A legal description is the precise location and measurement of real property. While an address is often used to locate a property, legal descriptions are used when transferring title because they’re more accurate. Unlike an address, it’s a unique identifier. It’s especially important when purchasing vacant lots with no address.
The legal description is referenced during the title search to ensure no encumbrances are on the property before completing the transaction and issuing a title insurance policy.
The legal description should also give a surveyor enough information to find and measure the land’s boundaries.
The legal description provides accuracy and consistency over time, serves to prevent boundary disputes and problems with chain of title, and facilitates the transfer of ownership. A title insurance policy would be meaningless if you didn’t know what property it insures. The legal description clarifies exactly what parcel of land is conveyed to a new owner. If a boundary dispute arises, the court will reference the legal description to determine if there are any encroachments or easements.
It also affects how the property is assessed and taxed.
A legal description is required for:
However, old legal descriptions may be passed from one chain of title documents to another and an incorrect or incomplete description may be conveyed from one unwitting owner to the next. Unplatted vacant properties often present the most prominent challenges related to legal description errors.
Human error when drafting a document or splitting a parcel of land may also cloud the title with an inaccurate legal description. To avoid inheriting an error, buyers should consider conducting a new land survey if one hasn’t been obtained recently.
If there’s a suspected issue with the legal description, the title company may require a land survey to confirm the legal description is accurate and it closes – meaning the starting point described in the legal description meets with the endpoint.
Resolving errors with the legal description can delay a real estate closing and cost additional time and money, but ignoring them can jeopardize an owner’s claim to the land.
All the legal documents related to the property and real estate transaction should have the exact same legal description. If any discrepancies are found, it’s a red flag to investigate further.
Examine the legal description found in these documents:
Knowing where to find and how to read a legal description is a useful skill for anyone buying property, especially for real estate investors. Protect your investment by requesting a new survey and removing a survey exception from a title policy when appropriate. If you have any questions or concerns about a legal description, turn to your title company or real estate attorney for help. It will take the expertise of professionals to resolve these kinds of errors. At Peak Title Professional, our title professionals have decades of experience clearing title defects. Reach out to our team if you have any questions.
The information provided in Peak Title Professionals, does not, and is not intended to, constitute legal advice. All content is for general informational purposes only and is not intended to provide a complete description of the subject matter. Specific processes will vary based on applicable law. The title and closing process will be handled by a third-party attorney to the extent required by law. Product offerings vary by jurisdiction and are not available or solicited in any state where we are not licensed.
