Escrow & Title
In Illinois, 'actual notice' of a prior property interest differs from 'constructive notice' in that:
AActual notice requires court verification; constructive notice does not
BActual notice means the party personally knows about the prior interest; constructive notice is implied by law from the public record✓ Correct
CConstructive notice is more legally powerful than actual notice
DActual notice only applies to commercial properties in Illinois
Explanation
Actual notice is direct, personal knowledge of a fact or prior interest—the party actually knows. Constructive notice is legal notice that the law implies based on publicly recorded instruments or visible facts (e.g., a tenant in possession provides inquiry notice to would-be buyers). Both forms of notice are significant in Illinois real estate: a purchaser who has actual or constructive notice of a prior unrecorded interest may not be protected as a bona fide purchaser.
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