Weekly Review: 26th – 30th September

Building Management Ordinance: Common parts

Non-structural internal partition walls dividing one flat from another are unlikely to be common parts (although it is always a question of construction of the Deed of Mutual Covenant and other relevant documents  (Tam Sze Man v Incorporated Owners of Shan Tsui Court).

Compulsory sale for redevelopment

The Land (Compulsory Sale for Redevelopment) Ordinance allows the owner of not less than 90% of the shares in a building to make an application for the sale for redevelopment of all of the shares in the building. The 90% threshold has been reduced to 80% in certain classes of case. This reduction applies where individual units represent more than 10% of the shares. A ‘paper’ sub-division of a unit that did not reflect a genuine physical division of the unit was ineffective as a way of escaping the reduced threshold (Lead Traders Ltd v Lucky Land Enterprise Ltd).

Leases: covenant for quiet enjoyment

This covenant is broken where the landlord acts in a way that is inconsistent with the possession promised to the tenant. Efforts to unlawfully evict a tenant amount to such a breach (Kenny v Preen).

Leases: effect of ‘uncertain’ contractual restriction on ability to end periodic tenancy

A term in a periodic tenancy providing that the landlord will only have the right to serve notice to quit if, for example, the tenant is in arrears with the rent is uncertain and has no effect in law or equity (Mexfield Housing Co-operative v Berrisford).

Lease: implied terms

There is normally no implied landlord’s covenant that the demised premises are legally or physically fit for any particular purpose (Yiktown Properties Ltd v Jeon Bok Sool)

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