A buyer and seller in Everett have a fully executed Purchase and Sale Agreement. The seller subsequently receives a higher offer from another buyer. The seller's broker tells the original buyer that the seller has 'changed his mind' and will not proceed. The original buyer sues for specific performance. Under Washington law, which statement best describes the likely outcome?
Correct Answer
A) The buyer will likely succeed because real property is unique and a court may compel the seller to convey the property
Under Washington law, specific performance is an available remedy for breach of a real estate Purchase and Sale Agreement. Because real property is considered legally unique (no two parcels are identical), monetary damages are generally considered an inadequate remedy. Washington courts have consistently held that a buyer who has a valid, enforceable PSA may seek specific performance to compel the seller to convey the property. The seller's receipt of a better offer does not excuse performance under the existing contract.
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Related Topics & Key Terms
Key Terms:
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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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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