Specific Performance
A legal remedy where a court orders a party to fulfill their obligations under the contract rather than just paying money damages. In real estate, this could mean a court ordering the builder to complete and sell the home as agreed.
Detailed Explanation
Specific performance is an equitable remedy that courts can grant when money alone would not adequately compensate the injured party. Because each piece of real estate is considered unique, specific performance is more common in real estate disputes than in other types of contract cases.
In theory, if a builder tried to back out of your purchase agreement, you could ask a court to order the builder to complete the sale. In practice, this is difficult to obtain and rarely pursued by individual homebuyers.
Some builder contracts include provisions that waive the buyer's right to seek specific performance, limiting you to money damages only if the builder breaches the contract.
In Your Contract
Look for references to "specific performance" in the remedies or default sections of your contract. Some contracts explicitly state that specific performance is not an available remedy.
Key Points
- 1Specific performance forces the other party to fulfill the contract rather than just pay damages.
- 2It is more commonly available in real estate due to the uniqueness of property.
- 3Some builder contracts waive your right to seek specific performance.
- 4In practice, it is difficult and expensive to obtain.
- 5Courts grant it at their discretion — it is not guaranteed even if your contract allows it.
Related Content
Have a new construction contract? Scan it for $49 at fineprint.homes
Scan Your Contract