What is 'actual notice' in the context of real estate?

In the context of real estate, 'actual notice' refers to information that can be directly observed or sensed by a person. This means that a person has knowledge of a particular fact because they have seen, heard, or otherwise experienced it firsthand. Actual notice is crucial in real estate transactions because it implies that a party is fully aware of certain facts about a property, which can include existing liens, claims, or other encumbrances that could affect ownership rights.

For instance, if someone physically visits a property and notices that there are tenants living there, they have actual notice of the tenancy, regardless of any formal documentation. This contrasts with other forms of notice, such as constructive notice, which involves legal presumption that information is available to the public, even if it hasn’t been directly observed or communicated to a person. Recognizing actual notice helps ensure that all parties involved are fully informed of all pertinent circumstances regarding the property in question.