Some Common Misconceptions by Senior Citizens About the Law

September 29th, 2025 by admin

1. CO-SIGNORS ON A DEBT.

   What you may not realize is that as a co-signer, you are primarily responsible for the debt, too. You are equal in the eyes of the law, and more specifically, the creditor which made the loan in the first place, more than likely, because of your good credit.

2. CONTRACTS TO BUY AND SELL REAL ESTATE.

   A common misconception is that an oral agreement to buy and sell real estate can be enforceable if there are witnesses to the agreement. This is not the law. A real estate contract to buy and sell real estate must be in writing.

3. ALL SALES OF MOTOR VEHICLES ARE SUBJECT TO THE LEMON LAW.

   This is not the law. The lemon law only applies to sales of new motor vehicles.

4. SALES OF MANY LARGE PRODUCTS HAVE A THREE-DAY RIGHT OF RESCISSION.

   Certain person property contracts, or contracts regarding home improvements mortgage real estate loans, may have a limited right of rescission, but these are clearly the exception to the rule. If you have doubts, do not make the deal.

5. HOMEOWNER’S INSURANCE.

   This insurance covers most types of damage to the home and its contents. But there are numerous exclusions for common mishaps. Be sure you know what they are. Some may surprise you.

6. MOTOR VEHICLE LIABILITY INSURANCE.

   Most of us who own a motor vehicle have liability insurance, as the law requires. A common misconception is that if we have a solid amount of liability insurance, we have covered our largest risk. However, the largest risk may be caused by the person who runs into you who has no insurance, or inadequate insurance.

   A disproportionate number of serious motor vehicle accidents are caused by a small number of drivers. They are often driving without insurance (yes, it really does happen), or without adequate insurance. While we should be concerned about coverage for our own negligent acts, it is the insurance coverage of the other driver with which you should be equally concerned.

   If a driver with no insurance or inadequate insurance injures you or a member of your household, it could have a serious monetary impact on your family. The at fault party is often judgment proof to the surprise of many.

   To insure against these risks, purchase all the uninsurance and underinsurance coverage you can afford.

7. WHAT TO DO WHEN YOU ARE IN A MINOR FENDER BENDER ACCIDENT.

   Many of us believe that if we are in a minor motor vehicle accident, no investigating officer needs to be called. When accidents occur on busy highways, we may be tempted to take the line of least resistance and simply exchange insurance information.

   However, state law requires that we call the appropriate authorities most of the time. If there is property damage of $1,000 or more, or there is any personal injury, you must report the accident to the authorities. It does not take much property damage to total $1,000 in property damage.

   It makes good sense to report the accident at the scene, anyway. Liability issues and witnesses should be established to prevent reconstructed memories, which even honest people may have when they return home and begin thinking about the increase in their insurance premiums. The other party could contend you were at fault, too, even in a limited way. In N C, contributory negligence is almost always a complete bar to the recovery of the party who is only slightly (even 1%) at fault. This is a very low burden to meet to bar any recovery.

Tags: benefits, law, seniors

Posted in: WS Journal Articles