united-states property statutes
Defining good faith
<p>“‘Good faith’ means <strong>honesty in fact in the conduct or transaction concerned</strong>.” OCGA §11-1-201(19). </p>

<p>“‘Good faith’ in the case of a merchant means <strong>honesty in fact</strong> and the observance of reasonable commercial standards of fair dealing in the trade.” OCGA §11-2-103(1)(b).</p>

<p>Above are two statutes defining good faith. Good faith is required to be a good faith purchaser. A purchaser must be a good faith purchaser in order to qualify as a Bona Fide Purchaser (BFP).</p>

<p>Please tell me what the bolded parts mean.</p>

<p>"honesty in fact" means not making false statements of fact, in short not lying about the facts. And as a comment calls to my mind, it also means not engaging in deception by ommission. That is it means not failing to state relevant and material facts about the transaction.</p>

<p>A "good faith purchaser" is one who bought not as part of a scheme or with any deceptive intent. It is one who bought at a fair price or what s/he believed to be a fair price.  It is one who bought because s/he desired to own the property. It is not, for example, one who bought at an unfairly low price, using some improper advantage, or extorting a low price, or concealing inside information. It is not one who bought on behalf of another who could not afford to appear in the transaction. </p>
