Rights: Ownership of land may or may not include subsurface rights, such as the right to extract minerals, oil, or gas. Legal descriptions may specifically reserve these rights to a previous owner. The separation of surface and subsurface rights can significantly impact property value.

• 3.6 Floodplain Regulations: Land located in designated floodplains is subject to specific regulations regarding construction and development. Flood maps and FEMA (Federal Emergency Management Agency) data are used to identify flood hazard areas. Legal descriptions should reference flood zone designations.

• 3.7 Environmental Regulations: Environmental regulations, such as those related to wetlands protection or hazardous waste disposal, can significantly impact land use and value. Legal descriptions should be cross-referenced with environmental databases to identify potential environmental liabilities.

• 3.8 Historical Districts: In older cities, certain homes and commercial buildings are classified as historic buildings. A historic district is classified as such by state or local governments, which limit development in those areas to approved projects only. Once a historic district meets the requirements to become federally or locally certified, financial benefits such as property tax incentives are made available to property owners, developers, investors, and renovators by the local and national government.

4. Practical Applications and Related “Experiments”

• 4.1 Case Study: Boundary Dispute: A homeowner builds a fence based on an incorrect interpretation of the metes and bounds description in their deed. A survey reveals that the fence encroaches on the neighbor’s property. This case illustrates the importance of accurate surveys and legal interpretation of land descriptions.
  • Practical Learning: Review recorded deeds and survey plats for properties in your local area. Identify potential ambiguities or inconsistencies in the legal descriptions.
• 4.2 Zoning Variance Request: A property owner wants to build a commercial structure on a lot zoned for residential use. They apply for a zoning variance, arguing that the surrounding properties are primarily commercial. This example demonstrates the influence of zoning regulations on land use and the legal processes involved in seeking exceptions to those regulations.
  • Practical Learning: Research the zoning ordinances for a specific parcel of land. Determine the permitted uses and development standards. Consider potential challenges or opportunities related to zoning compliance.
• 4.3 Mineral Rights Ownership: A landowner discovers oil on their property. However, a title search reveals that the mineral rights were reserved by a previous owner in a 1920s deed. This scenario highlights the importance of understanding the full scope of property rights, including subsurface rights, and the legal consequences of separated ownership.
  • Practical Learning: Review examples of deeds that reserve mineral rights. Understand the legal implications for property value and development potential.

5. Modern Surveying Technologies

While historical methods relied on chains and compasses, modern surveying utilizes advanced technologies to enhance accuracy and efficiency.

• 5.1 Global Positioning System (GPS): GPS uses satellite signals to determine precise coordinates on the Earth’s surface. Differential GPS (DGPS) provides even greater accuracy by using a base station to correct for atmospheric errors.
• 5.2 Robotic Total Stations: These instruments combine electronic distance measurement (EDM) with angular measurement capabilities. They can automatically track targets and record data, streamlining the surveying process.
• 5.3 Laser Scanning (LiDAR): LiDAR uses laser pulses to create detailed 3D models of the terrain. This technology is particularly useful for surveying large areas or complex structures.
• 5.4 Geographic Information Systems (GIS): GIS integrates spatial data (e.g., legal descriptions, zoning maps, environmental data) into a database. This allows for efficient analysis and visualization of land-related information.

Conclusion

Understanding land descriptions, their legal foundations, and the influences that shape them is crucial for anyone involved in real estate. By mastering the principles and techniques outlined in this chapter, you will be well-equipped to navigate the complexities of property rights and contribute to accurate and reliable real estate valuations. Continued education and practical experience are essential for staying abreast of evolving legal standards and technological advancements in the field of land description.