caveat

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Caveat emptor (; from caveat, "may he beware", a subjunctive form of cavēre, "to beware" + ēmptor, "buyer") is Latin for "Let the buyer beware". It has become a proverb in English. Generally, caveat emptor is the contract law principle that controls the sale of real property after the date of closing, but may also apply to sales of other goods. The phrase caveat emptor and its use as a disclaimer of warranties arise from the fact that buyers typically have less information than the seller about the good or service they are purchasing. This quality of the situation is known as 'information asymmetry'. Defects in the good or service may be hidden from the buyer, and only known to the seller.
It is a short form of Caveat emptor, quia ignorare non debuit quod jus alienum emit ("Let a purchaser beware, for he ought not to be ignorant of the nature of the property which he is buying from another party.") I.e. the buyer should assure himself that the product is good and that the seller had the right to sell it, as opposed to receiving stolen property.
A common way that information asymmetry between seller and buyer has been addressed is through a legally binding warranty, such as a guarantee of satisfaction.

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  1. R

    NSW caveat emptor defence

    I purchased a vehicle privately which broke down the first time we drove it. The fault was a starting motor issue which only occurred after the vehicle had been driven long enough for all engine and ancillary components to be warmed up. It did not show up during the test drive and would not have...
  2. S

    NSW Caveat for ex's business debts

    Hi all - the following requires a mixture of family law, property law and bankruptcy law knowledge. Background...After many years of hell, I finally left my abusive partner only to discover he had racked up significant debts from gambling and drug use. The debts he amassed were mostly...
  3. T

    VIC Caveat

    I’m wanting to remove a caveat from a property I had placed and I’m having no luck as I’m wanting to do this myself as I can’t afford to pay someone to do this for me any advice how I can go about this or were I can go to obtain information. Or someone that does this for free to help people?
  4. B

    Responsibility for identifying caveat

    I am interested to understand who is responsible in the following situation for identifying a caveat exists on a property being used as security in the name of an individual prior to settlement another property. A friend, lets say Barry, is estranged from wife. After a number of years of...
  5. Skateboard

    Caveat on title.

    I paid of a mortgage on a property that I had purchased about 5 years ago and advertised it for sale. I got a copy of the title and saw that my brother had put a caveat on it preventing a sale. This caveat had been on the title for 5 months and I was completely unaware of the caveat. My...
  6. N

    VIC Caveat processe

    I am going through a property settlement atm and I am half owner of a property with my ex partner. We are unable to settle yet because his father has placed a Caveat on our property stating he has an equitable interest because he had gone guarantor and payed it out when we were foreclosed on...
  7. Skateboard

    VIC Caveat placed on title by relative.

    Four years ago I purchased property from a settlement from a property that was sold where my brother and I were joint tennants. I have owned the property for four years and my brother put a caveat on it this year. The caveat states their is an implied trust. What does this mean and how can...
  8. E

    NSW Implications of a Caveat over Property and on the Body Corporation

    Hoping for some opinion on property dispute between two siblings. Sibling 1 loaned money to Sibling 2 and as part of the agreement Sibling 2 could repay the money + interest and there was an option for Sibling 1 could come in on the property at a latter date if they wished to - for a further...
  9. L

    QLD Caveat

    I have caveats on my property from judgements as directors guarantee, my bankruptcy has been discharged. What happens with the caveats as all the caveators were dealt with in the bankruptcy. I am a joint owner with my wife with a mortgage and little or no equity.
  10. S

    QLD Caveat process for Qld property

    Can anyone shed light on how long it takes to register a caveat on a property - is it instant? And once the caveat is registered what is the process?