Pursuant to Real Property Law § 266, a bona fide purchaser for value is protected in its title unless it had previous notice of an alleged fraud. A bona fide purchaser's title is protected absent notice of the immediate grantor's fraudulent intent, or of fraud rendering void the title of the grantor. In order to establish that it is a bona fide purchaser for value, a party has the burden of proving that it purchased the property for valuable consideration and that it did not purchase with knowledge of facts that would lead a reasonably prudent purchaser to make inquiry. The intended purchaser must be presumed to have investigated the title, and to have examined every deed or instrument properly recorded, and to have known every fact disclosed or to which an inquiry suggested by the record would have led. Accordingly, a purchaser who fails to use due diligence in examining the title is chargeable, as a matter of law, with notice of the facts which a proper inquiry would have disclosed.
Alli v Navins Holdings, Inc., NY Slip Op 05487 (2d Dep't October 8, 2025)
