Specific Performance in Real Estate Contracts | Real Estate Attorneys in Roseville, CA

What Is Specific Performance?

Specific performance is a legal remedy that compels a party to fulfill its obligations under a contract rather than simply paying money damages for its breach. In most types of contracts, courts award monetary damages when a party fails to perform—specific performance is the exception rather than the rule. Real estate is one of the most important exceptions to that general principle.

Why Does Specific Performance Apply to Real Estate?

California courts recognize that real property is legally “unique.” No two parcels of real estate are identical, and money alone may not adequately compensate a buyer who wanted a specific property. Because of this legal principle, both buyers and sellers in California real estate transactions may seek to compel the other party to complete the sale when a breach occurs.

When Can a Buyer Seek Specific Performance?

A buyer may pursue specific performance when a seller refuses to complete the sale after the parties have entered into a binding purchase agreement. Common scenarios include:

• The seller receives a higher offer after signing a contract and attempts to back out

• The property is rapidly appreciating in value and the buyer wants the property at the agreed price

• The property has unique characteristics that make money damages an inadequate substitute

To succeed on a specific performance claim, the buyer must generally show that the contract is valid and enforceable, that the buyer performed or was ready to perform under the contract, and that money damages would be an insufficient remedy.

When Can a Seller Seek Specific Performance?

Sellers may also seek specific performance against a buyer who refuses to close escrow. However, sellers more commonly rely on liquidated damages clauses and deposit forfeiture provisions in the purchase agreement. Whether specific performance or liquidated damages is the appropriate remedy for a seller depends on the contract language and the circumstances of the breach.

Specific Performance vs. Money Damages

Parties pursuing a real estate breach of contract claim must evaluate whether specific performance, money damages, or both are appropriate remedies given their goals. A buyer who truly wants the property may prioritize specific performance. A buyer who has moved on may prefer to recover damages for the costs incurred in a failed transaction. Our attorneys help clients assess their options and build the strongest case for their chosen outcome.

NewPoint Law Group’s Specific Performance Practice

Our Roseville real estate attorneys have experience representing both buyers and sellers in specific performance disputes. Whether you are seeking to enforce a purchase agreement or defend against a specific performance claim, we provide strategic advice and skilled courtroom advocacy throughout the process.