Bona fide purchaser
Somebody who buys property for value, in good faith, without notice of anyone else's claim to it. The law usually protects them, even against the rightful owner.
What it means
The doctrine protects the market: a buyer who pays fairly and has no reason to know of a competing claim generally keeps what they bought, and the person with the claim is left to pursue the seller instead.
It runs through estate work more often than its name implies. A vehicle or a house sold by somebody who turned out not to be entitled to sell it is frequently not recoverable from the buyer.
Notice can be actual or constructive — a recorded lien or a recorded deed puts the world on notice whether or not the buyer read it.
Why it matters
It is the reason an executor who sells too early, or an heir who sells before the estate is settled, can create a problem that cannot be undone.
It also explains why a recorded document matters so much: recording is what stops a later buyer being protected against you.
When you are likely to meet it
- When property was sold by somebody without authority.
- When a title search turns up an old unrecorded interest.
- When an estate is deciding whether it is safe to sell.
How this varies by state
What counts as notice, and how far a buyer is protected, are set by state law.