PSI Oklahoma Real Estate Practice Test

When writing a real estate contract, the legal description should not be based on?

1. The property's history

2. The street address

3. Navigational coordinates

4. Survey measurements

The correct answer is: The street address

A real estate contract requires a precise legal description of the property to ensure clarity about what is being bought or sold. The legal description needs to be specific and unambiguous. The legal description should not be based on the street address because a street address can sometimes be vague or inaccurate. For example, multiple properties might share the same street name but differ in other characteristics such as lot numbers or subdivisions. An address can change over time due to city planning or development, which could lead to confusion about the property's actual location. In contrast, legal descriptions based on navigational coordinates, survey measurements, and property history (when appropriately documented) provide concrete and reliable frameworks for defining property boundaries. Survey measurements give exact demarcations, while navigational coordinates can pinpoint a location in a manner that is less prone to ambiguity. Hence, relying solely on a street address can lead to errors and disputes, making it inadequate for legal purposes.