Specific Performance (Real Estate)

Specific Performance (Real Estate)

Specific Performance (Real Estate)

Courts order specific performance of real property contracts on the premise that each parcel is unique and damages are inadequate. The remedy requires a valid enforceable contract and the plaintiff's readiness to perform.

It is available to buyers and in most states to sellers.

Alternative Names:

Specific Performance of Real Estate Contract, Compelled Conveyance

Why it Matters?

The uniqueness presumption means a buyer need not prove damages are inadequate, which distinguishes real estate from other contracts. Seller-side specific performance is more contested, since a seller seeking the purchase price is effectively pursuing damages, though most states permit it. Contractual limitations restricting the buyer to deposit forfeiture may waive the remedy, which is a provision worth examining before assuming it is available.

Frequently asked questions

Why is specific performance available for real estate?

Why is specific performance available for real estate?

Because each parcel is presumed unique, so damages are inadequate and the buyer need not prove it.

Can the remedy be contractually waived?

Can the remedy be contractually waived?

Yes in many jurisdictions, and provisions limiting the buyer to deposit forfeiture may eliminate it.