Recording documents in the public records informs anyone who may have a potential interest in a property of both the owner and lender. In so doing, it provides what is commonly referred to as of an interest in real property.

Constructive notice.

Explanation:

Recording documents in the public records informs anyone who may have a potential interest in a property of both the owner and lender. In so doing, it provides what is commonly referred to as Constructive notice of an interest in real property.

Constructive notice: It is a real estate notice given the public about interest and rights of real estate. This notice is given through recorded documents. This notice is for the welfare of the people and help them to guide about buying and selling of real estate. Constructive notice consists of properly recording the deed with the new title in the public records held at the county. After the deed is recorded, the new owner is registered in the title. Today, constructive notice is used more frequently than actual notice.

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