A buyer is considering purchasing a property in Calgary. During their due diligence, their lawyer discovers a caveat registered on the title. What is the primary purpose of this caveat under the Land Titles Act (Alberta)?

Question: A buyer is considering purchasing a property in Calgary. During their due diligence, their lawyer discovers a caveat registered on the title. What is the primary purpose of this caveat under the Land Titles Act (Alberta)?

Answer options: ✅ To provide notice to the public that someone claims an interest in the land.

• To automatically transfer ownership of the property to the caveator.
• To invalidate all previous registrations on the title.
• To guarantee the caveator a right of first refusal on future sales.

Correct answer: To provide notice to the public that someone claims an interest in the land.

Explanation: Under the Land Titles Act (Alberta), a caveat serves as a formal notice registered against the title to inform the public of an unregistrable interest claimed by a party, protecting that interest by preventing further dealings without their consent or an order of the court. It does not transfer ownership or invalidate prior registrations.