Constructive and Actual Notice Flashcards

Constructive and Actual Notice Flashcards that next level of notice; it means the buyer is actually aware of it.the presence of the utility company's poles on the property constitute constructive notice of their easement right.Constructive noticethe legal presumption that individuals will obtain information through due diligence.Essentially, constructive notice means the information exists in the world and is discoverable by an interested party.A property owner may also give constructive notice of ownership by visibly occupying or making use of the property.Actual notice If legal interest in a property has been properly filed in the public record, that filing serves as legal constructive notice to everyone of that party's interest, but if that party fails to properly file, then that party's interest in the property may be forfeited or very difficult to claim.If a party's interest has been properly recorded (serving as constructive notice) and the buyer fails to look in the public record for claims of interest, such as a lien, then the buyer may have problems when the interested party decides to claim their legal interest.If notice is given anywhere in the public record, it is considered constructive notice.But how does the title company find this stuff out? By searching the public record for any evidence of competing claims of ownership or encumbrances.There are two

different ways these claims can be recorded: through

constructive notice and actual notice. Buyers are expected to have done enough due diligence to discover both types.If a party places their claim to a property in a public record (such as a deed), that is considered giving constructive notice that that person owns the property.