Contents
Actual Notice Real Estate
Actual vs Constructive Notice
Any interested party can claim that they should be considered first over prior purchases, liens or encumbrances, and even judgments as far as the purchase of real property is concerned. This can cause conflicts which may be made even worse by the conflicting rules that apply in this situation. You need a Houston Real Estate Attorney Free Consultation so that an experienced lawyer can guide you so that your rights are protected.
Understanding Bona Fide Purchaser
Inquiry Notice
The bona fide Purchaser or encumbrancer for value is a person or entity that purchases a property without any knowledge of defects or encumbrances on the property. They do not receive any notice about the state of the property before they buy it. To be sure there are no issues with the property, the bona fide purchaser can seek legal determination through a quiet title action to ensure that there are no liens, mortgage, or other adverse interests on the property.
So, a bona fide purchaser purchases the property in good faith without actual or constructive notice.
What Is Actual Notice?
Imputed Notice Real Estate
When a party wants to buy a property with factual knowledge about the defects of the title of the property and other issues, they are said to have actual notice of the property’s defects and so on. The information they have about the property is not second-hand but factual. When you have actual notice of a property, your knowledge about the facts of that property will be confirmed when you make inquiries about that property.
You cannot be considered a bonafide purchaser if you have actual notice about the circumstances of a property you bought.
Constructive Notice Explained
Constructive Notice Of Title
But a person is said to have constructive notice if all of the details about defects or other interest in the property are all recorded and available for anyone to access at the county recorder’s office. So, if you bought a property without doing research about defects in the title, and there is information about these defects that you should have known through research, you cannot be considered a bona fide purchaser. This is because you are considered to have had constructive notice about the defects, liens, and other adverse interests in the property.
The legal concept that requires the buyer to make inquiries before buying a property is called an inquiry notice. This concept holds that it’s the responsibility of a buyer to seek complete information about the condition of real property before purchasing it. Doing this helps the buyer protect their interest because the information they get helps them make a decision on whether or not to proceed and purchase the property.
What Is Imputed Notice?
Constructive Notice Example
When a buyer has access to information about the condition of the property they intend to buy, they are assumed to have had imputed notice about that property. For example, if you are using an agent to find the house you want, the agent can be seen as a source of information about the property. Your agent is required by law to disclose information about the property you intend to buy.
Contact an experienced real estate lawyer to help you understand your rights as a buyer of real estate.
Find Real Estate Lawyers Near Me