A
beauty salon owner, Madam Pan Ying, purchased a commercial unit at D'Leedon condominium for nearly $1.6 million, believing the premises to be 818 sq ft based on past transaction data and title search results. However, the usable floor area turned out to be only 619 sq ft due to the unique calculation method used for properties with sloping walls. The lot area is calculated based on the larger of the ceiling or floor areas, resulting in a discrepancy between the listed size and actual usable space.
Madam Pan sued her real estate agent Jasmine Xu, ERA Realty Network, vendor PLS Holdings, and others over the issue. However, the lawsuit was dismissed by the High Court, with Judicial Commissioner Mohamed Faizal ruling that there was no evidence of misrepresentation by Ms Xu. The judge noted that both parties were misled by the developer's marketing materials and that a conscientious property agent could not have anticipated this unusual situation.
The case highlights the importance of vigilance in property transactions, particularly when dealing with unique properties like those at D'Leedon. Madam Pan had operated her beauty salon at the condominium since 2015 and was interested in expanding to larger premises. The unit she purchased was tenanted and used as a clinic, and it wasn't until late 2021 that the actual usable floor area became apparent during renovations.
Madam Pan claimed damages of over $590,000 from Ms Xu and ERA Realty Network, citing misrepresentation and vicarious liability. However, the judge found her claims to be "extremely vague" and noted that text messages between Madam Pan and Ms Xu showed they were both misled by the developer's marketing materials. The case was deemed so rare that even a joint expert witness had never seen such a situation before.
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