Bona Fide Purchaser Case Study
Learning Unit 5: Discussion
When Tim turned 21, as a birthday present, his father gave him the family's vacation cabin, which included several acres of surrounding land. There are no outstanding debts on the property, and the title is clean.
Question: Is Tim considered a bona fide purchaser under the common law bona fide purchaser for value rule? Why or why not?
According to facts a person who takes title to property by inheritance or as a recipient of a gift has given valuable consideration and therefore is not protected as a bona fide purchaser. So Tim is not considered a bona fide purchaser under the common law bona fide purchaser for value rule because he was given the family's vacation cabin as a gift by his father he did not purchase
When Tim turned 21, as a birthday present, his father gave him the family's vacation cabin, which included several acres of surrounding land. There are no outstanding debts on the property, and the title is clean.
Question: Is Tim considered a bona fide purchaser under the common law bona fide purchaser for value rule? Why or why not?
According to facts a person who takes title to property by inheritance or as a recipient of a gift has given valuable consideration and therefore is not protected as a bona fide purchaser. So Tim is not considered a bona fide purchaser under the common law bona fide purchaser for value rule because he was given the family's vacation cabin as a gift by his father he did not purchase