law-bona-fide-purchaser-buyer
When property subject to a constructive trust is transferred, the recipient of the property takes title to the
property subject to the trust if (1) the recipient does not give consideration for the property or (2) the recipient
has notice of the existence of the trust at the time of the transfer. Binford v. Snyder, 144 Tex. 134, 138-39, 189
S.W.2d 471, 473 (1945); see Fitz-Gerald v. Hull, 150 Tex. 39, 51, 237 S.W.2d 256, 262-63 (1951) (A court of
equity can impose a constructive trust on property “in the hands of any subsequent holder, until a purchaser of
it in good faith and without notice acquires a higher right, and takes the property relieved from the trust.”);
Teve Holdings Ltd. v. Jackson, 763 S.W.2d 905, 908 (Tex. App.-Houston [1st Dist.] 1988, no writ).
BONE FIDE PURCHASER CLAIM / DEFENSE - CASELAW FROM HOUSTON
The trial court's conclusion that Jeanne Smith was properly conveyed title to the property also cannot be
sustained under any legal theory asserted or tried. Because it is undisputed that Smith paid no money or
property and gave no note or other consideration for the property before she obtained notice of a prior
unrecorded claim, she cannot be a bona fide purchaser for value as she asserted at trial. See Tex. Prop.
Code Ann. § 13.0001(b); English v. Plumlee, 291 S.W. 922, 923 (Tex. Civ. App.- El Paso 1927, no writ)
(“Payment of the consideration upon execution of the deed or before notice of antecedent unrecorded claims
must be shown in order to entitle him to protection.").
Jones v. Smith (Tex.App.- Houston [14th Dist.] Jul. 14, 2009)(real estate law: action to quiet title, not bona fide
purchaser, quantum meruit cross-claim, findings of fact and conclusions of law)
REVERSED AND REMANDED: Opinion by Justice Guzman
Before Justices Brock Yates, Guzman and Sullivan)
14-08-00639-CV Guy Jones v. Jeanne M. Smith and Peter A. Morgenroth
Appeal from 405TH District Court of Galveston County
Trial Court Judge: WAYNE J. MALLIA
Hahn v. Love (Tex.App.- Houston [1st Dist.] Mar. 26, 2009)(Keyes)
(UFTA fraudulent transfer claim, bona fide purchaser defense, constructive trust)
REVERSE TC JUDGMENT AND REMAND CASE TO TC FOR FURTHER PROCEEDINGS:
Opinion by Justice Keyes
Before Chief Justice Radack, Justices Keyes and Higley
01-07-00096-CV Allon R. Hahn, Individually and d/b/a Hahn's Gulf Service v. Bertrand Love
Appeal from 157th District Court of Harris County
URI Cohen v. Hawkins (Tex.App. - Houston [14th Dist.] Apr. 15, 2008)(Hedges) (real estate transaction, setting
aside deed, clean hands, bona fide purchaser)
AFFIRMED: Opinion by Chief Justice Hedges
Before Chief Justice Hedges, Justices Anderson and Seymore
14-07-00043-CV URI Cohen v. Delores Hawkins
Appeal from 334th District Court of Harris County
Trial Court Judge: Sharon McCally
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