A purchase agreement for a residential property in Yankton, South Dakota is executed on March 1. The seller defaults by refusing to close on the scheduled closing date of April 15. The buyer, who has already obtained financing approval and is ready to close, wants to enforce the contract. Which remedy is MOST likely available to the buyer under South Dakota law?
Correct Answer
D) The buyer may seek specific performance to compel the seller to convey the property as agreed.
When a seller defaults on a real estate purchase agreement, the buyer has the right to seek specific performance — a court order compelling the seller to convey the property as agreed. Real property is considered unique, making monetary damages potentially inadequate. Specific performance is a well-established equitable remedy available in South Dakota for seller default on a purchase agreement. The buyer who is ready, willing, and able to perform may pursue this remedy in addition to or instead of monetary damages.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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