Bona Fide Purchaser in UK Law

Leading Cases
  • Foskett v McKeown
    • House of Lords
    • 24 May 2000

    If, as a result of tracing, it can be said that certain of the policy moneys are what now represent part of the assets subject to the trusts of the purchasers trust deed, then as a matter of English property law the purchasers have an absolute interest in such moneys. There is no room for any consideration whether, in the circumstances of this particular case, it is in a moral sense "equitable" for the purchasers to be so entitled.

    Following is the process of following the same asset as it moves from hand to hand. Tracing is the process of identifying a new asset as the substitute for the old. Where one asset is exchanged for another, a claimant can elect whether to follow the original asset into the hands of the new owner or to trace its value into the new asset in the hands of the same owner.

    It is merely the process by which a claimant demonstrates what has happened to his property, identifies its proceeds and the persons who have handled or received them, and justifies his claim that the proceeds can properly be regarded as representing his property. It identifies the traceable proceeds of the claimant's property. It enables the claimant to substitute the traceable proceeds for the original asset as the subject matter of his claim.

    Both remedies are proprietary and depend on successfully tracing the trust property into its proceeds. A beneficiary's claim against a trustee for breach of trust is a personal claim. It does not entitle him to priority over the trustee's general creditors unless he can trace the trust property into its product and establish a proprietary interest in the proceeds.

  • Independent Trustee Services Ltd v GP Noble Trustees Ltd
    • Court of Appeal (Civil Division)
    • 28 February 2012

    Despite that inability, the availability of the bona fide purchaser defence means that a transaction in favour of a bona fide purchaser for value without notice is as effective as it would be if he could vest the beneficial title in the purchaser.

  • Credit Agricole Corporation and Investment Bank v Papadimitriou
    • Privy Council
    • 24 March 2015

    The rule is that the defendant in this position cannot say that there might well have been an honest explanation, if he has not made the inquiries suggested by the facts at his disposal with a view to ascertaining whether there really is.

  • Abdul Ghani El Ajou v Dollar Land Holdings Ltd Factorum NV
    • Court of Appeal (Civil Division)
    • 02 December 1994

    This is a claim to enforce a constructive trust on the basis of knowing receipt. For this purpose the plaintiff must show, first, a disposal of his assets in breach of fiduciary duty; secondly, the beneficial receipt by the defendant of assets which are traceable as representing the assets of the plaintiff; and thirdly, knowledge on the part of the defendant that the assets he received are traceable to a breach of fiduciary duty.

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  • Land Registration Act 2002
    • UK Non-devolved
    • January 01, 2002
    ......(6) and 238 of that Act (under which a purchaser in good faith for money or money's worth takes ...S-85 . Bona vacantia 85 Bona vacantia . . Rules may make ... . (a) the confidentiality of private information kept on the ......
  • Finance Act 1920
    • UK Non-devolved
    • January 01, 1920
    ......transferred by him to a bona fide purchaser, and. what part, if any, of the ......
  • Finance Act 1940
    • UK Non-devolved
    • January 01, 1940
    ......was bona fide effected or suffered three years before. the ...) any person (other than a bona fide purchaser for. full consideration in money or money's ......
  • Solicitors Act 1974
    • UK Non-devolved
    • January 01, 1974
    ......not less than three years served bona fide as a clerk to a solicitor. in England and ...purchaser, lessor or lessee, mortgagor or mortgagee, or. ......
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Books & Journal Articles
  • The Misguided Quest: The Clear Case against UNIDROIT
    • Nbr. 4-1, March 1996
    • Journal of Financial Crime
    • 54-59
    The purpose of this article is to give a perspective on the latest attempt, via a multinational agreement, to limit and control the international trade in cultural artifacts. The scope of the propo...
    ...... still provide greater deference to purchasers' rights over possessor's rights. Rather, the ...However, it goes fur-ther. It orders that a bona" fide purchaser must give up his stolen property \xE2\x80"......
  • Payment of Pecuniary Legacies
    • Nbr. 18-6, November 1955
    • The Modern Law Review
    ...... impregnable position of a legal bona fide purchaser. As it is, the conception ......
  • Tracing Money through Art Transactions
    • Nbr. 5-1, March 1997
    • Journal of Financial Crime
    • 44-50
    ‘Tracing’ is the means by which a person who has been wrongly deprived of a thing attempts to identify and follow that thing, or its substitute in value, into the hands of other persons to whom the...
    ...... a gallery and purports to sell it to a purchaser for £100,000. The gallery has two choices here, ...Bona fide purchaser for value no defence Finally, ......
    • Nbr. 34-1, January 1971
    • The Modern Law Review
    ...... relationship in equity; the rights of bona fide purchasers and, finally, the rights ......
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Law Firm Commentaries
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  • Chapter SDLTM09560
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ...... interest in a dwelling in the course of a bona fide property development business with the ... work it receives an offer from a purchaser willing to pay a price that will give the company ......
  • Chapter SDLTM09705
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ...... rate would apply if they were a sole purchaser or a joint purchaser. This is the case whether ... an individual and a company is carrying on a bona fide property development business. On 1 ......
  • Chapter SDLTM23040
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ...... is not effected for bona fide (you may also find it useful to look at ... the property should not pass to the purchaser of the shares. The transfer of property to a ......
  • Chapter PIM1226
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    • HM Revenue & Customs
    ...... is sold subject to terms that the purchaser is to grant a lease to the vendor, or to a person .../S285 is aimed at preventing avoidance, and bona fide commercial transactions will not normally be ......
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