What is a bona fide purchaser?

A bona fide purchaser for value without notice, or what is commonly known as bona fide pruchaser (BFP) in short, is a purchaser in good faith. Meaning, BFP is an innocent party who acquires a property without the knowledge that a third party is claiming a title to the property in question.

Bona fide Purchaser

Bona fide Purchaser

Normally, a bona fide purchaser will not be made liable for third party claims against the property if the claims were made and registered before the purchase. Moreover, a BFD will not be bound by any equitable interest (of which he or she was not given a notice) as long as he or she has made the necessary inspection of the property’s title prior to the acquisition. For example, home owner A fraudulently offered his property to B without telling the latter that it has already been conveyed to C. Then B purchased the property with due diligence, conducting the necessary inspections that a buyer ought to do before paying for it. Several days or months after the purchase, C learned about the purchase and filed a claim against the acquisition. In this case, B is the bona fide purchaser who acquired the property in good faith. He will not be made liable to the claim because he had complied with the law and purchased the property with due diligence and in good faith.