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Bona Fide Purchaser
A bona fide purchaser is a party who has bought a property in good faith with valuable consideration, but without knowledge (actual or constructive) of title defects.
This can sometimes happen when property is transacted without following procedures, or when mistakes are made by title companies when researching into title history.
Bona fide purchasers (BFP) are usually protected in some degree by the law under the state recording act.
But it would be foolish for a home buyer to depend on this to protect themselves from third party title claims when such incidents can be prevented in the first place.
Thorough title research has to be conducted by title companies, and for more protection, title insurance can be purchased at an affordable price.
There are various advantages of title insurance and every property buyer should seriously consider them when buying a house.
In practice however, bona fide purchasers are getting fewer as information is freely available these days to guide home buyers through the process of closing. And service providers are getting better at weeding out mistakes with help of technology.