Property Ownership: Who Has Actual Notice?

Who has actual notice that Chris owns the property in the given scenario?

a) Chris

b) Lori

c) the public

d) the settlement officer

Answer:

Everyone involved in the private transaction of Chris buying Lori's house has actual notice of the ownership change except for the public.

In the given situation, after the settlement transaction where Chris bought Lori's house and Lori has signed the deed to Chris, everyone involved in the transaction has direct knowledge, also known as actual notice, of Chris owning the property except for the public. This is because the transaction and the handing over of the deed occurred privately. The public would only become aware of this ownership change if the deed was publicly recorded in the local land records, a step that occurs after the settlement.

It is important to note that in real estate transactions, the public gains knowledge of property ownership changes through public records and not through private transactions or settlements.