Unit 4: Property Description

A metes-and-bounds description always ends where?

A metes-and-bounds description always ends at the POB so that the tract being described has closure.

How many principal meridians are in the United States?

37

To calculate the cost of a parcel of land of three acres at $1.10 per square foot, convert the acreage to square feet before multiplying:

43,560 square feet per acre × 3 acres = 130,680 square feet 130,680 square feet × $1.10 per square foot = $143,748

T/F: The government survey system is commonly used in North Carolina.

False; The government survey system is not used in North Carolina nor in any of the original British colonies.

township lines

Lines running east and west, parallel to the base line and six miles apart, are referred to as "word".

Does each principal meridian describe specific or broad areas of land by boundaries?

Each principal meridian describes only specific areas of land by boundaries.

triangle

Base × Height / 2 = Square footage (B × H / 2 = area)

T/F: There are 43,560 square feet in an acre.

True; There are only 43,560 square feet in an acre.

professional land surveyor

is trained and licensed to locate a given parcel of land and to determine its legal description.

physical survey

aka a mortgage location survey, or an identification survey. When a survey also shows the location, size, and shape of buildings located on the lot, it is referred to as a "word".

base lines

run east and west

principal meridians

run north and south

What is more important: the location or the distance of the monuments?

the location of the monuments is more important than the distance stated in the wording. Problems are created in some instances when a monument has shifted or disappeared over the years.

A typical real estate survey shows the landlines and position of any structures on the land. A survey that shows land elevations and curvatures is called A) an earth survey. B) a contour survey. C) a North Carolina substitute survey. D) a topographic survey.

D) a topographic survey. When a survey also shows the location, size, and shape of buildings located on the lot, it may be called a physical survey, a mortgage location survey, or an identification survey.

A metes-and-bounds legal description that does not return to the point of beginning is considered A) imperfect because there is a variance on the property. B) informal. C) standard as long as the first words used were "starting at or commencing at." D) imperfect and in need of correction.

D) imperfect and in need of correction. A metes-and-bounds description that does not start and end at a point of beginning is considered to be imperfect and in need of correction.

All the following are true about a metes-and-bounds legal description EXCEPT A) the point of beginning must be an identifiable landmark or monument. B) the final call must return to the point of beginning. C) it will have a series of calls in relationship to monuments. D) it is only used in states west of the Mississippi River.

D) it is only used in states west of the Mississippi River. Metes-and-bounds legal descriptions are used in all areas of the United States, and are common in legal documents in states east of the Mississippi River.

A survey would do all of the following EXCEPT A) create legal descriptions. B) find encroachments. C) establish boundaries. D) reveal illegal zoning use.

D) reveal illegal zoning use. A survey would not find an illegal use. A survey sets forth the legal description of the property and shows the location and dimensions of the parcel. A survey would not find an illegal use of the property.

A street address would be adequate property description for a A) deed of trust. B) sales contract. C) special warranty deed. D) short-term lease.

D) short-term lease. A street address is a good example of an informal reference and is often used in listing contracts and short-term rental agreements. Any contract to convey a real property interest and any type of deed should always contain a legally acceptable description.

Sections in a Township

Each township contains 36 sections. Each section is one square mile or 640 acres, with 43,560 square feet in each acre. Sections are numbered 1 through 36, as shown in Sections in a Township. Section 1 is always in the northeast, or upper right-hand, corner. The numbering proceeds right to left to the upper left-hand corner. From there, the numbers drop down to the next tier and continue from left to right, then back from right to left.

T/F: A legal description that refers to angles and points of beginning is a monuments description.

False; A legal description that refers to angles and points of beginning is a metes-and-bounds description.

T/F: Relying on old surveys or legal descriptions is an acceptable real estate brokerage practice.

False; Accurate and current legal descriptions are critical in order to convey title. Legal descriptions appear on sales contracts, deeds, mortgages, and other important real estate documents, and without a current and accurate legal description, marketable and insurable title might not convey.

T/F: If a calculation requires you to determine front footage, use the length of the lot and multiply by its width.

False; To calculate front footage, one only needs the dimension of the front of the lot, which would be the first number listed in the dimensions. In other words, in a lot that is 100 feet by 70 feet, the only measurement needed is 100 feet.

Do's and don't's of legal descriptions:

Legal descriptions should not be changed, altered, or combined without adequate information from a competent authority such as a surveyor or title lawyer. Legal descriptions should always include the name of the county and state in which the land is located.

square formula

Length × Width = Square footage (L × W = area)

rectangle

Rectangle: Length × Width = Square footage (L × W = area)

point of beginning (POB)

Such a description starts at a definitely designated place called the "word" and proceeds around the boundaries of the tract (clockwise or counterclockwise) by reference to linear measurements and compass directions.

When are surveys required in real estate transactions?

Surveys are required in many real estate transactions, such as when conveying a portion of a given tract of land, conveying real estate as security for a mortgage loan, showing the location of new construction, locating roads and highways, and determining the legal description of the land on which a particular building is located. When underwriting a real estate loan, the lender might require an up-to-date survey of the collateral property to make sure that there are no encroachments on the property because an encroachment could render the title to the property unmarketable. Encroachments could cross boundary lines, easements, or setbacks.

plat map

The first step in subdividing land is the preparation of a "word"—by a licensed surveyor or engineer—as illustrated in Subdivision Plat Map. On a "word", the land is divided into numbered or lettered blocks and lots, and streets or access roads for public use are indicated. Lot sizes and street details must be indicated completely and must comply with all local ordinances and requirements.

ranges

The land on either side of a principal meridian is divided into six-mile-wide strips by lines that run north and south, parallel to the meridian. These north-south strips of land are called "word". They are designated by consecutive numbers east or west of the principal meridian.

government (rectangular or geodetic) survey system

The rectangular survey system, sometimes called the "word", was established by Congress in 1785 to standardize the description of land acquired by the newly formed federal government. This form of land description is not used in North Carolina or the other original British colonies.

T/F: Title insurance routinely excludes coverage of title defects if no survey was conducted.

True; While a survey is not required, purchasers cannot obtain high-quality title insurance if they did not obtain a recent survey. Title insurance routinely excludes coverage of title defects if no survey was conducted.

Townships in the Rectangular Survey System

When the horizontal township lines and the vertical range lines intersect, they form squares. These township squares are the basic units of the rectangular survey system. Townships are 6 miles square and contain 36 square miles (23,040 acres).

informal description

aka reference; the street address standing alone is referred to as an "word".

topographic survey

aka topo survey. When a survey shows the lay of the land, such as where there are hills and valleys, it is called a "word".

Both principal meridians and base lines are located by reference to degrees of

longitude and latitude

calls

point of beginning (POB) and proceeds around the boundaries of the tract (clockwise or counterclockwise) by reference to linear measurements and compass directions, referred to as "word". Each call gives the distance (metes) and direction (bounds). Each call begins with either North or South (the cardinal directions), then the number of degrees East or West, using a surveyor's compass.

survey

which sets forth the legal description of the property, and a survey sketch, which shows the location and dimensions of the parcel.

Each township contains how many sections?

36 sections

Monuments

"Word" are fixed objects used to establish real estate boundaries.

Legal descriptions

"Word" describe the land but not the improvements that are appurtenant and automatically run with the land. This means all items attached to the land will convey in the deed with the legal description unless specifically excluded by contract such as fixtures. A "word" is an exact way of describing real estate in a contract, deed, mortgage, or another document that will be accepted by a court of law.

A warehouse is 80 feet by 120 feet and has ceilings 14 feet high. If 1,200 square feet has been closed off as an office all the way up to the ceiling, how many cubic feet of storage space are left? A) 117,600 B) 151,200 C) 134,400 D) 133,200

A) 117,600 L × W = area (building) 120' × 80' = 9,600 sq. ft. − 1,200 sq. ft. (office) = 8,400 sq. ft. (storage) 8,400 sq. ft. × 14' ceiling = 117,600 cu. ft. of storage

There are two documents that should always have a legal description during the real estate process. One is any type of deed. What is the other? A) Contract to convey real property interest B) Government acreage allowance C) Street address assignment D) Contract for an interest in a mobile home

A) Contract to convey real property interest. Legal descriptions, once recorded, affect title to real estate and should only be prepared by a professional land surveyor or a lawyer. Real estate brokers who attempt to draft legal descriptions create potential risks for themselves and their clients and customers.

A metes-and-bounds legal description A) must commence and finish at the same identifiable point. B) is not acceptable in court in most jurisdictions. C) can be made only in areas excluded from the rectangular survey system. D) is used to define areas omitted from recorded subdivision plats.

A) must commence and finish at the same identifiable point. A meets-and-bounds legal description describes the boundaries on every side of a property, beginning and ending at one specific point called the "point of beginning," identified by a monument (a permanent manmade marker placed at that corner of the property).

A form of legal description that uses meridians, sections, and ranges is A) rectangular survey. B) assessor's parcel number. C) lot, block, and subdivision. D) metes and bounds.

A) rectangular survey. The rectangular survey system, sometimes called the government (rectangular or geodetic) survey system, was established by Congress in 1785 to standardize the description of land acquired by the newly formed federal government. The description is made up of meridians, sections, and ranges.

A farmer owns the W½ of the NW¼ of the NW¼ of a section. The adjoining property can be purchased for $300 per acre. Owning all of the NW¼ of the section would cost the farmer

B) $42,000. 160 acres - 20 = 140 acres to buy × $300 = $42,000

The section due east of Section 13 is

B) Section 18. Township squares are subdivided into sections, and each township contains 36 sections. Sections are numbered 1 through 36. Section 1 is always in the northeast, or upper right-hand, corner. The numbering proceeds right to left to the upper left-hand corner. From there, the numbers drop down to the next tier and continue from left to right, then back from right to left.

Which statement is TRUE regarding surveys? A) A topographical survey shows the location of improvements on the parcel. B) Title insurance excludes many title defects from coverage if no property survey was completed. C) A locational survey shows the lay of the land or elevations. D) Encumbrances are discovered and disclosed by a survey.

B) Title insurance excludes many title defects from coverage if no property survey was completed. Title insurance routinely excludes coverage of title defects that would have been discovered by a survey, if a survey was not conducted.

An exact way of describing real estate in a contract, deed, mortgage, or another document that will be accepted by a court of law is called A) principal meridian. B) a legal description. C) an informal reference. D) a survey.

B) a legal description. A legal description is an exact way of describing real estate in a contract, deed, mortgage, or another document that will be accepted by a court of law. While street addresses are not sufficient legal descriptions, the legal description in a deed or mortgage may be followed by the words "commonly known as" and the street address. The street address standing alone is called an informal description or reference.

A metes-and-bounds legal description states, "Commencing at the corner of Ridge Street and Maple Street, then east 40 degrees to Elm Ave, then 60 degrees south to Main St., then 40 degrees west to Ash Ave." This description is A) incorrect because it is not listed in rods. B) imperfect because no closure has been given. C) perfect and correct as listed. D) not correct because the monument has not been noted.

B) imperfect because no closure has been given. The description must return to the point of beginning—the corner of Ridge and Maple streets—to provide closure.

Real estate is bought and sold on the basis of A) street address. B) legal description. C) plat and parcel. D) plat size only.

B) legal description. Real estate is bought and sold based on legal descriptions. One of the essential elements of a valid deed is an accurate legal description of the land being conveyed. Street addresses are not sufficient legal descriptions.

All of the following are methods for legally describing property EXCEPT A) the rectangular survey system. B) lot and bounds. C) lot and block. D) metes and bounds.

B) lot and bounds. The rectangular or government survey system of land description is used mostly west of the Mississippi River. Lot and block is a method used to describe land in subdivisions. Metes and bounds is the most common method of land description in North Carolina.

What is the cost of a driveway that is 15 feet wide, 40 feet long, and 4 inches thick if concrete sells for $60.00 a cubic yard and labor is $1.25 per square foot?

C) $1,194 L × W × H = cu. ft.; concrete = 4" ÷ 12 = 0.333" thickness of the slab 40' × 15' × 0.333 = 199.8 cu. ft. (27 cu. ft. = 1 cu. yd.) 199.8 ÷ 27 = 7.4 cu. yd. × $60 = $444 Labor = 40 × 15 = 600 sq. ft. × $1.25 per sq. ft. = $750 $444 concrete + $750 labor = $1,194

If the local market value of undeveloped land is $25,000 per acre, what is the value of a lot that has 21,780 square feet? A) $215,422 B) $544,500 C) $12,500 D) $15,755

C) $12,500 21,780 square feet ÷ 43,560 number of sq. ft. in acre = 0.5 acre × $25,000 per acre = $12,500

Which of these is MOST likely to create a correct legal description for a property? A) Real estate agent B) Mortgage loan officer C) Surveyor D) Real estate closer

C) Surveyor Legal descriptions should not be changed, altered, or combined without adequate information from a competent authority such as a surveyor.

Generally, a method used for land description is called reference to a recorded plat or lot-and-block. In North Carolina, this has a slightly different name and is called reference to A) a map point. B) a rectangular survey. C) a recorded deed. D) a plat map.

C) a recorded deed. In North Carolina, the method is by reference to a publicly recorded document, usually an earlier deed to the identical property. This deed typically contains a legal description of the property that is to be conveyed.

If the property being transferred is residential property within an established subdivision, the most commonly used legal description would be A) street address. B) metes-and-bounds. C) reference to a recorded plat. D) reference to a recorded deed.

C) reference to a recorded plat. When properly signed and approved, the subdivision plat must be recorded in the public records in the county where the land is located to be a legally acceptable property description. In describing a lot from a recorded subdivision plat, the lot and block number, name or number of the subdivision plat, and name of the county and state are used.

A buyer purchased a half-acre parcel for $2.15 per square foot. What was the selling price of the parcel? A) $774 B) $93,654 C) $1,376 D) $46,827

D) $46,827 43,560 ÷ 2 = 21,780 x $2.15 = $46,827

How many lots, each measuring 72.5 feet wide by 100 feet deep, could be made from a 2-acre parcel of land? A) 7 B) 6 C) 14 D) 12

D) 12 72.5 ft. × 100 ft. = 7,250 SF per lot; 2 acres × 43,560 SF = 87,120 SF ÷ 7,250 = 12 lots

A monument is used in which of the following types of legal descriptions? A) Rectangular survey B) Lot and block C) Government survey D) Metes and bounds

D) Metes and bounds Monuments are fixed objects used to establish real estate boundaries. Natural objects such as stones, large trees, lakes, and streams, as well as streets, highways, and markers placed by surveyors, are commonly used as monuments.

Which of the following is NOT an important aspect of a survey?

D) Surveys indicate the nearest cell phone tower. Surveys may show hills, valleys, house, and barn locations but will not show a cell phone tower location nearby the property unless it is on the property.

reference to a recorded plat (lot-and-block or recorded plat system)

It is a system that uses lot and block numbers—referred to as a plat or subdivision—placed in the Registry of Deeds of the county where the land is located. This is the most common and worry-free method of describing property in urban areas.

Legal descriptions should always include the...

Legal descriptions should always include the name of the county and state in which the land is located because meridians often relate to more than one state and occasionally relate to two base lines.

To calculate square yards (necessary for carpeting, for example):

Length × Width (in feet) and divide by 9. (L × W / 9 = square yards.)

What are some example of common monuments?

Natural objects such as stones, large trees, lakes, and streams, as well as streets, highways, and markers placed by surveyors, are commonly used as monuments.

By law, which section is set aside for school purposes?

Section 16

What are the 3 basic methods to legally describe real estate used in the US?

There are three basic methods of legally describing real estate used in the United States: (1) metes and bounds, (2) the rectangular (government) survey, and (3) reference to recorded plat (lot and block). North Carolina also uses reference to a publicly recorded document that contains a legal description.

Each principal meridian has a name or number and is

crossed by a base line and each principal meridian and its corresponding base line are used to survey a definite area of land, indicated on the map by boundary lines.

To determine the location and size of a property described in the rectangular or government survey style, start where?

start at the end and work backward to the beginning, reading from right to left. For example, consider the following description (see A Section): The S½ of the NW¼ of the SE¼ of Section 11, Township 8 North, Range 6 West of the Fourth Principal Meridian.

The legal description that uses principal meridians and base lines to describe a property is A) the government survey. B) the octagonal survey. C) the reference to recorded plat. D) metes and bounds.

A) the government survey. Principal meridians run north and south, while base lines run east and west. Both are located by reference to degrees of longitude and latitude.

front footage

As a rule of thumb, the first number listed in the dimensions of a property is the "word".

A broker listed a rectangular parcel of vacant land that measures 195 feet by 425 feet. If the owner wants to sell the land for $35,000 per acre, what is the list price? A) $82,875 B) $66,500 C) $85,000 D) $68,250

B) $66,500 195 ft. × 425 ft. = 82,875 sq. ft. ÷ 43,560 = 1.9 acres × $35,000 = $66,500 LP

Which of these is the earliest form of legal description used in the United States, is still the primary method of describing property in the original 13 colonies, and is considered the BEST to use for real estate contract and deeds in North Carolina? A) Tape survey B) Metes and bounds C) Reference to recorded plat D) Rectangular survey

B) Metes and bounds This description starts at a definitely designated place called the point of beginning (POB) and proceeds around the boundaries of the tract (clockwise or counterclockwise) by reference to linear measurements and compass directions, referred to as calls.

T/F: A survey is obtained to verify lot dimensions and identify easements and encroachments.

True; A surveyor will determine the location and dimensions of property, as well as potential title matters such as easements and encroachments.

T/F: Deeds and sales contracts contain references to legal descriptions of property.

True; Deeds, sales contracts, and other important real estate documents must contain an accurate legal description.

metes-and-bounds (boundary) description

"Word" is the earliest form of legal description used in the United States and is still the primary method of describing property in the original 13 colonies and is considered the best to use for real estate contract and deeds in North Carolina. It makes use of the boundaries and measurements of the land in question. This description shows the boundaries of the parcel and where they meet.

To calculate the cost of a parcel of land of 17,500 square feet at $60,000 per acre, convert the cost per acre into the cost per square foot before multiplying by the number of square feet in the parcel:

$60,000 per acre ÷ 43,560 square feet per acre = $1.38 (rounded) per square foot 17,500 square feet × $1.38 per square foot = $24,150

Rectangular Survey System real estate characteristics:

-Also called the government or geodetic system. -Base lines run east and west. -Strips of land called ranges, township squares, and sections. -Principal meridians run north and south.

Each township is given a legal description. The township's description includes the following:

-Designation of the township tier in which the township is located -Designation of the range strip -Name or number of the principal meridian for that area

Metes and bounds real estate characteristics:

-Linear measurements and compass directions, referred to as calls. -Starts at a defined place called the point of beginning. -Boundaries and measurements. -Monuments used to establish boundaries. -Measurements often use the words 'more or less'.

Reference to a Recorded Plat real estate characteristics:

-Uses subdivisions for descriptions. -Records placed in the registry of deeds of the county where the land is located. -Also called lot-and-block system.

The reference to arecorded plat (lot-and-block) is

-approved by the governing body, and -filed in public records of the county where the land is located.

Real estate professionals are often called upon to determine the size or area of a parcel or of a structure. They should be able to:

-determine square footage (for all types of structures); -verify the area (acreage, square footage) of lots/parcels of land; -determine the volume (cubic feet) of buildings; -convert acreage to square footage and vice-versa; -calculate square yards; -determine the cost or price per square foot, acre, square yard, front foot; and -calculate the acreage of a portion of a section of land (Government Survey System).

The government rectangular survey system

-divides land into rectangles; -is measured from the intersection of principal meridians and base lines; -is referenced by degrees of longitude and latitude; -uses township lines, which run east to west parallel to and counted from base lines that are -->6 miles apart, -->in units called townships of 36 square miles each, -->in rows of townships called tiers, and -is arranged so each township is divided into 36 sections of one mile square (640 acres), counted from northeast and running right to left, then left to right, et cetera; and -uses range lines, which run north to south parallel to (and counted from) principal meridian, that are -->6 miles apart and -->in rows called ranges.

The metes-and-bounds method

-measures distances (metes); -starts from a point of beginning (POB); -follows compass directions or angles (bounds); -arrives at the point of ending (POE), which must be the same as the POB; and -uses monuments (fixed objects or markers) to identify the POB and corners or places where boundary lines change direction.

To calculate square footage in acreage, it is necessary to know that an acre of land consists of:

43,560 square feet.

A legal description states the following: "Starting at the corner of Elm Street, go 45 feet east to Happy Street, then 50 feet south to Ash Street, then 45 feet west to Adams Avenue, and then 50 feet to the point of beginning." The legal description has how many square feet? A) 2,250 B) 250 C) 2,500 D) 22,250

A) 2,250 L × W = area The property boundaries create the measurement needed: 45 ft × 50 ft = 2,250.

A method of property description using monuments, distances, and compass directions is A) the maps-and-plats method. B) the metes-and-bounds method. C) the lot-and-block method. D) the rectangular survey method.

B) the metes-and-bounds method. The metes-and-bounds method of legal description uses distance and direction measurements to describe the boundaries of a property.

If a survey is not conducted as part of a sales transaction of property, what protection excludes any defects that may have been found as part of a survey? A) Homeowners insurance B) Backup insurance C) Private mortgage insurance D) Title insurance

D) Title insurance When underwriting a real estate loan, the lender might require an up-to-date survey of the collateral property to make sure that there are no encroachments on the property because an encroachment could render the title to the property unmarketable. Encroachments could cross boundary lines, easements, or setbacks.

township tiers

These township lines form strips of land called "word". These "word" are designated by consecutive numbers north or south of the base line. For instance, the strip of land between 6 and 12 miles north of a base line is Township 2 North.