bona fide purchaser

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bona fide purchaser

n. commonly called BFP in legal and banking circles; one who has purchased an asset (including a promissory note, bond or other negotiable instrument) for stated value, innocent of any fact which would cast doubt on the right of the seller to have sold it in good faith. This is vital if the true owner shows up to claim title, since the BFP will be able to keep the asset, and the real owner will have to look to the fraudulent seller for recompense. (See: BFP, holder in due course)

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Proviso (i) to the engagement of section 27(a) or (b), which stated an action could not be brought to recover property in the case of fraud where the property had been purchased by a bona fide purchaser for value without notice, did not apply because Mr Levy had not proved that Mr Rand fitted this description.
The proviso in section 27(b)(i) did not apply because Mr Levy could not show that he was a bona fide purchaser for value without notice. He had not bought the Painting from Mr Rand; he was given it.
The limitations of gifts: Levy v. Watt
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.
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