Property OwnershipIntermediateNorth Carolina Exam

In NC, the 'doctrine of constructive notice' means a buyer is responsible for knowing:

AOnly what their inspector finds during the home inspection, a pattern seen in many similar transactions
BEverything in the public records affecting title to the property, whether or not they actually checkedCorrect
COnly defects visible during a walk-through
DInformation the seller voluntarily disclosed

Why Everything in the public records affecting title to the property, whether or not they actually checked Is Correct

Answer B: Everything in the public records affecting title to the property, whether or not they actually checked

Under constructive notice, a buyer is legally presumed to know everything that could be discovered by examining the public record — recorded deeds, liens, easements, judgments — whether or not they actually reviewed those records.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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