Criminal Code of Canada - section 206(6) - Bona Fide Exception

section 206(6)

INTRODUCTION AND BRIEF DESCRIPTION

This section states that a bona fide purchaser for valuable consideration without notice retains their right to property despite the provisions of subsection (5).

SECTION WORDING

206(6) Subsection (5) does not affect any right or title to property acquired by any bona fide purchaser for valuable consideration without notice.

EXPLANATION

Section 206(6) of the Criminal Code of Canada refers to the rights of bona fide purchasers in cases where the property in question has been acquired as a result of an offense. This subsection complements subsection (5) of the same code, which states that if a person commits an offense and acquires property in the process, that property is deemed to be forfeited to the Crown. However, subsection (6) clarifies that this forfeiture would not apply to "bona fide purchaser(s)" who acquire the property "for valuable consideration without notice" of the offense committed. This means that if someone who purchased the property in good faith did not know about the illegal or criminal activity that led to its acquisition, their right to the property would be protected under the law. For instance, if a person unknowingly purchases a stolen vehicle, they would not be held liable for the theft and could retain the possession of the car if they can prove that they were unaware of its origins. Similarly, if someone buys a house from someone who obtained it through criminal means, but the new owner had no knowledge of this, they would not be required to forfeit the property to the Crown. In conclusion, section 206(6) is a safeguard put in place to ensure that people who purchase property in good faith are protected under the law and not unfairly penalized for an offense that they had no part in committing.

COMMENTARY

Section 206(6) of the Criminal Code of Canada is a provision that aims to protect the rights of bona fide purchasers who acquire property for valuable consideration without being aware of any criminal or fraudulent activity associated with the property. In essence, this provision creates an exception to the general rule that property obtained through illegal means is not legally recognized as valid property. By protecting the rights of bona fide purchasers, the section serves as a safeguard against the unintended effects of criminal activity on innocent parties. The concept of a bona fide purchaser is rooted in the common law principle of caveat emptor, or buyer beware. According to this principle, a purchaser is responsible for ensuring that the property they acquire is free from any defects or adverse claims. However, the law recognizes that this can be difficult in certain circumstances, such as when dealing with stolen or fraudulently obtained property. In such cases, the law provides protection to bona fide purchasers who acquire the property in good faith. Under section 206(6), a bona fide purchaser is defined as someone who acquires property for valuable consideration without notice of any factor that would indicate that the property is subject to a criminal or fraudulent claim. This protection applies regardless of whether the property was obtained through theft, fraud, or other illegal means. As such, if a bona fide purchaser acquires stolen property, they are entitled to keep it, even if the original owner later discovers the theft and seeks to recover their property. The purpose of this provision is to strike a balance between the interests of innocent third parties and the need to deter criminal or fraudulent activity. On the one hand, it recognizes that bona fide purchasers should not be punished for the actions of others, especially when they have acted in good faith and paid valuable consideration for the property. On the other hand, it does not provide a safe haven for criminals or encourage the trafficking of stolen goods. The courts have interpreted section 206(6) to require a high standard of good faith on the part of the purchaser. In order to be considered bona fide, the purchaser must have no notice whatsoever of any defect in the title or ownership of the property. This means that they cannot turn a blind eye to any suspicious circumstances or rely on incomplete or inaccurate information. If there is any doubt as to the legitimacy of the property, it is the purchaser's responsibility to investigate further. In practice, the application of section 206(6) can be complex and fact-specific. Courts will consider a range of factors in determining whether the purchaser acted in good faith, including their level of knowledge, the circumstances surrounding the purchase, and the steps they took to verify the legitimacy of the property. Where there is evidence of fraud or deceit on the part of the seller, this may be sufficient to overcome the presumption of good faith. Overall, section 206(6) is an important provision of the Criminal Code that recognizes the rights of bona fide purchasers and provides a measure of protection against the unintended consequences of criminal or fraudulent activity. While it is not a license to engage in illegal behavior or trafficking in stolen goods, it serves as a safeguard against innocent parties being unfairly penalized for the actions of others. As such, it plays an important role in maintaining the integrity of the justice system and ensuring that the rights of all parties are respected.

STRATEGY

Section 206(6) of the Criminal Code of Canada offers protections to bona fide purchasers for valuable consideration without notice. This means that individuals who purchase property in good faith and for valuable consideration are not affected by any rights or titles to that property that may have been acquired through criminal activity or fraud. While this section offers some level of protection for innocent purchasers, it also raises a number of strategic considerations when dealing with criminal activity or fraud. One key strategy when dealing with Section 206(6) is to conduct due diligence when purchasing property. This may involve conducting searches of public records, verifying the identity of the seller, and reviewing any relevant contracts or agreements. By taking these steps, individuals can ensure that they are purchasing property from legitimate sources and minimize the risk of acquiring property with tainted titles. Another important strategy when dealing with Section 206(6) is to have knowledgeable legal counsel. Lawyers can provide guidance on the legal implications of purchasing property, including any potential risks or liabilities associated with acquiring property from certain sources. They can also provide advice on how to structure transactions or draft contracts in a way that minimizes risk and protects against potential losses. In addition to these strategies, individuals should also be aware of the potential risks associated with acquiring property under suspicious circumstances. This may include instances where the seller is known to have engaged in criminal activity, where the purchase price is significantly below market value, or where the transaction is not conducted through standard channels. By being vigilant and asking questions when these types of red flags arise, individuals can minimize the risk of acquiring property with tainted titles. Ultimately, the best way to navigate Section 206(6) of the Criminal Code of Canada is to be proactive and well-informed. By taking steps to verify the legitimacy and legality of property transactions, individuals can minimize the risk of acquiring property with tained titles or becoming embroiled in legal disputes related to criminal activity or fraud.