Specific Performance in Real Estate Contracts
Specific performance is an optional remedy available to enforce contracts. In lieu of monetary damages for breach of contract, a party may seek to compel performance of the contract and to receive the fruits of the performed contract. The remedy of specific performance is not available in most contracts and a party must accept monetary damages as the remedy.
Purchase of Real Property
An exception to the general rule concerns the purchase of real property. In the law, real property is considered “unique,” and therefore damages may not be an adequate legal remedy. If a party to a real property purchase agreement wants to specifically enforce the contract rather than receive monetary damages, the remedy is permissible. Examples of seeking specific performance include whether the real property is truly unique, and if the buyer wants the property for reasons other than price. However, price may also be a motivating factor–especially when the real property is rapidly appreciating–or if the purchase price was below market value.
Let Us Help You
If you are looking to buy property, we encourage you to contact an experienced attorney from NewPoint Law Group to assist in the development of a contract and guide you through the process. To schedule a free consultation, call 1-800-358-0305 or message us online.