A buyer and seller in Worcester, Massachusetts execute a Purchase and Sale Agreement (P&S) for $465,000. The P&S contains no contingencies. Before closing, the seller discovers a buyer who will pay $490,000 and refuses to close with the original buyer. The original buyer seeks damages. Under Massachusetts law, which remedy is most likely available to the original buyer, and why?
Correct Answer
C) Specific performance or monetary damages, because the buyer holds an enforceable written contract for a unique parcel of real property
When a seller breaches a valid, enforceable written Purchase and Sale Agreement in Massachusetts, the buyer has two primary remedies: (1) specific performance — a court order compelling the seller to convey the property — because real property is considered unique and monetary damages are deemed inadequate; or (2) monetary damages for the seller's breach. The buyer's choice of remedy depends on the circumstances, but both are available. The seller's desire to sell to a higher bidder does not extinguish the buyer's contractual rights under the enforceable P&S.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
More Contracts Questions
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Specific performance in North Dakota:
- → In a contract for deed (land contract), who retains legal title to the property until the purchase price is fully paid?
- → Which of the following is NOT required for a valid bill of sale?
- → A Nevada real estate salesperson is helping a buyer draft a purchase agreement. Which of the following is NOT a required element for a Nevada residential purchase agreement to be legally enforceable?
- → Sawyer Iverson is reviewing an Illinois issue in Joliet. The person assumes that attorney review automatically replaces every inspection, appraisal, or financing deadline in a standard Illinois residential contract. Which statement best applies?
- → Tom and Linda sign a purchase agreement for a home in Hartford, Connecticut. The agreement includes a financing contingency stating that if Tom cannot obtain a mortgage commitment within 21 days, either party may void the contract. On day 19, Tom's lender issues a written mortgage commitment. On day 22, Tom changes his mind and tries to void the contract by claiming the financing contingency was not satisfied. Which of the following best describes the legal status of the contract?
- → Avery Jenkins is reviewing an Illinois issue in Normal. The person asks what happens if neither attorney sends a disapproval or proposed change during the standard review period. Which statement best applies?
- → Under Montana law, a purchase agreement for residential real property becomes legally binding on the seller when which of the following occurs?
- → Johnny wants the seller's patio furniture included in his purchase of a house. Before the offer is signed and delivered to the seller, he asks his agent to attach a page covering the furniture to the offer. That attached page is best described as:
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