Glossary
Glossary of terms and acronyms related to Australian banking, finance and investments.
Caveat
Caveat is a Latin word which literally means "beware." In finance, it is used to warn potential property buyers that a third party-the one that filed the caveat-has some right or claim over the property. It is usually in a contract clause stating the particular requirement of the caveat. Caveat emptor is a related principle meaning "Let the buyer beware," which leaves the buyer responsible for examining the property and reading the fine print before buying. In a caveat sale, the seller is not obligated to disclose any defects to the buyer.
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