Contracts

Specific Performance

A court order requiring a party who breached a real estate contract to actually complete the transaction.


Definition

Specific performance is an equitable remedy available when money damages are insufficient. Because every parcel of real estate is unique, courts may order a breaching party to fulfill the contract rather than simply pay damages. It is most commonly sought by buyers forcing a reluctant seller to complete the sale. Sellers typically prefer liquidated damages — retaining the earnest money.

Exam Tip

Specific performance is available because land is unique. It is more commonly sought by buyers than sellers.

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