Bona fide purchaser: Difference between revisions
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#<span style="background:yellow">notice</span>: subsequent BFP without notice wins over previous grantees | #<span style="background:yellow">notice</span>: subsequent BFP without notice wins over previous grantees | ||
#race-<span style="background:yellow">notice</span>: a subsequent BFP without prior <span style="background:yellow">notice</span> wins over prior grantees | #race-<span style="background:yellow">notice</span>: a subsequent BFP without prior <span style="background:yellow">notice</span> wins over prior grantees | ||
When a BFP records his deed, he is giving <u>constructive</u> <span style="background:yellow">notice</span> to the world of his purchase. | |||
==Notice== | ==Notice== | ||
Latest revision as of 14:13, April 22, 2023
A bona fide purchaser (BFP), in American real estate law, is a purchaser who satisfies 3 elements:
- purchaser (outright buyer who take fee simple title) who
- gives value
- without notice of prior transaction (actual notice, inquiry notice, & constructive notice are okay).
Recording acts[edit | edit source]
Recording acts are subject to
- race: whoever first records a real estate title wins
- notice: subsequent BFP without notice wins over previous grantees
- race-notice: a subsequent BFP without prior notice wins over prior grantees
When a BFP records his deed, he is giving constructive notice to the world of his purchase.
Notice[edit | edit source]
A chain of title search can provide constructive notice to a bona fide purchaser (BFP).
Shelter rule[edit | edit source]
The "shelter rule" means that anyone who takes property from a BFP steps into the BFP’s shoes--regardless of whether the new property owner is a BFP in their own right.
