California Real Estate Principles, 9th Edition

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©2011 Cengage Learning
California Real Estate
Principles
Chapter 2
Part I: Legal Descriptions,
Methods of Acquiring Title, and
Deeds
©2011 Cengage Learning
Chapter 2
1.
2.
3.
4.
5.
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
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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.
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?
METHODS OF LAND
DESCRIPTION
1.
2.
3.
Lot, Block and Tract
Metes and Bounds
U.S. Government
Survey
- Sections
- Townships
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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
50’
50’
A
150’
1
150’
7
2
8
B
50’
3
50’
4
50’
5
11
50’
6
12
9
10
C
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
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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
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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.
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NW
SW
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NE
SE
Base (parallel) and
Meridian (longitude) lines
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U. S. Government survey
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California
Base & Meridian
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U.S. GOVERNMENT SURVEY SYSTEM
(Locating Townships)
NORTH
T4N
T3N
T2N
R4W R3W R2W R1W T1NR2E R3E R4E
T1S
WEST
Initial Point
EAST
T2S
T3S
T4S
Principal Meridian
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SOUTH
Base Line
U.S. GOVERNMENT SURVEY
SYSTEM (Sections in a Township)
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U.S GOVERNMENT SURVEY SYSTEM
(Acres in a section)
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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?
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Of Section 12 =
of the S E ¼ =
of the West ½ =
N½=
acres
640/4=
160/2 =
80/2 =
Of Section 20 =
acres
640 AND = +
Of the S ½ =
640 / 2 =
320
N½=
320 / 2 =
160
OR
OR
640 /4 /2 /2
=
640 /2 /2
640
160
80
40
40 acres
= 160 acres
Of Section 17 =
acres
640
Of the NE ¼ =
640 / 4 =
160
Of the NE ¼ =
160 / 4 =
40
NE ¼ =
40 / 4 =
10
OR
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640 / 4 /4 /4
= 10 acres
TOTAL
AND = +
210 ACRES
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
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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.
b.
c.
d.
160 acres
180 acres
200 acres
210 acres
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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
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ASSESSOR’S MAP
APN
Assessor’s Map
Book 34
Page 18
Assessor Parcel
Numbers shown in
circles
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.
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Lots 50 through 57 of
Tract 2118, filed in
Recorded Maps, Book
63, page 39
LEGAL
5 Ways to Acquire Real Property
1. By will . . . Testate
2.
By succession . . . In testate
3.
By accession
4.
By occupancy
5.
By transfer
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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
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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
law of succession.
 Law of succession = court distribution of
decedent’s property
 Administrator/trix = named by the court.
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the
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
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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.
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INTESTATE
SUCCESSION
SEPARATE PROPERTY
Surviving Spouse or registered domestic partner
½ Spouse
Child
Surviving spouse or registered domestic partner
Children
1/3 Spouse
Children
No spouse or registered domestic partner
Children
Equal shares too all children
One Child
½
Two or More
COMMUNITY PROPERTY
All to Surviving Spouse – Children get nothing
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2/3
Remember
 Registered Domestic Partners have rights equal
to husband & wife in California due to Domestic
Partnership Law since January 2005.
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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
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Title by Occupancy
 Abandonment
 Adverse Possession
One person gains ownership of
another’s real property by
occupying the parcel of land
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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.
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Title by Transfer
 Private grant (deed)
 Public grant (patent)
 Gift (no compensation)
 Public dedication (give land to government
 Court action (foreclosure, escheat, eminent
domain)
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Valid DEED
1. In writing
7. Signed by all grantor(s)
2. Describe parties 8.Words of Conveyance
3. Competent
grantor
4. Capable grantee
5. Property
described
6. Granting clause
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9. Grantor acknowledges
the content of the
document
10. Delivery to grantee
11. Acceptance by grantee
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
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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.
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RECORDATION
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
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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
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