caveat is something entered onto the title by someone claiming title to the property. meaning, if i feel i am the rightful owner of the whole/part of the property, i will enter a caveat.

from my understanding, if i have entered a caveat on 1/7/08, and you buy the same property on 2/7/08 and pay money to the seller, you may lose your money, as my interest came 1st.

that is why it is advisable to do a search 1st, to make sure no one is claiming before you.