Escrow & Title
In New Jersey, 'constructive notice' means that a person is legally presumed to know about a recorded instrument because:
AThey were personally notified by the other party
BThe instrument is available in the public record, regardless of whether they actually looked✓ Correct
CTheir attorney reviewed the chain of title
DThe instrument was described in a newspaper advertisement
Explanation
Constructive notice is imputed knowledge—the law presumes that anyone could have discovered a recorded instrument by searching the public records. Under NJ recording acts, a purchaser cannot claim ignorance of a properly recorded instrument.
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Key Terms to Know
Chain of Title
The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
EasementA non-possessory right to use another person's land for a specific purpose.
State-Specific Concepts
Recording Requirements
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