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Karthik Subbaraj explains that every parcel in California has an Assessors Parcel Number (APN) with a unique string of digits including a lot, block, and track number. A legal description, not just an address, is required for real estate sales, making the APN crucial. Urban and suburban areas typically use APNs for property identification, consisting of lot, block, and tract numbers. This system is used throughout California to describe real estate in these areas.