Bonafide is Latin, which means that it can be trusted because it has good intentions and intentions. In legal terms, it is often used to refer to buyers or holders who take things without fraud, or knowledge of liens or superior claims by others.
Bonafide Buyer is a term used primarily in common law jurisdiction in real property law and private property to refer to an innocent party who purchased the property without notification of the other party’s claim to the title of the property. In short, bona fide buyers are buyers who buy in good faith without notice of defects in property rights and for valuable consideration.
Meanwhile, the legal definition of a bona fide holder is a negotiable instrument holder who obtains the right to the instrument in ordinary business activities to obtain value before maturity and without the knowledge of any defect in ownership.