So, what exactly is a “legal description” and why is it so important?
Transcript:
Hey, everybody! Casey Denman here with TaxSaleAcademy.com. I’m actually coming to you today from our studio as I shoot some amazing videos for the Tax Sale Academy.
And while I was here, I figured I’d go ahead and answer our weekly question segment. This week’s question actually came in via email and it’s from Ashley. And Ashley says, “What exactly is a legal description?”
Ashley, great question here. A legal description is a formal way that is universally recognized to describe a parcel of real estate.
Let me boil this down a little bit further for you. It’s basically a way to describe dirt. Every piece of property that you see in the United States is described by a legal description in some manner or another. It might be a measure description where it might be the Southwest One Quarter or the Southeast One Quarter and that kind of thing. It could be a lot and block where it says Block No. 5, Lot No. 6 of the Jones County Subdivision or whatever it may be. There are different types of legal descriptions, but a legal description is basically a way to describe a parcel of real estate or a piece of dirt.
Now, legal descriptions are used on all sorts of things, such as deeds, of course. When you sell somebody a piece of property, you’re selling them the legally described real estate. Also, mortgages. Mortgages that are encumbering that legally described real estate. Also, stuff such as liens and all sorts of other stuff.
Now, most importantly, a legal description is what you are buying at a tax sale auction. You’re not buying an address. You’re not buying what a buddy told you was for sale. You’re not buying a picture of a house or something. You’re actually buying a legal description. You’re buying that legally described parcel of real estate.
And a lot of people make mistakes here because they see a picture or they see an address or something. They go straight for that picture, they go straight for that address and they think that’s what they’re buying. No. You’re buying that legal description. So you need to make sure that if you’re buying a house, that house sits on the piece of property described by that legal description.
Ashley, I hope this has answered your question. If you have a follow-up question or if anybody else has any questions about tax sale investing, head on over to my website at TaxSaleAcademy.com. You can do that by clicking the blue link at the bottom of this video. Once you’re there, submit your question. And it’s very possible I’ll give you a video response just like this one.
Take care, folks! Bye-bye.