What does the term "Public Records" refer to under the ALTA 2006 form policy?

The term "Public Records" under the ALTA 2006 form policy is understood to refer to the concept of imparting constructive notice of matters. Constructive notice means that information is considered to be known by a person not because they have actual knowledge of it, but because it is publicly available and legally accessible.

In the context of title insurance, these public records include documents such as deeds, mortgages, liens, and other legal filings that are maintained by government offices and can be accessed by anyone. This system ensures that any potential issues concerning the title, such as prior claims or encumbrances, are available for examination by interested parties. The idea is that if someone does not check the public records, they take the risk of being unaware of any claims against the property, and this is where constructive notice applies.

By insuring against issues that might not be directly known to the insured but are discoverable through public records, the title insurance policy protects the insured from claims that are not apparent but are nonetheless legally recognized as existing due to their presence in the public domain. This aspect of public records is crucial in title insurance as it establishes the boundary of coverage and the responsibility of property owners to perform due diligence before finalizing a property transaction.