Chong Sze Pak v Chong Ser Yoong: HDB Flat Trust Dispute
In Chong Sze Pak v Chong Ser Yoong, the High Court of Singapore addressed a dispute between two brothers, Chong Sze Pak (Plaintiff) and Chong Ser Yoong (Defendant), regarding the beneficial ownership of a Housing and Development Board (HDB) flat. The Plaintiff claimed the net sale proceeds of the flat, arguing that the Defendant held the property in trust for him due to the Plaintiff's payments of the property's outgoings. The Defendant denied the trust and asserted that such a trust would be void under the Housing and Development Act. The court dismissed the Plaintiff's claim, finding that the express trust was void under the HDA and rejecting the claims of resulting or constructive trust. The court ordered the net sale proceeds held by the Defendant's solicitors to be released to the Defendant.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiff's claim is dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
A dispute between brothers over the ownership of an HDB flat held in trust. The court dismissed the plaintiff's claim, citing the Housing and Development Act.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Chong Sze Pak | Plaintiff | Individual | Claim Dismissed | Lost | |
| Chong Ser Yoong | Defendant | Individual | Order for sale proceeds to be released to the Defendant | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Gurdaib Singh | Gurdaib, Cheong & Partners |
| James Joseph | Prestige Legal LLP |
4. Facts
- Plaintiff and Defendant are brothers.
- Plaintiff claims net sale proceeds from the sale of an HDB flat registered in Defendant's name.
- Plaintiff alleges an agreement that Defendant would hold the property in trust if Plaintiff paid outgoings.
- Defendant denies the trust and claims the property belongs to him.
- A Trust Deed was executed by the Defendant.
- The Housing and Development Act prohibits trusts without prior written approval.
- Plaintiff was not eligible to purchase an HDB flat at the time of the initial property purchase.
5. Formal Citations
- Chong Sze Pak v Chong Ser Yoong, Suit No 539 of 2010, [2011] SGHC 42
6. Timeline
| Date | Event |
|---|---|
| Plaintiff's property at 44B Starlight Road acquired; Plaintiff received compensation. | |
| Defendant sold his HDB flat at Block 77 Commonwealth Drive. | |
| Defendant agreed to buy an HDB flat at Block 8 Tronoh Road. | |
| Deed of Trust executed by the Defendant. | |
| Power of Attorney executed by the Defendant in favor of the Plaintiff. | |
| Sale and purchase of Tronoh Road property completed. | |
| Tronoh Road property acquired by the relevant authority. | |
| McNair Road property transferred to the Defendant. | |
| Plaintiff lodged a caveat in respect of the McNair Road property. | |
| Completion of sale and purchase of the McNair Road property. | |
| Judgment reserved. |
7. Legal Issues
- Validity of Trust
- Outcome: The court held that the express trust in favour of the Plaintiff and his son was null and void due to contravention of the Housing and Development Act.
- Category: Substantive
- Resulting Trust
- Outcome: The court rejected the Plaintiff's claim under a resulting trust.
- Category: Substantive
- Constructive Trust
- Outcome: The court rejected the Plaintiff's claim under a constructive trust.
- Category: Substantive
8. Remedies Sought
- Net sale proceeds of the McNair Road property
9. Cause of Actions
- Breach of Trust
- Resulting Trust
- Constructive Trust
10. Practice Areas
- Civil Litigation
11. Industries
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Cheong Yoke Kuen and others v Cheong Kwok Kiong | N/A | Yes | [1999] 1 SLR(R) 1126 | Singapore | Cited to support the conclusion that the Plaintiff's attempt to claim the sale proceeds under a resulting trust must fail. |
| Ho Seek Yueng Novel v J & V Development Pte Ltd | N/A | Yes | [2006] 2 SLR(R) 742 | Singapore | Cited in respect of a loan, but found to be irrelevant to the present action as the Plaintiff's pleaded claim is not based on a loan. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Housing and Development Act (Cap 129, 1997 Rev Ed) | Singapore |
| Housing and Development Act, s 51(4) | Singapore |
| Housing and Development Act, s 51(5) | Singapore |
| Housing and Development Act, s 51(6) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Housing and Development Board (HDB)
- Trust Deed
- Power of Attorney
- Express Trust
- Resulting Trust
- Constructive Trust
- HDB flat
- Net sale proceeds
15.2 Keywords
- HDB flat
- trust
- Housing and Development Act
- property dispute
- Singapore
- express trust
- resulting trust
- constructive trust
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Trust Law | 85 |
| Property Law | 70 |
| Housing Law | 60 |
| Contract Law | 20 |
| Civil Procedure | 15 |
| Company Law | 10 |
16. Subjects
- Trusts
- Housing
- Real Property
- Illegality