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 ?
from a bona fide purchaser (gratuitousness the property acquisition by
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.
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.
Trading figures will be made available to bona fide purchasers upon or after viewing.
6321 in that it is valid against bona fide purchasers and attaches to property by operation of law.
For a long time, some owners have felt stuck in their units because bona fide purchasers were being given the run-around by lenders.
You need 15 percent bona fide purchasers to declare," Rozenholc noted.