What is "specific performance" in real estate law?

Specific performance is a remedy in real estate law that compels a party to fulfill their obligations as outlined in a contract, typically when monetary damages are not an adequate remedy. In real estate transactions, this often refers to the enforcement of a sale contract where one party seeks to compel the other party to complete the transaction as agreed. For instance, if a seller refuses to sell a property to a buyer who has fulfilled all contractual obligations, the buyer may seek specific performance to have the sale enforced.

In many cases involving real estate, unique properties hold particular significance, meaning that simply providing financial compensation would not fully address the harm suffered by the aggrieved party. Courts are more likely to grant specific performance in real estate contracts because real property is considered unique, making it more desirable to complete the sale rather than simply awarding damages. This remedy ensures that contractual agreements are honored and that the interests of the parties are adequately protected within the legal framework.