Cheung Kong gets $20m from defaulting buyers
Cheung Kong (Holdings) said it has successfully claimed a total of $20 million from buyers who defaulted on more than 10 transactions following the slump in property prices.
The firm said earlier it had the legal right to seek the difference between the original purchase price and the resale price from buyers who walked away from their deals.
The company said yesterday that many defaulting buyers had initiated talks with the company to settle the claims.
A spokesman said the talks had proceeded in a smooth and friendly manner, because the buyers understood the benefits of honouring their contractual obligations.
Cheung Kong took the lead in November last year in suing defaulters at its Maywood Court project in Tin Shui Wai for damages.
Analysts said that, if the defaulters had not responded to Cheung Kong's action, they would face arbitration by the courts, which could cost them even more.
Former president of the Society of Hong Kong Real Estate Agents Tony Chan Tung-ngok welcomed the results of the talks between Cheung Kong and the defaulters.
He said the downturn in the property market had inflicted pain on buyers and developers.
'Upholding of obligations specified in the sale and purchase contracts is at all times crucial in ensuring the efficiency and fairness of the market, no matter whether it is on the upturn or downturn,' Mr. Chan said.
Cheung Kong said the amount it had claimed in each case ranged from $600,000 to $1 million.
It said it expected to be approached by more defaulters in the near future to settle claims.
