legal
Specific Performance
A court-ordered remedy compelling a party to complete the contract, available in real estate because each parcel is considered unique.
In depth
Specific performance forces the breaching party to perform their contract obligation rather than just paying damages. In real estate, specific performance is commonly available because every parcel is unique, making damages inadequate. Misconception: specific performance is not always granted; the court considers cleanliness of hands, mutuality, and feasibility. Practically, in FSBO and seller-finance contexts, specific performance is the buyer's remedy if the seller refuses to convey. Sellers can also sue for specific performance against a defaulting buyer to compel them to close. Lis pendens filings preserve the property's status during specific performance lawsuits. Drafting clear contracts with definite terms increases the likelihood of obtaining specific performance.
Educational content only. Definitions reflect typical usage in US owner-finance and FSBO transactions; statutes and case law vary by state. Consult a licensed real-estate attorney for fact-specific guidance.