Bona fide purchaser
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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.