YEONG AH CHEE @ YAN HON WAH v. LEE CHONG HAI & ANOR. AND 13 OTHER APPEALS [1994] 3 CLJ 20 SC, PEH SWEE CHIN SCJ:
It is an old and well-settled rule of equity that under a valid contract for sale of land, the beneficial ownership of the land passes to the purchaser who becomes the equitable owner, the vendor having a right to the purchase money for which he has a lien on the land. Please see Lysaght v. Edwards [1976] 2 Ch D 499 and this case was cited with approval very often in our courts e.g. by the Federal Court in Intercontinental Miners Sdn. Bhd. v. Society Des Etains De Banjas Tudgu [1974] 1 MLJ 145 and Temenggong Securities Ltd. v. Registrar of Titles, Johore [1974] 2 MLJ 45. When the full purchase price is paid, the vendor becomes a bare trustee i.e. unqualified trustee for the purchaser. It is also of salutary effect to remind ourselves of the fact that rules of equity apply to this country by the Civil Law Act 1956 and of the observation of Lord Russel of Killowen in Oh Hiam v. Tham Kong [1980] 2 MLJ 159, PC that “the Torrens system is designed to provide simplicity and certitude in transfer of land which is amply achieved without depriving equity of the ability to exercise its jurisdiction in personam on grounds of conscience”.
