bona fide purchaser

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Related to Bona Fide Purchasers: Bona fide purchaser for value without notice

Bona Fide Purchaser

The purchaser of a property who does not know the seller lacks the right to sell it. The bona fide purchaser, because he is unaware of competing claims to the property, is usually considered the proper owner. However, most of the time the owner with the true claim to the property may sue the seller. In any case, the bona fide purchaser is held harmless in the transaction.
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bona fide purchaser (BFP)

One who purchases property in good faith and for a valuable consideration without knowledge,actual or constructive,of the seller's title defects.Under certain circumstances,BFPs may retain the property free and clear of the claims of others.(As a practical matter,it is difficult to be a BFP of real property because of the constructive notice provided by public filings of almost all real estate-related claims.)
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
vindication restrictions, a bona fide purchaser obtains a property
bona fide purchaser also arises in the case of the expiry of the statue
Whether it is because they were not bona fide purchasers or because
Courts have not established exactly what makes a bona fide purchaser in
A conveys to B, a bona fide purchaser aware of the O-to-A deed, who records the A-to-B deed but not the O-to-A deed.
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.
(43) However, if the tracing rules are presumed to be consistent with the priorities rules, then the principal should be able to trace even against a defendant who is a bona fide purchaser of an equitable estate.
The application of these priority and tracing rules to a defendant who is a bona fide purchaser of an equitable interest in the principal's property, or a volunteer recipient of the principal's property, is severe where the defendant has changed their position in reliance on the receipt of the property but still holds the property or its traceable substitute.
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.