A seller in Richmond, Kentucky enters into a written purchase contract with Buyer A for $310,000. Before closing, the seller — without disclosing the existing contract — also enters into a second written purchase contract with Buyer B for $325,000. When Buyer A discovers this and sues for specific performance, which of the following best describes the likely outcome under Kentucky law?
Correct Answer
A) Buyer A will succeed in obtaining specific performance because the first signed contract has priority and real property is considered unique under Kentucky law
Under Kentucky law, real property is considered unique, and specific performance is an available equitable remedy for breach of a real estate purchase contract. Because Buyer A entered into a valid, enforceable written contract first, and the seller's subsequent contract with Buyer B was entered into in breach of that first contract, Buyer A has a strong claim for specific performance. Kentucky courts recognize that monetary damages may be inadequate for the loss of a unique parcel of real property, making specific performance the appropriate remedy.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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