Notice Statute Some states have real estate "notice" statutes for recording property ownership. These notice statutes invalidate a buyer's property ownership if she had notice of another owner prior to her purchase. What Qualifies as Notice? Courts qualify notice as one of three types: - Actual notice ¿ actual knowledge either by word of mouth or possession of property that a previous conveyance (transfer of ownership) had occurred.
- Constructive notice - when recorded documents are put on public record, knowledge of a previous conveyance is assumed.
- Inquiry notice - if knowledge of some fact would put a reasonable person on notice and that he should investigate the matter further.
Even if a document is defective in some way (either on its face or defectively recorded) it would still constitute as notice (either constructive or inquiry) since buyers are charged with the concept of good faith to make a reasonable investigation when suspicions are aroused. What Does it Mean when the State Statute Requires No Notice Before Recording? In states that follow the Recording Acts, the notice statutes are a requirement in order to validate and protect a buyer's property ownership. A buyer that has no notice (either actual, constructive or inquiry) is considered a ¿bona fide buyer¿ under the Acts. Therefore, having good title can hinge upon whether the purchaser had notice of an earlier conveyance when he purchased the property.
Do I Need to Consult With an Attorney Before Recording? Because the laws of each state differ greatly when it comes to real estate, an experienced lawyer in your area can be of great value to you. The notice statute and the Recording Acts are difficult to understand, and a lawyer can make sure that you comply with the laws to ensure that your property interest is ¿bona fide¿ and made secure against all others. |
