GUANG ZHOU REAL ESTATE DEVELOPMENT (HONG KONG) CO. LTD. AND ANOTHER v. SUMMIT ELEGANCE LTD.

GUANG ZHOU REAL ESTATE DEVELOPMENT (HONG KONG) CO. LTD. AND ANOTHER v. SUMMIT ELEGANCE LTD.

Plaintiffs failed to give a good title because they could not deliver originals of title documents (the Crown lease and a Deed of Release) that were in existence at completion; certified copies were insufficient where originals existed and were obtainable; other requisitions were satisfactorily answered (including abandonment of easements and government non-objection issues); consequently purchaser was entitled to rescind, recover deposited sums and abortive costs and to a lien over the properties.

Citation
GUANG ZHOU REAL ESTATE DEVELOPMENT (HONG KONG) CO. LTD. AND ANOTHER v. SUMMIT ELEGANCE LTD.
Parties
1st Plaintiff: Guang Zhou Real Estate Development (Hong Kong) Company Limited; 2nd Plaintiff: Kingsford International Investment Limited; Defendant: Summit Elegance Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 August 2000
Case Number
HCA1531/1998
Procedural Posture
Civil Action for Breach of Sale and Purchase Agreement (property/conveyancing) / Judgment (court of First Instance)
Outcome
Plaintiffs' claim dismissed; judgment for defendant on counterclaim; defendant entitled to rescind the agreement and recover deposits and costs; lien declared over Properties
Legal Topics
Title Defects, Requisitions, Rescission of Contract, Deposit Repayment, Lien, Easement Abandonment, Crown Lease Documentation, Production of Originals Vs Certified Copies
Source Language
EN
Property Law Conveyancing Contract Law Civil Procedure Title Defects Requisitions Rescission of Contract Deposit Repayment +4 more

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Parties

Guang Zhou Real Estate Development (Hong Kong) Company Limited

1st Plaintiff

Kingsford International Investment Limited

2nd Plaintiff

Summit Elegance Limited

Defendant

Procedural Posture

Civil Action for Breach of Sale and Purchase Agreement (property/conveyancing) / Judgment (court of First Instance)

Legal Issues

  1. 1 Whether plaintiffs satisfactorily answered purchaser's requisitions
  2. 2 Whether plaintiffs showed and gave a good title at completion
  3. 3 Whether defendant was entitled to rescind for failure of vendor to give title

Ratio Decidendi

Plaintiffs failed to give a good title because they could not deliver originals of title documents (the Crown lease and a Deed of Release) that were in existence at completion; certified copies were insufficient where originals existed and were obtainable; other requisitions were satisfactorily answered (including abandonment of easements and government non-objection issues); consequently purchaser was entitled to rescind, recover deposited sums and abortive costs and to a lien over the properties.

Court Disposition

Plaintiffs' claim dismissed; judgment for defendant on counterclaim; defendant entitled to rescind the agreement and recover deposits and costs; lien declared over Properties

Orders

  • Declaration that plaintiffs failed to answer requisitions nos. 10 and 14
  • Declaration that defendant was entitled to rescind the sale and purchase agreement dated 4 September 1997 and has done so by letter dated 31 January 1998