Caveat

A caveat is a formal notice that asks a court to intervene and suspend action until the party that filed the caveat or challenge can state its case. In real estate, a caveat often gives the person issuing the challenge control of a property upon its sale. A caveat does not force the sale of a piece of property, but it puts the person that issues it next in line for payment after the bank or mortgage company. Anyone who has a legal interest in a piece of property can lodge a caveat in the property. A caveat can prevent a homeowner from selling a piece of property to someone else if there is another third party that has an interest in the estate. The court will tell the homeowner that the home cannot be sold until the issuer of the caveat is allowed to state their concern.