Constructive Notice

Notice of certain facts that may be discovered by due diligence or inquiry into a public record; a legal presumption that a person is responsible for knowing these facts. The proper recording of a document gives constructive notice to the world of the document’s existence and contents. Possession of property also imparts constructive notice of the rights of the party in possession. Examples of rights of parties in possession are rights under an unrecorded deed, contract for deed, lease-option, and rights of adverse possession. Constructive notice is also referred to as legal notice and is in contrast to actual notice, which is express or direct knowledge acquired in the course of a transaction.