What does the term "constructive notice" refer to in real estate?

Constructive notice in real estate refers to the concept that information is available to the public and can be presumed to be known, whether or not an individual has actually seen or understood that information. This typically involves acts such as recording property documents—like deeds, mortgages, and liens—at the county recorder’s office. When a document is recorded, it serves as public notice of the property rights associated with that document. This means that anyone interested in the property is presumed to be aware of that recorded information and cannot claim ignorance regarding those rights.

For instance, if someone buys a property and the deed is properly recorded, future purchasers are expected to have awareness of that deed and any restrictions or claims that may come with it, even if they did not directly see it. Thus, B accurately captures the essence of constructive notice by emphasizing its role in providing public awareness of property rights, ensuring that transactions are transparent and informed.