Florida Broker Practice Exam

What type of notice is acquired through direct knowledge during a transaction?

1. Actual notice

2. Constructive notice

3. Implied notice

4. Presumed notice

The correct answer is: Actual notice

Actual notice refers to information or awareness of a fact that is directly known to the party in question, often gained through personal observation or communication. In a real estate context, this means that if a buyer is directly informed of any conditions or issues regarding a property—such as knowing about an encroachment or being informed about a defect in the home—they possess actual notice of those facts. This type of notice is critical in transactions, as it establishes a clear understanding and acknowledgment of the specifics by the parties involved, leading to informed decision-making. In contrast, constructive notice is a legal concept where a party is assumed to have knowledge of a property right or fact because it was publicly recorded or made available, regardless of whether they actually learned of it. Implied notice arises from circumstances suggesting that one should be aware of a fact, while presumed notice typically refers to situations where the law presumes knowledge based on the situation. Each of these forms of notice operates under different principles, but actual notice stands out for being obtained directly and purposefully.