Question: What is a suit for specific performance in real estate?

A suit for specific performance of contract often relates to the buying and selling of real estate. If a property buyer gets cold feet and doesn’t want to go through with a deal, then the seller is entitled to file a lawsuit to oblige the buyer to carry through with the terms and conditions of the contract they signed.

What is specific performance suit?

Specific performance is a remedy developed by principle of equity. A party to a contract who is damaged because the contract is breached by another party has the option to file a suit for specific performance compelling to perform his part of contract.

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.

Can you sue for specific performance real estate?

While sellers can sue for specific performance against a buyer over a failure to perform on a real estate contract, the remedy is rarely applicable and even more rarely sought. … These provisions protect the seller from a buyer’s breach by providing a simple money damages remedy, rather than a forced sale.

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When can a seller sue for specific performance?

When a buyer defaults, a seller has the option to sue for specific performance. This is an equitable remedy and an alternative to collecting monetary damages. It is a claim that is pursued through litigation, and if it is granted, a court will order a buyer to go to closing on a home.

Can a buyer sue for specific performance?

Suing for Specific Performance as a Buyer

The buyer is allowed to sue for specific performance if the seller refuses to move forward with her obligations under the agreed upon contract.

How do you prove 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. at 39, 173 P.

Who can claim specific performance?

Specific performance means fulfilling a promise made under a contract as agreed. A suit for specific performance can be filed by any party, in a court of competent jurisdiction, who has suffered loss due to non-performance of contract on part of the other party to the contract.

How is specific performance enforced?

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.

What happens when you sue for specific performance?

When a party wins a Specific Performance lawsuit, the court will seek to put the parties in the position they would be in if the contract had been performed pursuant to its terms. This means the court will order the sale of the property at the price and terms agreed upon.

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What is the limitation for filing suit for specific performance?

The Limitation Act provides for a limitation period for a suit of specific performance of agreement of sale of immovable property in Article 54 and the said period of limitation is of three years for the purpose of filing the suit for specific performance.

What are the limitations of using specific performance?

Specific performance is impossible. The contract is too vague to be enforced. The contract was terminable at will (meaning either party can renege without notice). The contract required constant supervision.

How do you avoid specific performance?

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.

Can you claim specific performance and damages?

Specific performance is a primary remedy for breach of contract available for the aggrieved party. … Plaintiff has a right of election whether to claim specific performance from the defendant or damages for breach of contract. The defendant does not enjoy any choice in this matter.