Fortune Realty v Lim Sai Kang: Area Shortfall Dispute in Property Purchase
In Fortune Realty Pte Ltd v Lim Sai Kang and Another, the High Court of Singapore addressed a dispute over a property area shortfall. Fortune Realty, the vendor, sued Lim Sai Kang and Pan Kang Moi, the purchasers, to determine if there was a shortfall in the area of a townhouse unit. The purchasers claimed a shortfall because the area of the car park lot was included in the total area. The court held that the vendor contracted to sell a residential unit of 150 square meters derived from the living space, not including the car park lot, and ruled in favor of the purchasers.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for the Defendant
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Dispute over property area shortfall. Court held Fortune Realty contracted to sell a 150 sqm living space, not including car park lot.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Fortune Realty Pte Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| Lim Sai Kang | Defendant | Individual | Judgment for Defendant | Won | |
| Pan Kang Moi | Defendant | Individual | Judgment for Defendant | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Judith Prakash | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Ranvir Kumar Singh | Kumar & Loh |
| John Ng | Tan Lee & Partners |
4. Facts
- Fortune Realty was the developer of Fortune View.
- Lim Sai Kang and Pan Kang Moi purchased unit 33 in Fortune View.
- Dispute arose over whether the area of unit 33 included a car park lot.
- The sale and purchase agreement stated the floor area of unit 33 was 150 square meters.
- The SSCT for unit 33 referred to two lots: a main lot of 138 square meters and an accessory lot of 13 square meters for the car park.
- Purchasers claimed a shortfall of 12 square meters in the floor area.
- The purchasers specifically chose unit 33 because it did not have a basement.
5. Formal Citations
- Fortune Realty Pte Ltd v Lim Sai Kang and Another, OS 601428/2001, [2002] SGHC 59
6. Timeline
| Date | Event |
|---|---|
| Agreement dated for the sale and purchase of unit 33 | |
| Vendors' solicitors informed the purchasers' solicitors that the duplicate SSCT in respect of Unit 33 had been issued | |
| Decision Date |
7. Legal Issues
- Breach of Contract
- Outcome: The court held that the vendors breached the contract by misrepresenting the area of the property.
- Category: Substantive
- Sub-Issues:
- Misrepresentation of property area
- Interpretation of Contract Terms
- Outcome: The court interpreted the contract terms in favor of the purchasers due to ambiguity in the description of the property.
- Category: Substantive
- Sub-Issues:
- Ambiguity in contract description
- Application of contra proferentem rule
8. Remedies Sought
- Adjustment of purchase price
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Property Law
11. Industries
- Construction
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Land Titles (Strata) Act (Cap 158) | Singapore |
| Building Control Act 1989 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Floor area
- Building unit
- Accessory lot
- Townhouse
- Shortfall
- Subsidiary Strata Certificate of Title
- Basement car park
15.2 Keywords
- property
- area
- shortfall
- contract
- townhouse
- car park
- singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Contract Law | 80 |
| Real Estate | 75 |
| Property Law | 70 |
| Sale and Purchase Agreement | 65 |
| Housing Developers | 50 |
16. Subjects
- Contract Dispute
- Property Law
- Real Estate