A Caveat is a document lodged at the Land Titles Office to protect a Purchasers interest in the property pursuant to the Contract of Sale.
In some cases there can be a delay of up to 90 days or more from the time the Purchaser signs the Contract and settlement. In this time, the Certificate of Title to the property is still in the name of the Vendor and third parties associated with the Vendor can place encumbrances over that title. For example, lending institutions who have unsecured loans.
The purpose of the Caveat will in effect prevent any other encumbrances being placed on the Certificate of Title.
The cost of Lodging a Caveat is $249.00 and should be automatically be withdrawn upon registration of the Transfer of Land.