In Hawaii, a buyer seeks specific performance after a seller refuses to complete a real property sale. Which statement best describes how Hawaii courts treat this remedy?
Correct Answer
B) Courts may compel completion of the sale because each parcel of real property is considered unique
In Hawaii, as in all U.S. jurisdictions, real property is considered legally unique. Because no two parcels are identical — a principle especially significant in Hawaii given its limited land supply, mix of fee simple and leasehold estates, and island geography — courts may grant specific performance to compel a breaching seller (or buyer) to complete the transaction. Monetary damages are often considered an inadequate substitute when the subject matter is real property. No HREC approval is required; specific performance is a judicial remedy sought through the courts.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
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.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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