What Is Specific Performance in Real Estate?

📘 What Specific Performance Means

Real estate is considered unique property, meaning money damages often aren’t enough when a deal falls apart. Because of this, courts allow a remedy called specific performance, which legally compels a party to perform the contract as written.

Specific performance can be used when:

• A seller tries to back out of a signed contract without cause
• A buyer refuses to close despite having no valid contingency
• A party fails to perform duties required by the contract
• A dispute threatens the transfer of title or possession

It is most commonly used by buyers — but sellers can also request it in certain cases.

Also see: Legal vs. Equitable Title

📅 When Specific Performance Applies

1. Seller Refuses to Complete the Sale

If a seller tries to cancel after signing a binding contract — especially for a higher offer — the buyer can sue to force the closing.

2. Buyer Has Satisfied All Contingencies

Once the buyer has met financing, inspection, appraisal, and other conditions, they can enforce their equitable rights and demand the seller close.

3. There Is No Legal Justification for Backing Out

• No active contingencies
• No breach by the other party
• No mutual cancellation agreement
• The withdrawing party simply changed their mind

4. Monetary Damages Aren’t Enough

Because real estate is unique, courts often rule that money alone cannot replace the specific property — making specific performance appropriate.

Explore related steps: Title Guide • Under Contract

⚖️ What Specific Performance Can Require

• Force the seller to convey the property as contracted
• Require the buyer to close and deliver funds
• Compel the clearing of title issues preventing transfer
• Enforce obligations written in the contract
• Prevent a party from selling to someone else

Specific performance is typically paired with lis pendens — a notice filed in county records to inform the public that the property is under legal dispute.

Learn more: Equitable Interest

🏡 FSBO Sellers: Why Specific Performance Matters to You

FSBO sellers are often surprised to learn that accepting a contract means they are legally bound — and can be forced to close even if a higher offer appears later.

• You cannot cancel without contractual justification
• Buyers may sue to enforce the deal
• Title companies stop the closing if litigation arises
• Wrongful cancellation can result in financial damages

Understanding specific performance protects you from costly missteps during negotiation and under-contract timelines.

Learn FSBO steps: DIY Home Selling Playbook

🔑 Bottom Line

Specific performance is a legal remedy that can force a buyer or seller to complete a real estate contract when one party refuses to close without valid cause. It ensures that real estate transactions remain enforceable and protects buyers and sellers from wrongful cancellation.

Explore related guides:
Legal vs. Equitable Title • Equitable Interest • Under Contract