Escrow & TitleIntermediateDelaware Exam

What is the difference between 'actual notice' and 'constructive notice' in Delaware real property law?

AActual notice is given in writing; constructive notice is given verbally
BActual notice is direct personal knowledge of a fact; constructive notice is legal notice imputed to a person because the information is available in public recordsCorrect
CActual notice applies only to recorded documents; constructive notice applies to unrecorded interests
DBoth terms mean the same thing in Delaware property law

Why Actual notice is direct personal knowledge of a fact; constructive notice is legal notice imputed to a person because the information is available in public records Is Correct

Answer B: Actual notice is direct personal knowledge of a fact; constructive notice is legal notice imputed to a person because the information is available in public records

Actual notice is direct, personal knowledge of a fact (you personally know the property is subject to an easement). Constructive notice is knowledge the law presumes you have because the information is available in public records — recorded deeds, mortgages, liens, and easements provide constructive notice to all subsequent purchasers.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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