Bona Fide Purchaser for Value in Florida
A bona fide purchaser for value (BFP) must satisfy four elements: valuable consideration, good faith, no notice of defects, and legal capacity. All elements must exist at the time of purchase to qualify for protection.
Four Elements
- Value: Reasonably adequate consideration (not nominal)
- Good faith: Honest dealing without intent to defraud
- No notice: No actual, constructive, or inquiry notice
- Legal capacity: Competent to enter the transaction
What Constitutes "Value"
- Cash at or near fair market value
- Assumption of existing debt
- Property exchange of comparable value
- NOT: gifts, nominal ($/$1), grossly inadequate
Types of Notice
- Actual: Direct knowledge of competing claims
- Constructive: Information in public records
- Inquiry: Facts requiring investigation (occupancy, improvements)
Related Terms
- Evidence of Title — Title search reveals notice
- Encumbrance — Recorded claims as constructive notice
- Closing — BFP status at closing
Barnes Walker Title Services
Barnes Walker Title ensures Florida buyers qualify as bona fide purchasers through comprehensive title examination and due diligence. Submit a title inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC