I was recently contacted to represent an individual who was a victim of fraud when he learned that somebody he trusted sold his real estate without his knowledge or consent. He transferred his property to this individual he trusted in trust for a limited purpose. This person then sold his property to a sophisticated real estate investor for about 25% of its fair market value. I filed an action to cancel the grant deed to this real estate investor. The issue was whether this investor was known as a bona fide purchaser for value (BFP). A bona fide purchaser for value is somebody who acquires his interest in real property without notice of another’s asserted rights in the property takes the property free of such unknown rights. In this case I argued that a sophisticated real estate investor who buys property for a fraction of its value cannot be a bona fide purchaser for value.
