Incorporated owners must allocate liability in accordance with the terms of the DMC

Greenwood Terrace (IO) v U-Teck Limited ([2012] HKEC 765) concerned an estate with 7 blocks. One of the blocks comprised commercial units with car parking spaces below. The roof of this commercial block had to be repaired. The managers divided the cost among the owners of the shops in the commercial block. The respondent, one of the owners, argued that the owners of the car parking spaces should be made to contribute to the cost of the repair work. The Lands Tribunal analysed the terms of the Deed of Mutual Covenant and concluded that it supported the approach of the management and did not require the owners of the car parking spaces to contribute. The Tribunal emphasised that in performing its task, the management had to observe the terms of the Deed of Mutual Covenant properly interpreted. They had done so in this case. Their contention that their interpretation was conclusive provided that it was honestly reached was rejected.

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One Response to “Incorporated owners must allocate liability in accordance with the terms of the DMC”

  1. Deep singh Says:

    like this post………

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