Mccannon v. Marston

679 F.2d 13 (1982)


On March 19, 1973, P entered into an agreement with The Drake Hotel (the debtor) for the sale of a condominium apartment and of a certain percentage of the common areas in that hotel. P paid a deposit of $500 toward the purchase price of $17,988. She began residence in the apartment in April of 1975 and resides there presently. The bankruptcy court found that settlement on the property has never taken place. P never recorded her agreement for sale. Debtor filed Chapter 11. P filed a complaint seeking relief from the automatic stay and requesting specific performance of the agreement to purchase the apartment. The court held that Marston (D), trustee, as a bona fide purchaser without regard to any knowledge on his part, may avoid P's interest in the property pursuant to Pennsylvania law and Section 544(a)(3) of the Code. The district court affirmed. P appealed.