Legal Description

What is a Legal Description?

A legal description is a precise, legally sufficient description of a parcel of land that uniquely identifies it from all other parcels. Unlike a street address, which is used for mail delivery and general location, a legal description is a detailed, unambiguous statement that defines the exact boundaries and location of a property. It is essential for all real estate transactions, including deeds, mortgages, leases, and property tax assessments, ensuring that there is no confusion about which specific piece of land is being transferred or encumbered.

The primary purpose of a legal description is to provide a clear and indisputable identification of a property for legal and official records. It forms the foundation of property ownership and transfer, preventing disputes over boundaries and ensuring that title can be conveyed accurately. Without a proper legal description, a property transaction cannot be legally valid or recorded.

Types of Legal Descriptions

There are three primary methods used to create legal descriptions in the United States, each suited to different types of land and historical contexts. Understanding these methods is crucial for any real estate investor.

Metes and Bounds

The metes and bounds system is one of the oldest methods, primarily used in the original 13 colonies and states that were not part of the Public Land Survey System. It describes property boundaries by referring to physical features (bounds) and directions and distances (metes) from a known point of beginning (POB).

Key characteristics of metes and bounds descriptions:

• Point of Beginning (POB): Every description starts and ends at a clearly identifiable point, such as a monument, a street intersection, or a specific survey marker.
• Calls: Each segment of the boundary is described by a "call," which includes a direction (e.g., North 45 degrees East) and a distance (e.g., 150 feet).
• Monuments: Natural (trees, rivers, rocks) or artificial (iron pins, concrete markers) objects used as reference points. Artificial monuments are generally preferred for accuracy.
• Closure: A properly written metes and bounds description will always return to the point of beginning, forming a closed perimeter.

Example: "Beginning at an iron pin located at the intersection of Main Street and Oak Avenue; thence North 90 degrees East 200 feet to a concrete monument; thence South 0 degrees East 100 feet to a large oak tree; thence South 90 degrees West 200 feet to an iron pin; thence North 0 degrees West 100 feet to the Point of Beginning."

Lot and Block (Plat Map System)

The lot and block system, also known as the recorded plat system, is commonly used for properties in urban and suburban areas, particularly in subdivisions. When a developer subdivides a large tract of land, they create a detailed map called a plat map (or subdivision map). This map shows the individual lots, blocks, streets, easements, and other features, assigning a unique lot and block number to each parcel.

Key elements of lot and block descriptions:

• Lot Number: A specific number assigned to an individual parcel within a block.
• Block Number: A larger section of the subdivision containing multiple lots.
• Subdivision Name: The official name of the planned community or development.
• Plat Book and Page Number: The reference to where the recorded plat map can be found in the public records of the county.

Example: "Lot 15, Block 3, of the Sunny Meadows Subdivision, according to the plat thereof recorded in Plat Book 27, Page 42, of the Public Records of Orange County, Florida."

Government Survey System (Rectangular Survey System)

The Government Survey System (GSS), also known as the Rectangular Survey System or Public Land Survey System (PLSS), was established in 1785 to survey and describe land in the vast, undeveloped territories of the United States. It covers most of the land west of the Ohio River and south of the Mason-Dixon Line, excluding the original 13 colonies and a few other areas.

This system divides land into a grid of townships and ranges, based on principal meridians (north-south lines) and base lines (east-west lines).

Key components of the GSS:

• Principal Meridians and Base Lines: Reference lines that intersect to form the starting point for surveys in a given area.
• Townships: Square parcels of land, approximately six miles by six miles (36 square miles), created by intersecting township lines (running east-west, parallel to the base line) and range lines (running north-south, parallel to the principal meridian). Townships are identified by their township number (north or south of the base line) and range number (east or west of the principal meridian).
• Sections: Each township is divided into 36 sections, each approximately one mile by one mile (640 acres). Sections are numbered 1 through 36, starting from the northeast corner and moving west, then south, then east, in a serpentine pattern.
• Subdivisions of Sections: Sections can be further divided into halves (320 acres), quarter-sections (160 acres), and even smaller parcels (e.g., the Northwest Quarter of the Southwest Quarter of Section 10).

Example: "The Northwest Quarter of the Southwest Quarter of Section 10, Township 3 North, Range 5 West of the 6th Principal Meridian."

Why Legal Descriptions are Crucial for Investors

For real estate investors, a clear understanding of legal descriptions goes beyond mere academic knowledge; it's a practical necessity for successful and secure transactions.

Unambiguous Property Identification

A legal description ensures that the exact parcel of land being bought, sold, or leased is precisely identified. This is critical for:

• Deeds and Mortgages: Every deed conveying ownership and every mortgage securing a loan must contain an accurate legal description to be valid.
• Surveys: Professional land surveys rely on the legal description to mark out the property boundaries on the ground.
• Title Insurance: Title insurance companies use the legal description to research the chain of title and ensure there are no undisclosed encumbrances or claims.

Avoiding Boundary Disputes

Clear legal descriptions minimize the risk of disputes with neighboring property owners over boundary lines, fences, or shared resources. An accurate description, often verified by a current survey, provides definitive proof of where one property ends and another begins.

Facilitating Legal and Financial Transactions

From securing financing to obtaining permits for development, the legal description is a foundational piece of information. Lenders require it for loan documents, local governments for zoning and building permits, and attorneys for drafting contracts and resolving legal issues. Any discrepancy can halt a transaction or lead to costly legal battles.

How to Interpret a Legal Description

Interpreting a legal description can seem daunting, but by following a systematic approach, investors can understand the property's boundaries and characteristics.

1. Identify the System: First, determine which type of legal description is being used (Metes and Bounds, Lot and Block, or Government Survey System). This will dictate your approach.
2. Locate the Point of Beginning (Metes and Bounds): For metes and bounds, find the POB. This is your starting reference point. Then, follow each "call" (direction and distance) sequentially, visualizing the path around the property. Pay close attention to bearings (e.g., N 45° E) and distances (e.g., 100 feet).
3. Consult the Plat Map (Lot and Block): If it's a lot and block description, locate the referenced plat map at the county recorder's office. The plat map visually depicts the exact dimensions, easements, and other features of the specific lot and block within the subdivision.
4. Deconstruct the GSS (Government Survey System): For GSS descriptions, work backward from the smallest division to the largest. For example, in "NW 1/4 of SW 1/4 of Section 10, T3N, R5W," start by finding Section 10, then the SW 1/4 of that section, and finally the NW 1/4 of that quarter-section.
5. Cross-Reference with a Survey: Always compare the legal description with a current land survey. A survey provides a visual representation of the property lines, improvements, and any encroachments, ensuring the legal description accurately reflects the physical reality.
6. Seek Professional Assistance: If the description is complex or unclear, consult a licensed land surveyor or a real estate attorney. Their expertise is invaluable in preventing costly errors.

Real-World Examples and Interpretations

Let's look at how these descriptions appear in practice and what they mean for an investor.

Example 1: Metes and Bounds for a Rural Parcel

Description: "A parcel of land situated in the County of Franklin, State of Georgia, described as follows: Beginning at a concrete monument marking the Northeast corner of the intersection of State Highway 17 and County Road 101; thence North 85 degrees 30 minutes East along the northern right-of-way of County Road 101 for a distance of 450.00 feet to an iron pin; thence North 05 degrees 00 minutes West 300.00 feet to a large granite boulder; thence South 85 degrees 30 minutes West 450.00 feet to a point on the eastern right-of-way of State Highway 17; thence South 05 degrees 00 minutes East along said right-of-way 300.00 feet to the Point of Beginning. Containing 3.10 acres, more or less."

Interpretation for an Investor:

• This description clearly defines a rectangular parcel. The investor knows the property has frontage on both State Highway 17 and County Road 101, which could be valuable for access or commercial potential.
• The use of specific monuments (concrete monument, iron pin, granite boulder) provides physical reference points for a surveyor.
• The acreage (3.10 acres) gives a general size, but the precise metes and bounds are the legal definition of the boundaries.

Example 2: Lot and Block for a Residential Property

Description: "Lot 7, Block B, of the 'Grand Oaks Estates, Phase II' subdivision, according to the plat thereof recorded in Plat Book 12, Page 34, of the Public Records of Hillsborough County, Florida."

Interpretation for an Investor:

• This is a straightforward description for a property within a developed subdivision. The investor would easily locate the plat map at the Hillsborough County Clerk's office by referencing Plat Book 12, Page 34.
• The plat map would show the exact dimensions of Lot 7, its relationship to surrounding lots and streets, and any easements (e.g., utility easements) that affect the property.
• This system provides high certainty regarding boundaries, as they are pre-defined and recorded.

Example 3: Government Survey System for Agricultural Land

Description: "The Southeast Quarter of the Northwest Quarter (SE 1/4 of NW 1/4) of Section 22, Township 15 North, Range 8 East, of the Third Principal Meridian, located in Sangamon County, Illinois."

Interpretation for an Investor:

• This description identifies a 40-acre parcel (160 acres / 4 = 40 acres). The investor can pinpoint its location within Section 22, which is part of a larger Township 15 North, Range 8 East.
• This system is common for large tracts of land, particularly in agricultural or undeveloped areas. It provides a standardized way to divide and describe vast expanses of land.
• Understanding the GSS helps in assessing the property's context within a larger grid, which can be important for land development, mineral rights, or agricultural planning.

Common Challenges and Best Practices

While legal descriptions are designed for clarity, challenges can arise. Investors should be aware of these and adopt best practices.

Ambiguity and Errors

Older metes and bounds descriptions, especially those relying on ephemeral natural monuments (e.g., "to the old oak tree"), can be ambiguous. Clerical errors in recording or transcribing descriptions are also possible. Such errors can lead to title defects, boundary disputes, and invalidate transactions.

Importance of a Current Survey

Always obtain a current land survey during due diligence. A licensed surveyor will physically locate and mark the property boundaries based on the legal description, identifying any discrepancies, encroachments, or unrecorded easements. This is especially critical for properties with older descriptions or those in rural areas.

Professional Assistance

For complex transactions or properties with unusual legal descriptions, engage a real estate attorney and a land surveyor. They can interpret the description, identify potential issues, and ensure that the property being purchased is precisely what the investor intends.

Verifying the Legal Description

Before closing on any property, ensure the legal description on the purchase agreement matches the one on the deed, title insurance commitment, and any financing documents. Inconsistencies can cause significant delays or even invalidate the transaction.