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A Michigan seller, David, signed a purchase agreement to sell his Grand Rapids home to buyer Maria for $320,000. David later received a higher offer and refused to close, leaving Maria without the property. Maria wants to force David to sell the home to her at the agreed price. Which remedy is Maria most likely to pursue in a Michigan court?

Correct Answer

C) Specific performance requiring David to complete the sale

Because real property is legally considered unique in Michigan, a buyer whose seller has breached a purchase agreement may seek specific performance—a court order compelling the seller to convey the property as agreed. Maria's desire to obtain this specific home, not just money damages, makes specific performance the most appropriate remedy. Michigan courts regularly grant specific performance in seller-breach scenarios involving real estate.

Answer Options
A
Liquidated damages equal to twice the earnest money deposit
B
Compensatory damages equal to the difference between the contract price and the current market value
C
Specific performance requiring David to complete the sale
D
Rescission of the contract and return of all closing costs paid

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Related Topics & Key Terms

Key Terms:

specific_performanceseller_breachequitable_remedybreach_remedies

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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