Bona Fide Purchaser for Value Law and Legal Definition

Bona fide purchaser for value refers to a person who purchases legal title to a real property without actual or constructive notice of any infirmities, claims or equities against the title. Generally, such a purchaser is not affected by the transferor’s fraud against a third party. A bona fide purchaser for value also possesses a superior right to the transferred property against the creditor of the transferor to the extent of the consideration s/he (purchaser) has paid. A bona fide purchaser for value is also known as innocent purchaser for value.

It was observed in Chagnon Lumber Co. v. Stone Mill Constr. Corp., 124 N.H. 820 (N.H. 1984) that court order or other instrument which affects title to any interest in real estate will not be effective against bona fide purchasers for value until recorded at length in the appropriate registry of deeds.