What is an example of specific performance in real estate?

What is an example of specific performance in real estate?

Specific Performance: Overview When a contract is for the sale of a unique property, for instance, mere money damages may not remedy the purchaser’s situation. Example: Rina offers to buy Beth’s house and Beth accepts, but later decides to keep the property. Real estate is considered to be unique.

What is specific performance in property law?

A contractual remedy in which the court orders a party to actually perform its promise as closely as possible, because monetary damages are somehow inadequate to fix the harm. Most commonly ordered in cases involving real property and rare chattels.

How do you prove specific performance?

The court set out the elements required to state a claim for specific performance: “(1) a contract sufficiently definite and certain in its terms to be enforced [citations]; (2) that the contract was just and reasonable [citations]; (3) that the plaintiff has performed his side of the bargain; (4) that the promisor has …

Who can enforce specific performance?

“The specific performance of a contract shall be enforced by the court subject to the provisions contained in sub-section (2) of section 11, section 14 and section 16.” Comment: The amendment in Section 10 has now reduced the discretionary jurisdiction of the Court in granting specific performance of contract.

What is an order of specific performance?

Under an order of specific performance, one party to a contract is ordered to perform their contractual obligations. An injunction is a court order to a party to refrain from doing, or possibly to do, a particular act.

When can a court order specific performance?

Requirements for Specific Performance: Courts will enforce specific performance only if the underlying contract was “fair and equitable.” It is up to the plaintiff to demonstrate that the contract was an appropriate one, legal, with each party receiving fair consideration for performance.

How do you defend against specific performance?

Mistakes and misrepresentations in the terms of a contract might constitute a defense against specific performance. If such mistakes are sufficient to justify RESCISSION of a contract, they are sufficient to prevent the enforcement of the contract. A court will enforce only a contract with definite and certain terms.

How do you avoid specific performance?

How Sellers Can Protect Themselves. The seller should talk to their agent about including language in the purchase and sale agreement to avoid the claim of specific performance. Waivers of claims of specific performance in the purchase and sale agreement will stand in court and save the seller substantial heartache.

What is specific performance of a contract when can a specific performance of a contract Cannot be enforced?

Specific performance of a contract cannot be enforced in favour of a person: (a) who has obtained substituted performance of contract under section 20 or (b) who has become incapable of performing, or violates any essential term of, the contract that on his part remains to be performed, or acts in fraud of the contract …

What are the elements of specific performance?

Succinctly, specific performance is available when there exists: 1) a valid and binding contract; 2) definite and certain terms; 3) mutuality of obligation and remedy; 4) freedom from fraud and overreaching; and 5) lack of remedy at law. Shreeve, 65 Ariz.

What does specific performance mean in real estate contracts?

When one party to a sales agreement breaches the contract by not performing as required by the contract’s terms, the harmed party often does not want monetary damages but desires actual performance. Such a demand is called “specific performance.” Specific performance is an order by a court that a contract be fully performed according to its terms.

Can a home purchaser use ” specific performance “?

There are two primary types of relief that courts will award: (i) money damages and (ii) specific performance. Money damages are the most common type of legal remedy in a home purchase situation. They compensate the injured party for the financial consequences of the sale falling through.

What do you need to know about specific performance?

To obtain specific performance, the buyer must show that he or she was ready and able to perform at the closing. Most importantly, this means that the buyer must show that he or she had appropriate financing, whether in the form of cash or from a lending institution.

When do you need specific performance from seller?

A buyer may also obtain specific performance from the seller when the seller can’t convey all of the property covered by the contract, such as when the parcel owned is smaller in area than that agreed to be sold, or when additional defects in title are uncovered.