A Tucson seller breaches a purchase contract by refusing to convey title after the buyer has performed all obligations and obtained financing. The property has appreciated $15,000 since contract signing. What remedy is the buyer most likely to pursue successfully?
Correct Answer
A) Specific performance to compel the sale
Correct: A - Specific performance to compel the sale. Specific performance is the preferred remedy when sellers breach real estate contracts because each parcel of real estate is considered unique under Arizona law, making monetary damages inadequate. Why not B: This option is incorrect because "Monetary damages for the price difference" does not match the rule tested by the question. The correct answer is "Specific performance to compel the sale". Specific performance is the preferred remedy when sellers breach real estate contracts because each parcel of real estate is considered unique under Arizona law, making monetary damages inadequate. Why not C: This option is incorrect because "Rescission and restitution of all costs" does not match the rule tested by the question. The correct answer is "Specific performance to compel the sale". Specific performance is the preferred remedy when sellers breach real estate contracts because each parcel of real estate is considered unique under Arizona law, making monetary damages inadequate. Why not D: This option is incorrect because "Punitive damages for bad faith breach" does not match the rule tested by the question. The correct answer is "Specific performance to compel the sale". Specific performance is the preferred remedy when sellers breach real estate contracts because each parcel of real estate is considered unique under Arizona law, making monetary damages inadequate.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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