Real Estate Disputes and Specific Performance on Contracts
Are you involved in a real estate dispute, as either the buyer or the seller, where you want the other party to follow through on the signed contract? Under California law, you might be able to sue for Specific Performance. Generally, once a seller and buyer agree on a price for a property and a real estate contract is signed, the contract is legally binding. However, if issues arise during escrow, one party may look to legal remedies to force the other party to do something.
Buyer’s Remedy of Specific Performance
If the seller of real estate in Los Angeles is able but unwilling to perform on the contract, the buyer may bring a lawsuit for specific performance. CA courts generally recognize that each parcel of land is unique and that a monetary award would be inadequate and will order the seller to convey the property to the buyer, according to the terms of the contract.
A buyer may also seek 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 in the signed contract or when some defects in title are uncovered. The seller may be compelled to perform to the extent possible, with an abatement (reduction) of the purchase price to compensate for the defect or deficiency. The amount of the abatement is usually equivalent to the value of the property not conveyed.
To obtain specific performance, the buyer must show that he or she was ready and able to perform at the closing.
Seller’s Remedy of Specific Performance
Alternatively, the seller of real property may file a lawsuit against a defaulting buyer for specific performance of the sales contract. The relief actually obtained by the seller is the recovery of money (because the court can only enter a judgment requiring the payment of the purchase price amount). Generally, a seller who retains the buyer’s down payment can sue for specific performance. However, if the contract provides for a specific, exclusive remedy in the event of the buyer’s breach, the seller is precluded from bringing a lawsuit for the purchase price.
In all cases, specific performance is granted at the court’s discretion. The court will only grant such relief if there is a valid contract between the parties and if the buyer has signed the contract. Moreover, all of the conditions of the contract applying to the seller must have been performed. twaters,att.
Are you involved in a real estate dispute, as either the buyer or the seller, where you want the other party to follow through on the signed contract? Under California law, you might be able to sue for Specific Performance. Generally, once a seller and buyer agree on a price for a property and a real estate contract is signed, the contract is legally binding. However, if issues arise during escrow, one party may look to legal remedies to force the other party to do something.
Buyer’s Remedy of Specific Performance
If the seller of real estate in Los Angeles is able but unwilling to perform on the contract, the buyer may bring a lawsuit for specific performance. CA courts generally recognize that each parcel of land is unique and that a monetary award would be inadequate and will order the seller to convey the property to the buyer, according to the terms of the contract.
A buyer may also seek 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 in the signed contract or when some defects in title are uncovered. The seller may be compelled to perform to the extent possible, with an abatement (reduction) of the purchase price to compensate for the defect or deficiency. The amount of the abatement is usually equivalent to the value of the property not conveyed.
To obtain specific performance, the buyer must show that he or she was ready and able to perform at the closing.
Seller’s Remedy of Specific Performance
Alternatively, the seller of real property may file a lawsuit against a defaulting buyer for specific performance of the sales contract. The relief actually obtained by the seller is the recovery of money (because the court can only enter a judgment requiring the payment of the purchase price amount). Generally, a seller who retains the buyer’s down payment can sue for specific performance. However, if the contract provides for a specific, exclusive remedy in the event of the buyer’s breach, the seller is precluded from bringing a lawsuit for the purchase price.
In all cases, specific performance is granted at the court’s discretion. The court will only grant such relief if there is a valid contract between the parties and if the buyer has signed the contract. Moreover, all of the conditions of the contract applying to the seller must have been performed. twaters,att.