What is meant by constructive notice?

Constructive notice refers to the legal concept that provides information to the public about a property’s title status and any claims or interests in that property, typically through publicly available records. When a document related to a property, such as a deed or mortgage, is recorded with the appropriate government authority, it serves as constructive notice. This means that even if an individual has not personally seen the document, they are considered to have knowledge of it because it is accessible to the public.

This mechanism is crucial in real estate transactions as it helps protect buyers and third parties by ensuring that everyone has access to the same information regarding property titles. It supports the principle of transparency in property ownership and helps to avoid disputes related to land titles.