Lot Merger

[kwilson]

The City of San Jose states that in order to complete a Lot Merger, we need to prepare a Grant Deed. The particular project involves one owner who has one legal parcel that was created by two separate deed parcels. The legal description of the existing legal parcel is separated into two parcels and the City required the lots be merged before a building permit was issued.

They sent me an example of another Lot Merger recorded as a Grant Deed. The owner is granting the parcel to himself and using the new merged Legal Description. I always understood that you cannot grant to yourself.

Any thoughts on this? The normal process is a recorded document prepared by the City or County stating that the following legal description is now one legal parcel and its just called a Lot Merger.

[CBarrett]

They do it as a mechanism of providing constructive notice to perfect title, so someone doesn't take the old description and neglects to pay attention to the lot merger. This way, new description becomes a part of the grantor grantee index.

Similar to perfecting deeds with lot line adjustments, even if the owner is the same, they want perfecting deeds, because (I get little fuzzy here regarding title matters, and prefer to get a title officer or a attorney opinion), lot line adjustment moves the line, but it doesn't change underlying title. Much like the subdivision map, creates new parcels, but they are still under one owner, although recording a subdivision does impart a constructive notice as well.

This is the gray area where some attorneys will tell you that you as a surveyor should not be handling the matters of title. I would expect this transaction has a title officer - get their opinion. Handling matters of title is their job.

What I would try and do is prepare the legal description and then hand it over to the Title Co. to prepare the rest of the deed.

[ekparian]

Is recording a new deed required by CA state law to "perfect title" after the County records the Lot Merger?
I believe that recording new deeds after recording a Lot Line Adjustment (between multiple owners) is required (but cannot find the source) to "perfect title".

[Ric7308]

GC 66412(d) "...The lot line adjustment shall be reflected in a deed, which shall be recorded." Doesn't this require it?

[ekparian]

Thank you Ric!
Is a new deed required to perfect title on a a Lot Merger?

[Ric7308]

That, I believe is dependent upon the process used by the specific local public agency. Some use the LLA process for that. Others on the forum who are more versed in mergers than I should be able to advise you on that.

[PLS7393]

It is not uncommon to require a new deed for a Lot Merger or Lot Line Adjustment, as identified.
Many city's (not all) have been poor managers of the legal process to execute a Lot Merger or LLA over the years.
When a city approves the document, it does not become a legal parcel, but only gives that agencies blessing that it satisfies City Codes. A separate document is still needed to be recorded with the County Clerk to legalize the parcel.

Ken, pertaining your concern about being able to transfer a parcel to yourself: That's where Title Companies come in and assist. They have always been able to assist, and in the old days it was called being a "middle man" to make it happen and execute constructive notice.

Most Lot Mergers and LLA documents are controlled and processed through the Planning Dept. and in my opinion when a Lot Merger or LLA is "Approved" without the City Surveyor's signature (or involvement) Section 8761(e) of the PLS Act is potentially in violation. Some cities have agreed and get the City Surveyor involved, while others including counties have only stuck their nose up to me. Yes I have first hand experience in this with a county I was once working for, but they decided to continue poor decisions/practice.

When I was doing a lot of ALTA's, it was not uncommon to find out a new legal description was never prepared with a Lot Merger or LLA. This always brought a nightmare to the Title Officer involved with a land transaction, because technically the process was never finalized. I have always blamed the surveyor involved with a Lot Merger or LLA for not working with their client to educate them and make sure the new legal description was recorded associated with the City Approved document.

Some cities (like Hayward) requires a full size topographic survey (not to exceed 18" x 26") for their review associated with a LLA. This gets reduced to 8.5" x 11" and attached to document, while still being readable. They even require a "Notation of expiration one year after date of approval if the revised lots are not a matter of record".

San Jose has actually cleaned up and developed a good process/policies for a Lot Merger or LLA to be executed so the homeowners do not get mislead to thinking their land was merged or adjusted, when it truly had not.