What does bona fide purchaser mean?

bona fide purchaser meaning in Legal Dictionary

n. frequently known as BFP in legal and financial circles; someone who features purchased a secured asset (including a promissory note, bond or other negotiable tool) for stated price, innocent of any fact which will cast question regarding the right of the vendor having offered it in good faith. This is certainly essential if true owner appears to claim subject, since the BFP will be able to keep carefully the asset, plus the genuine owner will need to turn to the fraudulent seller for recompense.

bona fide purchaser meaning in Law Dictionary

buyer for a very important consideration paid or parted within the belief that the seller had a right to market, and without the suspicious situations to put him on query. Merritt v. Railroad Co., 12 Barb. (N. Y.) 005. A person who acts without covin, fraudulence, or collusion; one that, in the commission of or connivance at no fraudulence, pays top dollar the home, plus good-faith, actually, as well as in fair working buys and switches into possession. Sanders v. McAffee, 42 Ga. 250. A bona fide purchaser is just one who purchases residential property of some other without warning that some 3rd individual has actually the right to, or fascination with, such residential property, and pays a complete and fair price for the same, during these types of acquisition, or before he has got notice associated with the claim or interest of these other in property. Spicer v. Waters, 05 Barb. (N. Y.) 231.