CHIU HONG DEVELOPMENT LTD v. WONG TSUI HA

CHIU HONG DEVELOPMENT LTD v. WONG TSUI HA

The Vendor failed to discharge the burden of proving good title because the Architect's Certificate supplied was incomplete without the referenced plan and therefore did not reassure that the existing partitioning was not unauthorised building work; accordingly the Purchaser validly terminated and is entitled to recover the claimed sum of $235,310 with interest. The requisition for the pre-intermediate-root User Letter was unnecessary on the facts and the Government Notice requisition was improperly founded on the wrong statute; the Sub-DMC issue was left undecided.

Citation
CHIU HONG DEVELOPMENT LTD v. WONG TSUI HA
Parties
Plaintiff: Purchaser; Defendant: Vendor
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 January 2010
Case Number
HCMP1044/2009
Procedural Posture
Vendor Purchaser Summons Under Conveyancing and Property Ordinance (cap.219) / Judgment (court of First Instance)
Outcome
Judgment for Plaintiff in sum of $235,310 with interest at 1% above prime from date of originating summons; declaratory relief declined; costs nisi for Plaintiff
Legal Topics
Title Requisitions, Proof of Title at Completion, Occupation Permit, Architect's Certificate, Production of Title Documents, Intermediate Root of Title, Sub Deed of Mutual Covenant, Termination and Refund of Deposits, Liquidated Damages
Source Language
EN
Conveyancing Property Law Land Registration Contract Title Requisitions Proof of Title at Completion Occupation Permit Architect's Certificate +5 more

Case Brief

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Parties

Purchaser

Plaintiff

Vendor

Defendant

Procedural Posture

Vendor Purchaser Summons Under Conveyancing and Property Ordinance (cap.219) / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether the Vendor proved and showed good title at completion
  2. 2 Whether an Architect's Certificate lacking the referenced plan suffices to discharge vendor's obligation to prove title
  3. 3 Whether the Vendor must produce pre-intermediate-root documents (User Letter and Government Notice) to show absence of encumbrances

Ratio Decidendi

The Vendor failed to discharge the burden of proving good title because the Architect's Certificate supplied was incomplete without the referenced plan and therefore did not reassure that the existing partitioning was not unauthorised building work; accordingly the Purchaser validly terminated and is entitled to recover the claimed sum of $235,310 with interest. The requisition for the pre-intermediate-root User Letter was unnecessary on the facts and the Government Notice requisition was improperly founded on the wrong statute; the Sub-DMC issue was left undecided.

Court Disposition

Judgment for Plaintiff in sum of $235,310 with interest at 1% above prime from date of originating summons; declaratory relief declined; costs nisi for Plaintiff

Orders

  • Judgment for Plaintiff for $235,310
  • Interest on judgment at 1% above prime from date of originating summons to date