California Real Estate Principles, 10.1 Edition Chapter 6 Part I: Legal Descriptions, Methods of Acquiring Title, and Deeds

Chapter 6 – Student Learning Outcomes List three legal ways to describe and locate land Outline five legal ways to acquire title to real estate Describe the difference between a grant and quitclaim deed Explain the California Recording System List the most common ways owners hold to real estate

WHERE IS THE STATE OF CALIFORNIA? 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.

Methods of Land Description Lot, Block and Tract Metes and Bounds U.S. Government Survey - Sections - Townships

Lot, Block and 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 2 8 9 3 10 4 5 11 6 7 12 A B C

Metes and Bounds Metes = measurements Bounds = boundaries POB = point of beginning POB is also the place it ends Primarily used with irregularly shaped parcels in rural areas

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 8th 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.

Base (parallel) and Meridian (longitude) lines

U. S. Government Survey

California Base and Meridian

U.S. Government Survey System (Locating Townships) NORTH T4N T3N T2N R4W R3W R2W R1W T1N R2E R3E R4E T1S EAST WEST T2S T3S Initial Point T4S Principal Meridian Base Line SOUTH

U.S. Government Survey System (Sections in a Township)

U.S Government Survey System (Acres in a section)

Sample Question: 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. 160 acres 180 acres 200 acres 210 acres

Solution The N ½ of the W ½ of the SE ¼ of Section 12 = 40 acres the N ½ of the S ½ of Section 20 = 160 acres N E ¼ of the NE ¼ of the NE ¼ of Section 17 = 10 acres 40 + 160 + 10 = 210 acres

Review: 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

Assessor’s Map APN LEGAL 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. LEGAL

5 Ways to Acquire Real Property 1. By will . . . Testate 2. By succession . . . In testate By accession By occupancy 5. By transfer

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

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.

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

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. Independent Administration of Estates Act

Intestate Succession Separate Property Surviving Spouse and no children ½ Spouse ½ Parents 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 to all children

All to Surviving Spouse – Children get nothing Community Property All to Surviving Spouse – Children get nothing

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

Title by Occupancy Abandonment Adverse Possession One person gains ownership of another’s real property by occupying the parcel of land

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

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

Valid Deed In writing Describe parties Competent grantor Capable grantee Property described 6. Granting clause 7. Signed by grantor(s) 8.Words of Conveyance 9. Grantor acknowledges the content of the document 10. Delivery to grantee 11. Acceptance by grantee

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

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

Recordation lst 2nd 3rd 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. The ORDER is by the TIME and DATE of recordation of the document establishes priority lst 2nd 3rd Except: (a) knowledge of unrecorded instrument (b) prior possession of the premises

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