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Title 3 . Commerce, Community, and Economic Development
Chapter 20 . Land Sales
Section 240. Inferences

3 AAC 20.240. Inferences

(a) An inference that can be reasonably drawn from advertising or promotional material will be considered to be a positive assertion unless the inference is negated in the advertising or material in clear and unmistakable terms, or unless adequate safeguards have been provided by the developer to reasonably guarantee existence of the thing inferred. Advertising and promotional material will be judged on the basis of the positive representation contained in them and the reasonable inferences to be drawn from them. Unless the contrary affirmatively appears in advertising or promotional material, the inferences set forth will be assumed to have been intended.

(b) When homesites or building lots are advertised without qualification, the inferences are that

(1) the lots are usable for the purpose without any further improvement or development by the prospective purchaser;

(2) there is an adequate potable water supply available;

(3) the lands have been approved for installation of septic tanks or that an adequate sewage disposal system is installed;

(4) the individual homesites are accessible by automobile, without additional expense to the purchaser, over an existing right-of-way;

(5) no other fact or circumstance exists to prohibit use of the lots as homesites or building lots.

(c) When lands are advertised without qualification as usable for a particular purpose other than homesites or building lots, the inference is that the land is immediately accessible and usable for that purpose by prospective purchasers without the necessity for improvements before putting the lands to use for that purpose, except for reasonable preparation; and that no fact or circumstance exists to prohibit use of the lands for that purpose.

(d) When title insurance, an abstract, or attorney's opinion is advertised, the inference is that the seller can and will convey fee simple title free and clear of all liens, encumbrances, and defects except those which are disclosed in writing to the prospective purchaser before purchase.

(e) When a recreational facility, improvement, accommodation or privilege is advertised, the inference is that it is on the land at the present time and available to the purchasers of lots at no additional expense, unless otherwise specified.

(f) When an improvement is advertised, the inference is that it is completed, unless it is advertised as proposed, and sufficient guarantees have been made for its completion.

History: Eff. 4/3/76, Register 58

Authority: AS 34.55.010 (3)

AS 34.55.020

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Last modified 7/05/2006