Specific performance is most commonly sought by buyers in real estate transactions because every parcel of real property is considered unique — no amount of money can perfectly substitute for the specific property the buyer contracted to purchase. This legal doctrine of uniqueness is why courts are more willing to grant specific performance in real estate cases than in most other types of contracts. Sellers can also seek specific performance to force a buyer to complete the purchase, though this is less common.
A seller signs a contract to sell a waterfront home for $600,000 but then receives a higher offer and refuses to close. The buyer sues for specific performance, asking the court to force the seller to convey the property as agreed. The court orders the seller to complete the sale because the waterfront property is unique.
Remember the key reason specific performance applies in real estate: all real property is legally considered unique. This is the most tested concept related to specific performance. The exam may also ask whether a seller can seek specific performance against a buyer — yes, but it is much less common. Specific performance is an equitable remedy, not a legal remedy.
Related Terms
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Frequently Asked Questions
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