Court of Appeal sets rules for land sale completion

The Court of Appeal has established that land buyers cannot demand the completion of a property sale through specific performance without first honoring their own contractual obligations. The ruling clarifies that specific performance is an equitable remedy, not an automatic legal right, and requires the applicant to demonstrate they have performed or are ready and willing to perform the essential terms of the agreement.

The decision stemmed from a dispute where a purchaser sought to compel a seller to complete a transaction despite having paid only a portion of the agreed price. The court also noted the purchaser's attempt to subdivide and sell parts of the property before legally acquiring the title, which constituted a breach of the agreement.

In this specific case, the court found that both parties had breached their obligations: the purchaser failed to pay the outstanding balance on time, while the seller failed to provide necessary completion documents. Consequently, the court ruled that a party cannot demand transaction completion while ignoring its own contractual failures. Additionally, the judges addressed the doctrine of lis pendens, noting that its protection depends on the outcome of the underlying dispute and cannot be used to invalidate dealings if the party ultimately loses the case.