What is meant by "inquiry notice"?

Inquiry notice refers to a legal obligation to investigate potential claims or interests that may affect a property that a reasonable person would uncover upon inspection. This concept arises in property law to protect parties from claims based on knowledge that they should have acquired through reasonable diligence.

When someone is said to have inquiry notice, it means that they should have explored or investigated certain circumstances—such as the presence of other claimants or defects in a property—because these suspicions or indications arise based on what a prudent person would note during their examination. For example, if a prospective buyer notices unusual markings on a property or hears of certain conditions that are not immediately clear, they acquire the duty to look into these matters further.

The other options do not accurately capture the essence of inquiry notice. Information based on recorded documents refers more to constructive notice rather than the active investigation implied in inquiry notice. Seller disclosures provide information from the seller but do not necessarily imply a legal obligation to investigate deeper issues. Lastly, actual notice experienced during property viewings relates to direct awareness rather than the legal requirement to conduct further inquiry based on observations. Thus, the correct choice is indeed the concept that connects inquiry notice with the responsibility to investigate potential claims observed or suspected during an inspection.