There are two possible categories of remedies when a party breaches a real estate contract, equitable and monetary. An equitable remedy requires the breaching party to do something or refrain from doing something. A monetary remedy requires the breaching party to pay the other party monetary damages.
Specific performance is an equitable remedy that can be ordered by a court when a contract is breached. Specific performance forces the breaching party to perform the contract pursuant to the terms of the contract.
Specific performance is a remedy that is often available to both buyers and sellers in a real estate contract, but it is most commonly used by buyers. Whether specific performance is an available remedy depends on the terms of the contract. A real estate contract can exclude specific performance as an available remedy.
The most common specific performance lawsuit in a real estate transaction is where the seller refuses to close and the buyer sues the seller for specific performance. The buyer’s specific performance lawsuit asks the court to force the seller to sell the seller’s property to the buyer pursuant to the terms of the contract.
Elements of specific performance:
- Contract – Existence of a valid contract must be proven by clear, definite, and certain evidence.
- Complied with conditions – Non-breaching party complied with the conditions of the contract and performed its contractual obligations or was excused from performing because of the breaching party’s anticipatory breach. The non-breaching party must have been ready, willing, and able to close the transaction.
- Failure to perform – The breaching party failed to perform their contractual obligations.
- Inadequate remedy – Money damages are an inadequate remedy. Real property is unique, which is why money damages is often an inadequate remedy in a real estate transaction.
The goal of a specific performance lawsuit is not to compensate the injured party, instead, the goal is to force the breaching party to perform its contractual obligations.
Be aware that the statute of limitations in Florida for specific performance is one year.