1. ©2011 Cengage Learning

2. Chapter 2 Part I: Legal Descriptions, Methods of Acquiring Title, and Deeds California Real Estate Principles ©2011 Cengage Learning

3. Chapter 2 1. List three legal ways to describe and locate land 2. Outline five legal ways to acquire title to real estate 3. Describe the difference between a grant and quitclaim deed 4. Explain the California Recording System 5. List the most common ways owners hold to real estate ©2011 Cengage Learning

4. Between Longitude 114 degrees west and 125 degrees west and Latitude 32 degrees north and 42 degrees north in the United States of America in the North American Continent, which is in the northern hemisphere of the planet Earth, which is in the Milky Way, which is in the Galaxy. WHERE IS THE STATE OF CALIFORNIA? ? ©2011 Cengage Learning

5. METHODS OF LAND DESCRIPTION 1. Lot, Block and Tract 2. Metes and Bounds 3. U.S. Government Survey - Sections - Townships ©2011 Cengage Learning

6. LOT, BLOCK & TRACT SYSTEM Recorded map = legal description View Grand Estates, Tract No. 2025, filed May 17, 2000, Map Book No. 23, Page 13, official records of the Sacramento County Recorder’s Office, Sacramento County, California The legal description of Lot 3 is: Lot 3, Block B, View Grande Estates, Tract No. 2025, filed May 17, 2000, in Map Book No. 23, Page 13, in the official records of the Sacramento County Recorder’s Office, Sacramento County, California 50’ 150’ 1 28 93 104 511 6 7 12 A B C ©2011 Cengage Learning

7. METES AND BOUNDS Metes = measurements Bounds = boundaries P. O. B = point of beginning POB is also the place it ends Primarily used with irregularly shaped parcels in rural areas ©2011 Cengage Learning

8. Metes and Bounds Description Beginning at a point on the southerly line of O street, 200 ft. westerly of the southwest corner of the intersection of O and 8 th streets; running hence due south 300 feet to the northerly line of P street; hence westerly along the northerly line of P street, 100 feet; hence northerly and parallel to the first course, 300 feet, to the southerly line of O street; hence easterly along the southerly line of O street, 100 feet, to the point or place of beginning. ©2011 Cengage Learning

9. NW SW NE SE ©2011 Cengage Learning

10. Base (parallel) and Meridian (longitude) lines ©2011 Cengage Learning

11. U. S. Government survey ©2011 Cengage Learning

12. California Base & Meridian ©2011 Cengage Learning

13. T4N T3N T2N T1N T1S T2S T3S T4S R2ER3ER4ER1WR2WR3WR4W NORTH EAST SOUTH WEST Base Line Principal Meridian Initial Point U.S. GOVERNMENT SURVEY SYSTEM (Locating Townships) ©2011 Cengage Learning

14. U.S. GOVERNMENT SURVEY SYSTEM (Sections in a Township ) ©2011 Cengage Learning

15. U.S GOVERNMENT SURVEY SYSTEM (Acres in a section) ©2011 Cengage Learning

16. Section How many acres are contained in The N ½ of the W ½ of the SE ¼ of Section 12, and the N ½ of the S ½ of Section 20 and the N E ¼ of the NE ¼ of the NE ¼ of Section 17? ©2011 Cengage Learning

17. OR 640 /4 /2 /2 = 40 acres AND = + Of Section 20 = acres640 Of the S ½ = 640 / 2 =320 N ½ = 320 / 2 =160 AND = + OR 640 /2 /2 = 160 acres Of Section 17 = acres640 Of the NE ¼ = 640 / 4 = 160 Of the NE ¼ = 160 / 4 = 40 NE ¼ = 40 / 4 = 10 OR640 / 4 /4 /4 = 10 acres TOTAL 210 ACRES Of Section 12 = acres 640 of the S E ¼ = 640/4= 160 of the West ½ = 160/2 = 80 N ½ = 80/2 = 40 ©2011 Cengage Learning

18. Section test: #1 Which is largest? a)The N ½ of the W ½ of the SE ¼ of Section 12? b)The N ½ of the S ½ of Section 20? c)The NE ¼ of the NE ¼ of the NE ¼ of Section 17? d)All of the above are the same ©2011 Cengage Learning

19. Section test: #2 How many acres is contained in the following land description? The N ½ of the W ½ of the SE ¼ of Section 12 and the N ½ of the S ½ of Section 20 and the NE ¼ of the NE ¼ of the NE ¼ of Section 17. a.160 acres b.180 acres c.200 acres d.210 acres ©2011 Cengage Learning

20. Fun with Survey math! Tract = 24 x 24 mi = 16 townships Township = 6 miles by 6 miles Township = 36 square miles Township = 36 sections Section = 1 mi x 1 mi = 640 acres Acre = 43,560 square feet ©2011 Cengage Learning

21. ASSESSOR’S MAP Assessor’s Map Book 34 Page 18 Assessor Parcel Numbers shown in circles Lots 50 through 57 of Tract 2118, filed in Recorded Maps, Book 63, page 39 The tax assessor assigns every parcel of land in the county its own parcel number. For example, the westernmost parcel (Lot 50) in the map would carry the number 0034-018-008, meaning Book 34, Page 18, Parcel 8. APN LEGAL ©2011 Cengage Learning

22. 5 Ways to Acquire Real Property 1. By will... Testate 2. By succession... In testate 3. By accession 4. By occupancy 5. By transfer ©2011 Cengage Learning

23. Title by Succession: Types of Wills  Witnessed Will = formal Witnesses = 2 required Usually written by an attorney Codicil = later alterations to the original will  Holographic Will = handwritten, dated, signed (Witness NOT required)  Statutory Will = preprinted form, names administrator, requires 2 witnesses ©2011 Cengage Learning

24. Title by Succession Terms Testator/trix = person making the will. Testate = decedent died with a will. Intestate = decedent died with NO will. Executor/trix = named in the will. Intestate succession = transfer of property by the law of succession. Law of succession = court distribution of decedent’s property Administrator/trix = named by the court. ©2011 Cengage Learning

25. Title by Succession Terms Devisor = Real Property = Devise = Devisee Legator = Personal Property = Bequeath = Legatee Bequest = to leave personal property Legacy = to leave money $$$ Codicil = later alteration to a will ©2011 Cengage Learning

26. Probate Sale in California Superior court Court approves: (1) the last will and testament, (2) executor/trix, (3) broker Initial offer must be at least 90% of the appraised value. The probate court is petitioned to confirm the sale. Overbids = 10% of 1st $10,000 + 5% above $10,000 When there are no heirs, the property transfers to the state by escheat. ©2011 Cengage Learning

27. INTESTATE SUCCESSION SEPARATE PROPERTY Surviving Spouse or registered domestic partner One Child ½ Spouse ½ Child Surviving spouse or registered domestic partner Two or More Children 1/3 Spouse 2/3 Children No spouse or registered domestic partner Children Equal shares too all children COMMUNITY PROPERTY All to Surviving Spouse – Children get nothing ©2011 Cengage Learning

28. Remember Registered Domestic Partners have rights equal to husband & wife in California due to Domestic Partnership Law since January 2005. ©2011 Cengage Learning

29. Title by ACCESSION: Property added to property 1. By WATER Action a.Accretion – Gradual addition b.Reliction – Uncovered land by receding water c.Avulsion – Sudden tearing away 2. By addition a. tenant abandoned FIXTURE b. improvements made in error ©2011 Cengage Learning

30. Title by Occupancy Abandonment Adverse Possession One person gains ownership of another’s real property by occupying the parcel of land ©2011 Cengage Learning

31. Adverse Possession 1. Open and notorious use 2. Hostile to the owner’s wishes (without permission of owner) 3. Claim of right or color of title 4. Continuous use for 5 years 5. Payment of property taxes paid for 5 consecutive years NOTE: Cannot obtain on government land. ©2011 Cengage Learning

32. Title by Transfer Private grant (deed) Public grant (patent) Gift (no compensation) Public dedication (give land to government Court action (foreclosure, escheat, eminent domain) ©2011 Cengage Learning

33. Valid DEED 1.In writing 2.Describe parties 3.Competent grantor 4.Capable grantee 5.Property described 6. Granting clause 7. Signed by all grantor(s) 8.Words of Conveyance 9. Grantor acknowledges the content of the document 10. Delivery to grantee 11. Acceptance by grantee ©2011 Cengage Learning

34. Ownership DEEDS 1.GRANT DEED – Implied warranties: (1) property not previously conveyed (2) free of undisclosed encumbrances. Contains after-acquired title 2.QUITCLAIM DEED – No warranties. Used to remove a cloud on title. Gives all that you have. 3.WARRANTY DEED–Express warranties made, rarely used in California because of grantor liability. It is replaced by title insurance and grant deed 4.GIFT DEED – The consideration is the love and affection ©2011 Cengage Learning

35. Other DEEDs 1.TAX DEED – Tax collector conveys tax sale property 2.SHERIFF’S DEED – Conveys court foreclosure property for judgment sale. 3.TRUST DEED – Conveys trustee bare, legal title. Property is the collateral/security for the loan/note. 4.TRUSTEE’S DEED – Trustee conveys title to buyer at trustee sale in a foreclosure proceedings. 5.RECONVEYANCE DEED – Transfers back to the trustor the bare, legal title to remove the security interest when the loan is paid off. ©2011 Cengage Learning

36. RECORDATION lst2 nd 3 rd  The ORDER is by the TIME and DATE of recordation of the document establishes priority  The first to record is the first in right Knowledge of vested interest Party didn’t record, but took possession  Recorded deed gives constructive notice  Unrecorded deed is valid. Except: (a) knowledge of unrecorded instrument (b) prior possession of the premises ©2011 Cengage Learning

37. Acknowledged County Recorder won’t record document unless notarized Notary Public acknowledges the signature = verifies the party signed in notary’s presence and person known to the notary Grantor acknowledges the contents of the document that the form is complete, accurate and ready for recordation ©2011 Cengage Learning