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Sandra signed a Maryland residential purchase contract to buy a home from David. Before settlement, David refused to sell and accepted a higher offer from another buyer. Sandra wants to compel David to complete the sale. Which legal remedy is most appropriate for Sandra to pursue?

Correct Answer

C) Specific performance, which would ask a court to order David to complete the sale as agreed

Specific performance is the appropriate equitable remedy when a seller refuses to complete a real estate transaction. Because real property is legally unique, Maryland courts may order the seller to convey title as agreed under the contract. Sandra, as the non-breaching buyer, can file suit seeking specific performance to compel David to honor the original purchase agreement.

Answer Options
A
Rescission, which would cancel the contract and return both parties to their original positions
B
Liquidated damages, which would entitle Sandra to a pre-set penalty amount from David
C
Specific performance, which would ask a court to order David to complete the sale as agreed
D
Novation, which would substitute a new buyer into the contract in Sandra's place

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Related Topics & Key Terms

Key Terms:

specific_performanceseller_defaultbuyer_remedyequitable_remedy

Related Concepts

The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.

A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.

An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.

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