Good faith and section 3(1) LRO

Section 3(1) of the Land Registration Ordinance is to be applied without any reference to the concept of good faith.

In Keep Point Development Ltd v Chan Yi Yim v Full Country Development ([2000] 2 HKLRD 145) Full Country bought units in a building to be redeveloped from their owners (the defendants). It granted them options to purchase units in the redeveloped building. These were not registered at the Land Registry. Full Country sold the building to the plaintiffs who registered their title. There was thus a priority contest between the plaintiff’s title and the defendants’ unregistered options. The CFI agreed that section 3(1) of the Land Registration Ordinance could be applied to resolve this question. The question of the purchaser’s good faith is irrelevant here. Even had the plaintiff relied on section 3(2) there was nothing to indicate a lack of good faith.

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2 Responses to “Good faith and section 3(1) LRO”

  1. lawrence Says:

    slightly confused, who are the two parties in this case?

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