What Is a Bona Fide Purchaser
A bona fide (good-faith) purchaser is a buyer who:
- did not know and could not have known that the seller had no right to transfer the property,
- exercised reasonable caution when entering into the transaction.
Under Article 302 of the Civil Code of the Russian Federation, a bona fide purchaser is protected from vindication (recovery of the property by the original owner): if the property left the original owner’s possession voluntarily, it cannot be recovered from a good-faith buyer for value.
The Chain-of-Transactions Problem
On the secondary market, an apartment often passes through several sales. A buyer checks their immediate seller — but not the full chain of prior transactions. That is precisely where the risk lies: if the apartment was once transferred without a proper legal basis (fraud, seller’s incapacity, forged documents), the final buyer may face a vindication claim.
In the Dolina-Lure case (named after the parties), the Supreme Court examined a situation where the end buyer had purchased lawfully, but fraud had occurred earlier in the chain. Lower courts stripped the buyer of the apartment despite the evident good faith of the purchase.
The Supreme Court’s Position
The Supreme Court held that the criteria for good faith must be examined with greater care:
- The reasonable-verification standard: a buyer who requested an EGRN extract, reviewed the title history, personally inspected the apartment, and confirmed that the seller was the genuine owner has performed a reasonable level of verification.
- Protection for a purchaser for value: the Supreme Court stressed that recovering property from a good-faith purchaser for value is permissible only in exceptional cases expressly provided by law.
- Compensation from the state: if a good-faith purchaser does lose the property, they are entitled to compensation from the state (Article 68.1 of the Real Estate Registration Law) equal to the cadastral value.
How to Verify a Property on the Secondary Market
- EGRN extract — current, dated the day of the transaction. Check the owner, encumbrances, and any prohibitions on transactions.
- Title history — the EGRN title-transfer extract. Frequent ownership changes over a short period are a warning sign.
- Seller’s legal capacity — letters from psychiatric and narcological clinics if there is any doubt.
- Notarial verification — a notarially certified transaction reduces risk: the notary bears liability for verification.
- Title insurance — an insurance policy protects against financial loss in the event of vindication.
Read Also
- Hidden Risks in Secondary Market Property: When a Previous Owner Can Reclaim an Apartment
- New Real Estate Transaction Safety Mechanisms in 2026
Buying an apartment on the secondary market and want to verify the transaction is clean? Contact us for a consultation — we will review the property’s history and help you structure a safe deal.