Forfeiture and Shortfall Claims
Forfeiture and Shortfall Claims
4 November 2024 (Monday), 12:00 – 1:00 PM
Room 723, 7/F Cheng Yu Tung Tower, HKU
With the sharp decline in the property market in recent years, many buyers of first-hand residential properties, after the signing of the Formal Sale and Purchase Agreement, decided to abort the transaction. Under the terms of the standard contract under The Residential Properties (First-hand Sales) Ordinance (Cap 621), apart from forfeiting any deposits, the Developer is entitled to resell the unit for less than the initial purchase price, and the original buyer has to pay for the price difference. The standard term would refer to this resell period to be within six months from the date of termination of the Formal SPA. Recently, developers have commenced legal action against these buyers, some of which involve the price difference calculated on the basis of a resale that took place 22 months later. This seminar will explore issues arising from this recent wave of lawsuits commenced by developers. Under the standard terms for the sale of first-hand units, how should the date of termination be determined? Upon default of a purchaser, does the Developer have to issue a notice of termination? Under the terms of the standard contract (or under common law) can the developer delay resale until an opportune time, or must it elect to terminate the Formal SPA within reasonable time? Does the Developer have to mitigate its losses?
About the Speaker
Mr Adrian But is a barrister-at-law at Sir Oswald Cheung’s Chambers, and an Adjunct Assistant Professor at The University of Hong Kong. Adrian’s practice covers a broad spectrum of civil and commercial matters with a particular emphasis on chancery litigation and arbitration. He regularly gives lectures at HKU, for the Land Law III (Conveyancing) and Property Litigation courses.
Chair: Dr Alwin Chan, Principal Lecturer, Faculty of Law, HKU
Registration is required for this in-person event. Please register ONLINE to reserve your place.
Enquiries: Flora Leung at aiiflhku@hku.hk