DEFINITION of 'Innocent Purchaser For Value'
Someone who unknowingly purchases assets that have been involved in fraud. An innocent purchaser for value can exist in any number of situations, from the buying of real estate to the buyings of art. Because the purchaser lacked knowledge of the crime, he may have the legal right to keep the property. The recovery of such property by the original owner is subject to a statute of limitations.
BREAKING DOWN 'Innocent Purchaser For Value'
Innocent purchaser for value situations can be tricky, as there may be more than one party with an honest claim to the property (the original owner who was defrauded and the innocent purchaser for value), but the courts must ultimately assign the property to a single entity. How this situation is handled varies by case and jurisdiction.