Question

What is the difference between actual and constructive notice? And what are three types of recording statues, and how do they differ?

Answer 1

Actual Notice: An actual notice is basically a legal notice signed by the plaintiff to sue the defendant. An actual notice is delivered in hand to the defendant that he is now a part of a lawsuit. It also involves a third party (e.g. Police) and they also get a copy of the actual notice.

Constructive Notice: When the defendant does not receive an actual notice, the court allows to have a constructive notice printed instead. The defendant, may or may not have the knowledge of the lawsuit as it is not directly delivered, but the court assumes that he has the knowledge as it is now printed in a public forum (e.g, Newspaper)

Recording Statues:

Notice: A notice as mentioned above is a way to inform the defendant about the lawsuit, wheather directly (Actual notice) or indirectly (Constructive notice)

Race acts: In terms of real estate, it means that the person who records the interest first, wins. That is if first person has shown interest , but he fails to record before the second person, then the second person prevails

Race Notice: This is basically a combination of race and notice, that is if a second person is not aware of the interest of the first person in the real estate, and he records it before that of the first person, then he prevails.