Also known as: notice doctrine · actual notice · constructive notice · inquiry notice
Written by attorneys · grounded in primary & secondary sources — see below
A legal principle under which subsequent purchasers of real property receive constructive notice of prior unrecorded interests when those interests appear in the chain of title. The principle determines priority under recording acts by protecting only those buyers who take without actual or inquiry notice and who record their own interest. It limits the scope of what recorded documents bind a purchaser to those appearing in the direct chain through which title is traced.
Diana Delgado buys Blackacre from a seller whose deed is recorded but omits an earlier unrecorded mortgage held by Derek Douglas. Diana conducts a title search that reveals only the recorded deed and pays value without actual knowledge of the mortgage. When Douglas later records, Diana's recorded interest prevails because she took without notice of the prior claim.
Delilah Duran purchases Whiteacre after searching only the deeds running from the common grantor through her immediate seller. An easement granted by the common grantor to a neighboring stranger appears in a separate recorded deed. The easement does not bind Duran because it lies outside the chain of title through which she claims ownership.
Select any source to read its text and confirm it supports the definition.
Diego Duarte buys Greenacre for value and records first under a notice recording act. Visible signs of an unrecorded lease to Dolores Diaz were present at the time of purchase. Duarte cannot prevail over Diaz because the visible use placed him on inquiry notice of the prior interest, destroying bona fide purchaser status.
A trust beneficiary receives only published notice of a judicial accounting proceeding. The court later determines that publication alone fails to satisfy due process when the beneficiary's identity and address are known. The accounting order does not bind the beneficiary because the chosen method was not reasonably calculated to provide actual notice.
A mineral owner receives statutory notice that a lease will lapse for nonproduction unless action is taken within a fixed period. The owner takes no steps after receiving the notice. The lease terminates because the statutory notice satisfied the requirement of informing the owner of the impending loss of interest.
A creditor obtains a judgment and records it against land owned by a nonresident debtor. No personal service or other notice reaches the debtor. The judgment lien cannot be enforced against the land because the proceeding lacked notice reasonably calculated to inform the owner of the claim.
The purchaser must prove purchase for value, good faith, and lack of actual or constructive notice of the prior unrecorded interest at the time of acquisition. Failure on any element prevents the purchaser from gaining priority over the earlier interest.
Supporting sources
No. Only instruments appearing in the chain through which the purchaser traces title give constructive notice. An easement or covenant recorded in a separate chain from a common grantor to a stranger does not bind a later purchaser.
Supporting sources
A purchaser who has facts that would prompt a reasonable investigation is charged with notice of what the investigation would reveal. Visible use or other circumstances placing the purchaser on inquiry prevent bona fide purchaser status even without actual knowledge of the prior claim.
Supporting sources
…cannot be subjected to a court's judgment unless reasonable and appropriate efforts have been made to give the property owners actual notice of the action. Schroeder v. City of New York , 371 U. S. 208 (1962); Walker v. City of Hutchinson , 352 U. S. 112 (1956); Mullane v. Central Hanover Bank & Trust Co. , 339 U. S.…