Innocent Purchaser

Innocent Purchaser

An individual who, in Good Faith and by an honest agreement, buys property in the absence of sufficient knowledge to charge him or her with notice of any defect in the transaction.

An individual is an innocent or goodfaith purchaser when he or she buys something, paying valuable consideration, without actual or constructive notice of any legal infirmity in the sale. The purchaser of a gold bracelet for $500 from a jewelry store cannot be charged with notice that the bracelet was stolen.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
Bryant contended that KPC was not an innocent purchaser acting in good faith, citing the "grossly inadequate" price it paid.
Second, addressing the position of the owner of the Weston Hotel, the defence of 'innocent purchaser' is not applicable where there has been fraud or illegality in the transfer of government property.
The Bank, on the other hand, asserted that it is a mortgagee in good faith and an innocent purchaser for value.
It will mean going forward that somebody can just grab public land and allege that he or she is an innocent purchaser, and thereafter decide to compensate, which is wrong," KCAA lawyer Cyril Wayong'o told a local publication.
"Even once you've proved you are an innocent purchaser, you still stand to lose both the car and the money you paid for it because you are not the legal owner and your insurance policy is unlikely to cover this scenario."
"We believe we were an innocent purchaser," Villa said.
According to point 5.1 of the CCTA code of practice: 'members should afford innocent purchasers of vehicles, that are a subject to a Bill of Sale, the same protection under the Hire-Purchase Act 1964 Part III - "Title to Motor Vehicles on Hire-Purchase or Conditional Sale", but only insofar as title shall transfer to the innocent purchaser in the event that the Member failed to register his interest in that vehicle with a relevant Asset Finance Register Company within 24 hours of execution of the agreement.' So, this means that the logbook loan company should be lenient with you and unless they can prove they registered their interest in the car within 24 hours of the loan being signed they should remove their security over the vehicle and sign it over to you.
According to point 5.1 of the CCTA code of practice: "members should afford innocent purchasers of vehicles, that are a subject to a Bill of Sale, the same protection under the Hire-Purchase Act 1964 Part III - "Title to Motor Vehicles on Hire-Purchase or Conditional Sale", but only insofar as title shall transfer to the innocent purchaser in the event that the Member failed to register his interest in that vehicle with a relevant Asset Finance Register Company within 24 hours of execution of the agreement.' So, this means that the logbook loan company should be lenient with you and unless they can prove they registered their interest in the car within 24 hours of the loan being signed they should remove their security over the vehicle and sign it over to you.
According to Article 7(b)(ii) of the UNESCO Convention, only the "innocent purchaser" is granted compensation upon restitution of stolen cultural property.
While the California court had taken a relatively relaxed view of what is "reasonable" to require of a new purchaser, the Fourth Circuit held that the standard for a BFPP should at least meet the standard required of an innocent purchaser, and that "logic seems to suggest" that the standard of care for a BFPP should actually be higher.
It's the innocent purchaser who has to make the claim on the guarantee and it's at this point they find it's not worth the paper it's written on.
Amendments to the LTA in 2005 made it clear that an innocent purchaser of a fee simple interest will, by registration of the instrument purporting to transfer the fee simple interest, acquire that interest, even if the vendor is a rogue.