What happens when one party to a purchase agreement fails to honor their obligations under the contract? In real estate, the aggrieved party can go to court and seek a court award for specific performance, which compels the offending party to perform under the contract. Specific performance is a specialized legal remedy used and awarded by courts when monetary damages will not adequately compensate the aggrieved party. The thought is that real estate, by its very nature, is unique, and monetary damages are very difficult to assess. Instead of money, the aggrieved party wants the actual performance of the contract. Therefore, the court’s only remedy is to compel compliance under the contract.

For a court to award specific performance, several legal elements must be met. They are:

First, there must be a valid and binding contract. Without this, there is no breach leading to a need for a remedy.

Second, specific performance is only available when monetary damages would be inadequate compensation. When specific performance is ordered, monetary damages are not usually ordered as both remedies are not usually entitled together.

Third, mutuality of an obligation is required. This means that both parties have undertaken duties to one another as part of the contract.

Finally, the moving party must have substantially performed their part of the contract, and that they can continue to perform their duties.

Real estate transactions alone can be very stressful. When another party stops upholding their end of the bargain, you only worry more. Don’t let this get the best of you, stay calm, and ask an experienced real estate attorney for the best way to move forward and see if specific performance may be an option for you. Soble law has a team of dedicated real estate attorneys who will advocate for your legal and real estate rights.