the property and a bona fide purchaser no deal has been effected, the
from a bona fide purchaser (gratuitousness the property acquisition by
the bona fide purchaser, withdrawal of the property from the possession
2001) (stating that the bona fide purchaser provision comes from
Ohio 2005) (stating that the term bona fide purchaser includes "all
is a bona fide purchaser for value of the right, title, or interest in
To protect C's investment as bona fide purchaser who paid full value for the land because the title on the record was unencumbered, the courts created an exception to the requirement that the buyer from C have no notice of the mortgage in order to be able to invoke the Recording Act.
89) But in Race-Notice jurisdictions a different theory is available to protect C: a possible rule that, when mortgagee A lost the race to bona fide purchaser C at the moment of C's recording, A's claim under his unrecorded instrument is permanently extinguished.
Suppose that B, who had notice of A's mortgage, sold to bona fide purchaser C subject to a ten-year option to repurchase for a stipulated price, (92) an option that B subsequently exercises.
Each of these potential "routine" title defects could, under state law, allow a bona fide purchaser or mortgagee for value without notice, a judgment creditor or lienor, or under certain circumstances, a mechanic's lienor, to avoid or take lien priority over all or a part of the lender's mortgage.
A trustee in bankruptcy has the rights of a so-called "hypothetical lien creditor": a bona fide purchaser of real property or a judicial lien creditor, regardless of whether such purchaser or creditor exists.
As a result, the exclusion may relieve the title company of liability for the risk that a bona fide purchaser for value without notice will record a deed after the lender has funded, but before the mortgage has been recorded, and take title free and clear of the mortgage, (N.