Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Vendor's duty to disclose

Legal area

Court

18 Aug 1999

Lucky Health International Enterprise Ltd. v. Chi Kit Co. Ltd. and Another

Citation

Lucky Health International Enterprise Ltd. v. Chi Kit Co. Ltd. and Another
Court

Court of Appeal
Case number

CACV10/1999

By majority the Court held that where a vendor is aware of issued proceedings against the incorporated owners which, by statute (Building Management Ordinance s.17), are capable of being enforced against any owner for the time being, the vendor was under a duty to disclose the existence of those proceedings to prospective purchasers; failure to disclose such a claim (and the subsequent judgment before completion) constituted a defect/encumbrance in the vendor's title entitling the purchaser to rescind the contract and recover the deposit with interest.
3 Nov 1998

MAX SMART LTD. v. FIRST SUPER INVESTMENT LTD.

Citation

MAX SMART LTD. v. FIRST SUPER INVESTMENT LTD.
Court

Court of First Instance
Case number

HCMP933/1998

The Vendor failed to answer requisitions: the architect certificates did not address present material change of user and ignored the cockloft; the cockloft is an unauthorised structure materially affecting the shop's area and fire safety, rendering change of user likely to be refused under s.25(3)(b)/s.16(1)(g) and preventing the Vendor from passing good title to the Property as agreed; therefore the Purchaser was entitled to rescind and recover deposits, associated costs and interest; the Defendant's counterclaim was dismissed.