By Elena Chong, Courts Correspondent

AFTER agreeing to buy a house in Changi, a young couple found out about an unauthorised structure and asked the buyers to regularise it and defer completion.

But the High Court dismissed, with costs, the application of Mr Mervyn Lim We Jin and his wife, Ms Jessie Tham Yi Min, for damages on Wednesday.

The sellers, civil servants Jason Teo Shen Yuan and Chan Sue Li, had through their agent, advertised a one-and-a-half storey terrace house for sale last November.

Mr Lim and his wife viewed the property and paid a 5 per cent deposit after agreeing to buy it for $1.18 million.

Completion was set for April 2.

But the sale did not go through as the buyers had found out earlier this year that there was an extra storey added that was unauthorised.

They wanted the sellers to regularise the works and bear the cost of the alterations, and also push the completion of the transaction to later.

The defendants' lawyer, Ms Foo Soon Yien from Harry Elias Partnership, argued that at the time of the contract last November, there was no notice or order from the BCA.

Even if there was, it was irrelevant as it was, at best, a potential liability. Also, it came after the contract of sale and purchase.

Ms Foo said Mr and Mrs Lim's alleged claims for the illegal works and for compensation were misconceived.

So was their claim that the unauthorised work was an encumbrance.

The plaintiffs had failed to insert a special clause in the contract to protect themselves by cancelling the contract if any illegal structure was found.

Counsel submitted that once the option was exercised, the risk of the property passed to the buyer.

Now the ball is in the buyers' court. They will have to complete the sale and purchase and pay interest for delayed completion.

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