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)

References in periodicals archive ?
44 (2016), found that a lender/purchaser with knowledge of a deed of trust violation would not be a bona fide purchaser. "The Court therefore finds for purposes of demurrer that rescission is an available remedy should Ononuju allege sufficient facts to warrant rescission."
enjoys a fully valid legal right, while the bona fide purchaser'
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.
The new holder of the mortgage registered its interest and then assigned it to another bona fide purchaser who also secured registration.
Title remains in A, but to a bona fide purchaser (17) who does a title search, B appears to be the owner of part of the land granted to A.
On appeal, the county argued that when a developer conveys to a bona fide purchaser a lot that was previously assessed at the developer's acquisition cost, the lot must be revalued at its purchase price regardless of whether it contains a building.
Claim (1) is defeated if the defendant is a bona fide purchaser (of the legal title) for value without notice.
I observe that to impose the requirement of bona fide purchaser for value in section 43 appears to negate the discrimination imposed by the statute--why distinguish between instances of registration according to whether there was fraud if the end result is the same?
In order to qualify for the bona fide prospective purchaser, the disposal of hazardous substances at the site must have occurred prior to the bona fide purchaser's acquisition and the purchaser must, among other things, perform appropriate inquiries and due care in dealing with hazardous substances at the site.
Until the lien has been established by a court, any "bona fide purchaser" buys the property free and clear of any mechanic's lien claim.
Because of this dilemma, a third party is required to convey title to the successful buyer only when the third party is not a bona fide purchaser without notice of the claim.