Property Law · defense
A good faith purchaser (GFP) is someone who buys property without notice of any other claims or interests in that property. GFP status often acts as a defense against actions to reclaim the property on the grounds of prior unrecorded claims.
The purchaser must acquire the property through a legitimate transaction, such as a sale.
What to prove: It should be demonstrated that the acquisition was done in a legally recognized manner without fraudulent intent.
The purchaser must prove that they purchased the property without notice of any prior claims, liens, or encumbrances.
What to prove: The purchaser must provide evidence showing they had no actual, constructive, or inquiry notice of any competing interests.
The purchaser must have paid valuable consideration for the property.
What to prove: Evidence must show that the buyer engaged in a transaction that involved a fair exchange of value, indicating serious intent.
The burden of proof typically lies with the party challenging the GFP status, and the standard of proof is usually 'preponderance of the evidence.'
In exams, focus on the nuances between good faith and constructive notice, as well as the distinctions between different types of purchasers.