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Bilateral Contract
To be enforceable by a court Real Estate sales contract must have:
1. Competent Parties
2. Lawful Object
3. Mutual Agreement
4. Legal Consideration
5. In Writing
6. Legal Description
What if one party fails to perform?
Breach of Contract
Where are contracts enforced?
In a Court of Law
Grant Deed
Includes title warranties by seller:
1. Not conveyed property to anyone other than buyer
2. Free from any encumbrances
• beyond those identified by seller at time of conveyance
Makes NO promise
• about what previous owners might have done with title
•Most common transfer document in California
Seller - Grantor
Buyer - Grantee
OR – gives
EE - receive
•Most common transfer document in California
Seller - Grantor
Buyer - Grantee
OR – gives
EE - receive
Special Warranty Deed
•Includes implied warranties of the Grant Deed.
•Adds future covenants where grantor:
1. Will legally defend the grantee's claim
2. Promises to take any other action which proves necessary to repair or perfect the grantee's title
•Makes NO promise
1. About what previous owners might have done with title
General Warranty Deed
• All element of the Grant & Special Warranty Deed.
•Adds warranty of good title by a seller
• from the beginning property record keeping.
• in some cases, back to Spanish Patent Deeds in 1600s.
• Grantor warrants every transfer
• Example: forged Grantor signature 3 previous property transfers 80 years ago.
Patent Deed
Government Transfer of Ownership to Private Parties
Natural People
Legal Entities
Such as Corporations or LLCs
Quit Claim Deed
Releases any interest in a property
Bargain and Sale Deeds (Foreclosure)
• Trustee’s Deed (Deed of Trust)
• Sheriff’s Deed (Mortgage)
• Tax Deed (Tax Lien Sale)
Legal Description Required for:
Creating a binding bilateral contract
Creating a valid deed
Public Recording
Constructive Notice
anyone can look up owner
Recorded in the county where the property is located
Other Uses
•Loan documents
•Basis for court rulings:
•Encroachments
•Boundary disputes
• Easements
What is a Legal Description?
•Accurately identifies the property boundaries
•Acceptable by courts of law
•Accurate and consistent over time
•The Property Fingerprint
•No descriptions are the same anywhere
Lot, block, and Tract Aka Lot, Block, Plat system •Subdivision system •Recorded map system
•When developers divide parcels of land into lots
Most common for new subdivisions
•Required by the California Subdivision Map Act to:
•record a subdivision map or plat map.
•shows location & boundaries of each separate lot
•recorded in the county recorder’s office
•in the county where the property is located
Platted property
•Subdivided from a large tract into smaller lots.
Plat map
•Identifies lot & block numbers in subdivision
Surveyor
• From the Plat Map
• Reference points (benchmarks)
• Identify lot boundaries
Subdivision Map Act – 3 Stage Process
1. Preapplication Stage
2. Tentative Map Stage
3. Final Map Stage
Metes and Bounds System
Point of beginning (POB): Where property measurement begins.
Metes and Bounds System Summary
• Starts & ends at same point
• Uses distance and direction
• Describes parcel perimeter
How many square feet In one acres?
43,560 Square Feet
Latitude Lines
GSS = Baselines
Longitude Lines
GSS = Meridians
TIERS
• Run East and West
• Boundary Lines: North and South
RANGES
• Run North & South
• Boundary Lines: West and East
Township
• 36 Square Miles
• 36 Sections
• 43,560 – Square Feet in 1 Acre
• 5,280 – Linear Feet in 1 Mile
• 36 – Square Miles in 1 Township