A more thorough explanation:

Definition: 1) Information that is believed to be true by the public, regardless of whether it is actually true or not. 2) Referring to a place or building that is known by a particular name or reputation.

Examples:

• He is a reputed criminal, but he has never been convicted of a crime.
• The restaurant is reputed to have the best pizza in town, but I haven't tried it yet.
• The castle is a reputed haunted house, with many ghost stories associated with it.

The first example illustrates the first definition of "reputed" - the man is believed to be a criminal by the public, but there is no evidence to support this claim. The second example illustrates the second definition - the restaurant is known by the public to have great pizza. The third example also illustrates the second definition - the castle is known by the public to be haunted, even though there may not be any actual ghosts there.