A buyer and seller in Camden, New Jersey execute a purchase agreement. The seller subsequently refuses to close without legal justification. The buyer wants to force the seller to complete the sale rather than simply recover monetary damages. Which legal remedy is most appropriate for the buyer to pursue under New Jersey law?
Correct Answer
C) Specific performance, to compel the seller to convey the property as agreed
Under New Jersey law, specific performance is the appropriate equitable remedy when a seller wrongfully refuses to close on a real estate contract. Because real property is considered unique, monetary damages are generally deemed inadequate to compensate the buyer. New Jersey courts will grant specific performance to compel the seller to convey the property according to the terms of the purchase agreement.
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Related Topics & Key Terms
Key Terms:
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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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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- → A Rhode Island licensee encounters a listing agreement lets the principal broker retain a portion of deposit money upon buyer default. What should the licensee remember?
- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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