Civil Transactions Law

1. A claim of ownership over the sold item prior to its delivery may be filed against the seller or the buyer, or both. 2. If a claim of ownership over the sold item is filed against the buyer, he shall promptly notify the seller, and the seller shall join in the lawsuit. 3. If the seller is notified in a timely manner and joins the lawsuit or fails to do so and, in either case, a judgment is rendered establishing that the sold item is owned by a third party, the seller shall be bound by the warranty of title, unless he establishes that the judgment is a result of an act of deception or gross negligence on the part of the buyer. 4. If the buyer fails to notify the seller of the claim in a timely manner and a judgment is issued against the buyer, the buyer’s right of recourse under the warranty of title shall be forfeited if the seller establishes that the claim of ownership would have been dismissed had he joined the lawsuit.