Can a deed be set aside by the grantor if it has been conveyed to a bona fide purchaser (BFP)?

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Prepare for the Real Estate Transactions Exam with study materials and multiple choice questions with comprehensive explanations. Enhance your real estate knowledge and boost your confidence for exam day!

The correct answer, which states that a deed cannot be set aside by the grantor if it has been conveyed to a bona fide purchaser, aligns with established principles of property law. A bona fide purchaser is someone who buys property in good faith, without notice of any other claims or defects in title, and pays an adequate price. The protection afforded to BFPs ensures that once they acquire the property, the grantor typically cannot reclaim or void the deed, provided the transaction itself is not considered void due to factors such as fraud, incapacity, or violation of statutory requirements.

Additionally, if the deed itself is deemed void—meaning it has no legal effect from the outset—then it may be set aside. However, this pertains to the inherent validity of the deed rather than the status of the purchaser. Thus, if a deed is valid and has been executed properly, the grantor loses the right to reclaim the property once it is transferred to a bona fide purchaser, which solidifies the security of real estate transactions.

The other options fail to recognize the primacy of the BFP's rights in real estate law. Understanding these principles is crucial for navigating real estate transactions effectively.

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