What happens to a Vendor's Lien against a Bonafide Purchaser (BFP)?

A Vendor's Lien is a legal right that allows a seller to retain an interest in the property after it has been sold, until the purchase price has been paid in full. However, when it comes to Bonafide Purchasers for Value (BFP), this lien cannot be enforced against them.

A BFP is someone who purchases property in good faith, without notice of any existing claims or liens, and for value. Because the BFP is unaware of the Vendor's Lien at the time of purchase and likely provides valuable consideration (i.e., payment for the property), the law protects them from such encumbrances. Consequently, the Vendor's Lien is considered to fail against a BFP, allowing the buyer to take possession of the property free from that claim. This legal principle helps ensure marketability and stability in real estate transactions by encouraging buyers to trust that they are acquiring property without hidden burdens.