Define: Bona Fide Purchaser Without Notice

A bona fide purchaser without notice is an individual who purchases property for value in good faith without knowledge of any defects in the title or any other adverse claims or interests. This legal concept provides protection to innocent buyers who acquire property without notice of any existing legal issues or claims against it. Bona fide purchasers without notice are typically entitled to certain legal protections, including the right to retain ownership of the property free from prior claims or encumbrances. However, the exact scope of these protections may vary depending on the jurisdiction and the specific circumstances of the transaction. Generally, courts aim to balance the rights of innocent purchasers with the need to protect the interests of previous owners or claimants.

In full: a ‘bona fide purchaser of a legal interest for value without notice, actual, constructive or imputed’, also known as ‘equity’s darling’. A person who pays money or other valuable consideration for property that has any attached equitable interests (see: Equitable interest land and property), takes the property free of those interests if he can show that he had no notice (see: Doctrine of notice) of them. In such a case, the equitable interests are extinguished, and the owners of those interests will be left to pursue an action against whoever granted them (often their trustees). However, some equitable interests in land may be entered on the Land Charges Register. If they are, then they will bind a purchaser with or without notice

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.