Legal Tips
Q: What is title insurance?
A: Title insurance guarantees that the seller owns the property and is able to transfer title to the buyer. It also guarantees that there are no undisclosed liens or claims to the property. If problems with the seller's ownership of the property surface later, the issuer of the title insurance will have to pay the costs of resolving the problem. Title insurance usually is purchased through the escrow company.
Q: What is the story on book and record clubs that send me an announcement that I will be receiving merchandise in the mail from their company?
A: Sellers like these offer you what is called a negative option plan. Subscribers are sent the merchandise, along with a bill, unless the seller is contacted within a set period of time and advised not to send the product. There is nothing wrong with these plans. However, the consumer must be given a clear understanding, or disclosure, of the terms of the plan, including all the costs involved. If you do send back the card to the seller within the specified period of time, advising them not to mail the merchandise, and you receive the product anyway, it will be considered a gift.
Q: Can a manufacturer or retailer sell products without warranties at all?
A: Yes, but the purchaser must clearly be informed that there are none. As a practical matter, for sellers to remain competitive in the marketplace, some form of warranty is generally included on a product or service. A warranty is an important feature to consider when you are making a purchase, and you would be wise to compare warranties among several merchants; it might save you a significant amount of money if you discover a defect or malfunction at a later date.
Q: What can a consumer do to check out a land sale offer?
A: Traveling to the land itself is not enough – it has been known to happen that the developer doesn’t even own the land. Consumers can guard against falling victim to totally fraudulent land deals or against being misled by sellers who are operating just within the law in offering a “deal” that just isn’t worth the purchase price. They can protect themselves by contacting their state’s land sales agency, state and local Consumer Affairs Office, Attorney General’s Office, Better Business Bureau and county licenses offices in the area in which the land is located. In other words, anyone planning to purchase unimproved land should use every resource available to him or her in order to protect themselves.
These questions were taken from “A Layman's Guide to the Law. ” For information or to order this publication please contact Bob's office at 702.870.1100, or use the contact form.
