Father-and-daughter duo’s S$1.2m claim for full refund denied by court, ruling in favor of Wingcrown Investment’s contractual rights
In a legal dispute involving a condominium purchase in Singapore, a father-and-daughter pair from China, Li Jialin and Li Suinan, sought a full refund of nearly S$1.2 million they had paid for a unit at The Crest, a development by Wingcrown Investment. The duo had initially entered into a sale and purchase agreement for the property in December 2015 but failed to complete the transaction after a series of events, including the misappropriation of funds by their property agent.
The case arose from two failed attempts to buy the property. The first transaction, which was terminated in March 2018 due to non-payment, saw Wingcrown retain a 20% deposit of S$357,000 and other payments made by the pair. Despite this, both parties were still keen on completing the deal and, after negotiations, agreed to a new option to purchase (OTP) the property for a higher price of S$1.9 million. However, the father-and-daughter duo again failed to make the required payments, leading to the termination of the OTP in November 2018.
Wingcrown retained a total sum of S$1,195,354.42, which included the original S$357,000 deposit and the additional S$838,354.42. The developer refunded S$488,957.04 to the purchasers in April 2023 but held onto S$380,000 as the deposit for the aborted transaction. The pair then filed a legal claim seeking the return of the entire amount.
In its judgment, the High Court ruled in favor of the developer, citing the validity of the OTP’s termination and Wingcrown’s contractual entitlement to retain the deposit. Justice Kwek Mean Luck emphasized that the contract allowed the developer to forfeit the 20% deposit, and the remaining amount could be retained to cover expenses related to the failed transactions.
While the purchasers’ claim for a full refund was dismissed, the court’s decision reflected the legal power of contractual agreements in real estate transactions, even in the context of external issues such as the embezzlement by the property agent.
