Sunday, September 6, 2009

Er, what is a caveat?

Where do you see this?

In articles, research reports, property websites and legal documents related to property.

What does this mean?

A caveat is a legal document lodged by a person who claims an interest in a property.

For instance, an intending purchaser who has paid a certain percentage of the purchase price to a property owner can lodge a caveat to indicate that he has an interest in the property.

Lodging of caveats is voluntary and there can be a time lag between the purchase date and the lodgement of the caveat.

Why is it important?

It prevents another person from staking a claim on the same property.

The Urban Redevelopment Authority uses caveats to compute its property price indices. Its website has information on private home deals transacted with caveats lodged. Buyers can check the caveats to get an idea of where prices are headed or the latest prices at a development.

So you want to use the term. Just say...

'I just saw a caveat lodged for a unit at my condo. It's 20 per cent higher than what I paid last year. I will wait for the market to rise further before I cash out of this investment property.'

Source: Sunday Times, 6 Sep 2009

No comments:

Post a Comment