“BFP” has old, rich meaning - Posted by John Merchant
Posted by John Merchant on July 11, 2007 at 15:14:09:
Any lawyer seeing the term BFP is going to be immed. curious as to what a layman is doing using it.
It’s an ancient abbreviation for Bona Fide Purchaser and that is a RE purchaser or lender who buys or lends on RE without knowledge of an unrecorded deed or deed of trust or mtg.
Legally, that BFP is then protected by his ignorance and is in a superior position, on the title, to any buyer or lender who’s got a deed or deed of trust or mtg but who hasn’t recorded same.
I’ve known of two or three such situations where the new buyer or lender is offered such a tremendous deal that he’s immed. suspicious that there is a prior, but unrecorded, deed or D/T, but being savvy to “first in time, first in line” he goes ahead and takes the new deed or D/T and quickly records it so he’s ahead of any other, older, unrecorded conveyances.
The new buyer or lender is under NO obligation to check out any unrecorded doc and once his new deed or D/T is recorded, he’s virtually invulnerable to the older grantee, mortgagee, etc.