Weekly review: 22nd – 26th October 2012

Building Management Ordinance: Deed of Mutual Covenant: Owners’ Corporation

Knowledge of the terms of the DMC is imputed to owners. The Owners’ Corporation has a duty to enforce the terms of the DMC (Jing Hui Garden v Ng Kei Sang).

Land Registration Ordinance; lis pendens; shares in company formed to hold property

It is possible to register a lis pendens when there is a dispute over the ownership of shares in a company formed to hold title to real property (Lau King Teng v Cheng Miu Har).

Leases: forfeiture: break clause

Where a landlord exercises the right to terminate in a break clause and then forfeits before the expiry of the notice period it is at least arguable that the landlord can no longer recover possession in reliance on the break clause and the notice served (Far East Consortium v Full Wealthy International Ltd).

Waiver: mistake

Where an agreement (here an agreement to waive a past breach of a lease term) is entered into as a result of a common mistake then it is void / voidable (Favourable Issue Co Ltd v Secretary for Justice).

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