If a bona fide purchaser (BFP) was unaware of the escrow, what might the court decide regarding relation back?

In situations involving bona fide purchasers (BFP), the concept of "relation back" is crucial in determining the rights of parties involved in a real estate transaction. Relation back typically allows a grantee's interests to be recognized as effective from the time a certain act was completed, even if the formalities of a recorded deed or payment have not yet been satisfied.

When a BFP is unaware of an existing escrow, the court may decide to allow relation back to protect the grantee's interest. This is grounded in the legal principle that emphasizes the importance of encouraging the certainty of property transactions. Courts often favor the position of protecting those who act without notice of prior claims or interests, particularly when the BFP has not done anything to warrant suspicion about the transaction.

Allowing relation back in this scenario acknowledges the grantee's legitimate interests that were established prior to the BFP's involvement. This approach promotes fairness, as the grantee who properly executed their agreement and established an entitlement should not suffer loss due to circumstances outside their control. By granting relation back, the court effectively secures the transaction integrity and encourages individuals to rely on the apparent state of property titles they encounter.