Specific performance means that a court orders the parties to a contract to keep the promises made in the agreement. Real estate contract specific performance requires the buyer and seller to a real estate sales contract to complete the transaction set out in the agreement, according to Find Law.
What is performance in real estate?
Specific performance is a common remedy for a failed purchase and sale of real property. By initiating a specific performance cause of action, the buyer or seller of real property asks the court to compel the other party to perform its contractual obligation to either buy or sell the property.
What is an example of specific performance in real estate?
Specific Performance: Overview
When a contract is for the sale of a unique property, for instance, mere money damages may not remedy the purchaser’s situation. Example: Rina offers to buy Beth’s house and Beth accepts, but later decides to keep the property. Real estate is considered to be unique.
What is a suit for specific performance in real estate?
A suit for specific performance of contract often relates to the buying and selling of real estate. If a property buyer gets cold feet and doesn’t want to go through with a deal, then the seller is entitled to file a lawsuit to oblige the buyer to carry through with the terms and conditions of the contract they signed.
When can a buyer sue for specific performance?
The buyer is allowed to sue for specific performance if the seller refuses to move forward with her obligations under the agreed upon contract.
Can seller get specific performance?
Although it is unusual, a seller also has a legal right to bring an action for specific performance against a defaulting buyer under California law. … This means that the seller can typically elect whether to pursue monetary remedies or the remedy of specific performance.
Can seller sue buyer specific performance?
When a buyer defaults, a seller has the option to sue for specific performance. This is an equitable remedy and an alternative to collecting monetary damages. It is a claim that is pursued through litigation, and if it is granted, a court will order a buyer to go to closing on a home.
Who can claim specific performance?
Specific performance means fulfilling a promise made under a contract as agreed. A suit for specific performance can be filed by any party, in a court of competent jurisdiction, who has suffered loss due to non-performance of contract on part of the other party to the contract.
What is required for specific performance?
Specific performance requires you to show that monetary damages are inadequate to compensate your claim. The item in question must be so unique that a monetary value does not adequately address the harm caused by the failure to perform.
What is difference between Replevin and specific performance?
Specific Performance Examples in Commercial Transaction
UCC statutes often use the term “replevin” interchangeably with specific performance. … Replevin rules apply to specific commercial claims in which real property, and not the monetary value of property, must be transferred in a dispute.
What happens when you sue for specific performance?
When a party wins a Specific Performance lawsuit, the court will seek to put the parties in the position they would be in if the contract had been performed pursuant to its terms. This means the court will order the sale of the property at the price and terms agreed upon.
How do you avoid specific performance?
The seller should talk to their agent about including language in the purchase and sale agreement to avoid the claim of specific performance. Waivers of claims of specific performance in the purchase and sale agreement will stand in court and save the seller substantial heartache.
Is specific performance a cause of action?
Specific performance is an alternative equitable remedy to a cause of action for breach of contract. … The equitable remedy sought in an action for specific performance is a court order requiring the defendant to perform the action he or she promised to perform.
Can a buyer enforce specific performance?
Answer to this question is that a purchaser from a co-parcener can enforce specific performance of his contract against the other co-parceners.
How do you win a specific performance lawsuit?
In order to successfully fight a specific performance demand or lawsuit, the defending party must evaluate the facts and circumstances and be prepared to show that the party seeking specific performance has not met the required elements for specific performance, and more specifically show that the remedy of specific …
Is Specific performance is a legal remedy?
Specific performance is an equitable remedy in the law of contract, whereby a court issues an order requiring a party to perform a specific act, such as to complete performance of the contract.