Imagine you’ve found your dream property and signed a contract to buy it. The deal is almost finalized when the seller suddenly backs out, deciding they no longer want to sell. You’re left frustrated because no other property compares due to its location and unique features.
In such cases, specific performance might be the most appropriate remedy for the breach of contract. Specific performance compels a party to fulfill their obligations under a contract rather than simply paying monetary damages.
The particulars of your case matter
Certain conditions must be met for the court to order specific performance. First, the real estate contract must be legally binding with clear, enforceable terms and signatures from both parties.
Second, the seller must have breached the contract by failing to meet their obligations. In this case, the seller pulled out of the sale, and monetary damages cannot fully compensate you due to the unique nature of the property.
Lastly, you must have substantially performed your obligations or assured you’re going to do so. This might include making the down payment or securing financing for the property.
Specific performance is not guaranteed
Specific performance is an equitable remedy that is only available when damages, such as monetary compensation, are inadequate. The equitable nature of the remedy gives judges broad discretion to decide whether or not to apply it. They will evaluate the facts of each case, including the fairness of the agreement and whether both parties acted in good faith.
For instance, if the contract is vague or enforcing this remedy would result in undue hardship, the judge may instead award monetary damages as an alternative remedy.
Seeking legal guidance is crucial when considering specific performance following a breach of a sale agreement. Such real estate disputes often hinge on technical details, and even seemingly minor aspects of the contract can make or break your case.