Mortgage on Legal Descriptiongeorge
Edward A. Haman is a freelance writer who is the author of numerous legal self-help books. He practiced law in Hawa. Read more A legal description is an accurate, legally meaningful and binding summary of a real estate valuation. You will find it on the existing deed, i.e. the last deed used to transfer the property. The legal description may have a margin, or it may be indented to make it easy to recognize. Sometimes it appears on an attachment taken by reference to the front of the document. The description of a mortgage contract or title insurance obligation must match the legal description on the deed. If a mortgage is a negotiable instrument, it is subject to Article 3 of the Uniform Commercial Code.
See Negotiable Instruments. A mortgage can be used by the mortgage as security. See Secure transactions. For properties in cities and developments, descriptions are shorter. Lot and block identifications refer to subdivision plates that contain object descriptions. Land surveyors create platforms to map the boundaries and dimensions of the property, respecting natural and built markings. Thus, a legal description could be the Happy Valley subdivision, block 3, lot 4. If the father had known of the discrepancy in the legal description before his death, he could have arranged for the farm to be divided equally among his children, as he had planned.
If you carefully read the legal description in your document and compare it with the legal description in a previous document, you can ensure that your document contains the corresponding legal description. There are three theories about who has a legal right to hypothecated property. Under title theory, the security right belongs to the mortgagee. However, most states follow the theory of lien, according to which title remains the property of the mortgage holder unless foreclosure occurs. Finally, the intermediate theory applies the lien theory until there is a default on the mortgage, after which the title theory applies. There are several methods for determining the legal description of a property: There are three different formats of legal descriptions: rectangular surveying system – also known as cut soil, plot and block, and meters and boundaries. Your legal description can be found in your title undertaking, either in Appendix A or Schedule A of Schedule B, Part II. Familiarize yourself with the jargon used when it comes to home purchases and mortgages. There are different types of legal descriptions (see below), but these distinctions are often not relevant to the document preparation process. Knowing the different types of legal descriptions is not as important as knowing where to find the legal description of the specific asset being transferred.
The best place to find a legal description is usually the last deed of ownership (the deed that transferred ownership to the current owner). The legal description is usually included in the body of the document. Legal descriptions are usually accompanied by introductory words such as „. as described below. This wording indicates that the legal description will begin shortly. The legal description is often double-indented or bolded to distinguish it from the rest of the document. See the following examples for an illustration. Neither the address nor the tax identification number is a sufficient description to transfer or encumber the property. If a correction certificate is required, the information recorded on the problematic certificate is repeated and corrected. It will contain the complete and correct legal description. Of course, it is never acceptable to use a deed of correction to add new owners to the deed, create new ownership interests, or alter the content of the deed beyond the correction in question. But if you`re curious about the main types of legal descriptions and the components they form, read on.
A rectangular survey system or legal description of the section will look like this: „In Township 2 North, Range 5 West, Boise Meridian, Owyhee County, Section 4: Southeast quarter of Northeast Quarter.“ In this type of legal description, the map is divided into sections, these sections are then divided into smaller neighborhoods and even quarter-neighborhoods. This is a simple description of Metes and Bounds. They can be much more complex in irregularly shaped plots.