31 Dec 1996
CHAN FUNG LAN v. LAI WAI CHUEN
- Citation
- CHAN FUNG LAN v. LAI WAI CHUEN
- Court
- Court of First Instance
- Case number
- HCMP4210/1996
The court adopted the construction that 'notice' in the proviso to s.18 includes notice of facts giving rise to a contingent estate duty charge (not limited to notice of a subsisting registrable charge); consequently a sale by a donee within three years of the gift (with donors alive) produces a latent defect in title rendering the vendor unable to deliver title free from incumbrances; security or indemnity is not an adequate or accepted practical remedy in Hong Kong, and the purchaser validly rescinded and is entitled to return of the deposit and costs for title investigation.