NANYANG FINANCE CO LTD v. CHAN KWOK WING

NANYANG FINANCE CO LTD v. CHAN KWOK WING

The vendor failed to discharge the contractual obligation to show and prove good title because the registered Form 8 giving notice of application for ancillary relief and seeking settlement/transfer orders created a real and arguable risk to title at the time completion was due; that risk could not be disregarded as illusory and therefore the purchaser was not obliged to complete.

Citation
NANYANG FINANCE CO LTD v. CHAN KWOK WING
Parties
Plaintiff (vendor): Nanyang Finance Company Limited; Defendant (purchaser): Chan Kwok Wing
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 May 2003
Case Number
HCMP2227/2002
Procedural Posture
Vendor and Purchaser Summons (s.12 Conveyancing and Property Ordinance, Cap.219) / Judgment (reasons Handed Down)
Outcome
Vendor's claim dismissed.
Legal Topics
Proof of Title, Good Title, Ancillary Relief, Mortgagee Power of Sale, Specific Performance, Registration of Incumbrance, Right of Redemption, Requisition on Title
Source Language
EN
Conveyancing Property Law Family Law Contract Law Proof of Title Good Title Ancillary Relief Mortgagee Power of Sale +4 more

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Parties

Nanyang Finance Company Limited

Plaintiff (vendor)

Chan Kwok Wing

Defendant (purchaser)

Procedural Posture

Vendor and Purchaser Summons (s.12 Conveyancing and Property Ordinance, Cap.219) / Judgment (reasons Handed Down)

Legal Issues

  1. 1 Whether the vendor proved good title to the property as required by the sale agreement
  2. 2 Whether the registered Form 8 (Notice of Application for Ancillary Relief) constituted an arguable proprietary claim affecting title
  3. 3 Whether the wife's claim under Form 8 could found a proprietary interest or was limited to ancillary relief

Ratio Decidendi

The vendor failed to discharge the contractual obligation to show and prove good title because the registered Form 8 giving notice of application for ancillary relief and seeking settlement/transfer orders created a real and arguable risk to title at the time completion was due; that risk could not be disregarded as illusory and therefore the purchaser was not obliged to complete.

Court Disposition

Vendor's claim dismissed.

Orders

  • Vendor's claim dismissed.
  • Vendor to return deposit of $108,000 to the purchaser with interest at judgment rate from 25 February 2002 to date of judgment.