The plaintiff must file a notice of pendency or a notice of lis pendens to prevent a subsequent transfer of the property. However, as set forth below, such an occurrence is highly unlikely. To that end, while most cases involve the buyer of real property requesting specific performance from the seller, the law recognizes that the seller has a remedy in specific performance as well. These principles were made use of and the above quote is from the recent Pennsylvania Superior Court case of Oliver v. Two recent unreported trial court decisions illustrate the point that a specific performance lawsuit can result in legal blackmail. Were the seller to convey title to a new buyer, the court would be faced with the possibility of ordering the new buyer to convey to the seller, or to determine an amount of damages sufficient to compensate the successful buyer.
The 5 Steps to Prosecute a Successful Lawsuit for Specific Performance
asks the court to force the opposing party into a. The parties can freely include the remedy of specific performance in their real estate contract. However, if this provision is not included in the contract, the. Get the help of a Sacramento real estate attorney when breach has occurred in a California real estate or property contract. Schedule a consultation.
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The Remedy of Specific Performance in Real Estate Contracts
An award of monetary damages will not suffice to allow a plaintiff to acquire the same parcel of land anywhere else. If your contract for sale of real estate has fallen through and you want to assert your rights — contact our offices today.
Video: Specific performance in real estate contracts What is specific performance?
Oliver entered into a contract to buy approximately 71 acres of real estate located in Butler County from four members of the Ball family. Moreover, performance based on the personal judgment or abilities of the party on which the demand is made is rarely ordered by the court.
There are specific things that a non-breaching party must prove to be able to convince the court to order a seller to go through with a transaction, including showing that there are no good remedies for the breach other than requiring sale because there simply are not substitutes for the property that the buyer wanted to purchase.
Specific Performance of Real Estate Sales Contracts Butera, Beausang, Cohen & Brennan
We provide a brief discussion of what specific performance is and when it is available in a California real estate litigation matter.
However, the limits of specific performance in other contexts are narrow. The net effect is that the title to the property is effectively clouded by the mere filing and pendency of the suit and the seller can be effectively blackmailed into having to pay off even the most spurious specific performance lawsuit.
This is not an atypical situation. Judicial sales result in notoriously undervalued prices, and even if a money judgment resulted, it would only be an unsecured obligation. In many cases, real estate agreements are particularly amenable to specific performance due to the unique nature of real property.
Buyers typically will not be ordered to go through with the purchase of a sale if the buyer has breached the contract since the buyer could just financially compensate the seller for any losses caused by the sale falling through.
Rather, specific performance is only an appropriate judicial remedy when the recovery of monetary damages is inadequate to compensate the complainant.