Understanding Caveat Emptor in Property Transactions

The buyer’s central responsibility is to see that the property is free from encumbrances and that title stands in the person who presents as owner.

Good-faith protection under the Transfer of Property Act does not remove that task. The caveat is that the buyer has done everything in their power to verify the truth. That standard is what later disputes about an alleged defect in title are measured against.

The seller should give information in good faith, and the buyer should ask for it. The buyer must also conduct due diligence before the contract of sale is concluded. Where relevant information is accessible within reasonable limits, it is for the buyer to access and consider it. If the seller does not hand over something the buyer could have verified, that failure does not automatically make the contract voidable.

This is the caveat emptor principle: the buyer should beware of the transaction. Public availability of title information has reduced the imbalance of knowledge and tightened the buyer’s burden. A buyer should not expect a claim against the seller solely because information that was publicly available was not volunteered.