bona fide purchaser


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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.

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.)
References in periodicals archive ?
by its owner from a bona fide purchaser? Can the juddgment of the
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.
The late Peter Birks repeatedly argued that this knowledge requirement is inconsistent with the common law's imposition of strict liability upon a recipient of enrichment at another's expense, subject to the defences of change of position or bona fide purchaser, (85) for which the onus of proof lies with the recipient.
(18) The majority of texts opined that section 43 was only protective of bona fide purchasers for value without notice, that is, buyers in good faith paying a fair purchase price and wholly unaware of any irregularities regarding the vendor's right to sell.
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.Y.
Actions to recover goods which have come into the hands of a bona fide purchaser would have remained impossible according to Dutch law before the Implementation Act.
New Delhi [India], Aug 18 ( ANI ): The Prevention of Money-Laundering Act (PMLA) Appellate Tribunal on Saturday released the attachment on flats owned by bona fide purchasers in the 'Kingfisher Towers', which had been attached by the Enforcement Directorate (ED) in relation to fugitive liquor baron Vijay Mallya/ United Breweries Holding Limited (UBHL) case.
A full inventory of fixtures and fittings will be made available to any bona fide purchasers.
Finally, he said Nebraska law protects bona fide purchasers from restrictive covenants when there is no notice.
Under Tennessee law, certain unregistered instruments "shall be null and void as to existing or subsequent creditors of, or bona fide purchasers from, the makers without notice" (TN Code Ann.
* Supports amending [subsection] 701.02 (Assignment of Mortgages) to conform it to revised UCC Article 9 and provide that: 1.) perfection of UCC security interest in a pledged mortgage is governed solely by the UCC and not by [subsection] 701.02, and 2.) filing of a UCC financing statement is not "notice" under [subsection] 701.02 and does not affect reliance rights of creditors and bona fide purchasers without notice with respect to instruments executed by the "mortgagee of record" as determined under [subsections] 701.02.