WIELDER PROPERTIES INVESTMENT CO LTD v. RICHWAY INTERNATIONAL INVESTMENT LTD

WIELDER PROPERTIES INVESTMENT CO LTD v. RICHWAY INTERNATIONAL INVESTMENT LTD

The court held the requisition was satisfactorily answered and the vendors can give good title because, on the facts (an occupation permit authorising non‑domestic use, long standing use, government awareness and acquiescence) there was no real risk of government enforcement; Jumbo Gold and subsequent appellate authorities govern the proper test for good title and must be followed over decisions that treated any risk as fatal.

Citation
[2020] HKCFI 506
Parties
Plaintiff (vendor): Wielder Properties Investment Company Limited; Plaintiff (vendor): Chan Carrie; Defendant (purchaser): Richway International Investment Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 March 2020
Case Number
HCMP1028/2019
Procedural Posture
Vendor and Purchaser Summons Under S.12 Conveyancing and Property Ordinance / Originating Summons Determined on Paper; Judgment Delivered
Outcome
Judgment for the Vendors in both matters
Legal Topics
Good Title, Breach of Covenant in Government Lease, Government Enforcement/re Entry, Requisition as to Title, Occupation Permit
Source Language
EN
Property Law Conveyancing Land Law Good Title Breach of Covenant in Government Lease Government Enforcement/re Entry Requisition as to Title Occupation Permit

Case Brief

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Parties

Wielder Properties Investment Company Limited

Plaintiff (vendor)

Chan Carrie

Plaintiff (vendor)

Richway International Investment Limited

Defendant (purchaser)

Procedural Posture

Vendor and Purchaser Summons Under S.12 Conveyancing and Property Ordinance / Originating Summons Determined on Paper; Judgment Delivered

Legal Issues

  1. 1 Whether the purchaser’s requisition as to inconsistency between Crown lease user restriction and occupation permit has been satisfactorily answered
  2. 2 Whether the vendors can give good title despite the breach of the Crown lease user covenant

Ratio Decidendi

The court held the requisition was satisfactorily answered and the vendors can give good title because, on the facts (an occupation permit authorising non‑domestic use, long standing use, government awareness and acquiescence) there was no real risk of government enforcement; Jumbo Gold and subsequent appellate authorities govern the proper test for good title and must be followed over decisions that treated any risk as fatal.

Court Disposition

Judgment for the Vendors in both matters

Orders

  • Order in terms of the Originating Summons in each case
  • No order as to costs