Agreement of Sale Specific Performance: What You Need to Know
If you`re in the process of buying or selling property, you may have heard the term “agreement of sale specific performance.” But what does this term really mean? In short, it refers to a legal remedy that can be used in the event that one party fails to fulfill their obligations under a sales contract.
Specific performance is a type of court order that requires a party to fulfill the terms of a contract. In the context of a real estate sales contract, this means that if a seller fails to transfer ownership of the property as agreed, the court can order them to do so. Similarly, if a buyer fails to pay the agreed-upon purchase price, the court can order them to do so.
Why is Specific Performance Important?
The main benefit of specific performance is that it provides a relatively quick and effective remedy for breaches of contract. In situations where a party has failed to fulfill their obligations under a sales contract, the other party can seek specific performance as a way to enforce their rights.
For buyers, the ability to seek specific performance can be especially important. If a seller fails to transfer ownership of the property as agreed, the buyer may be left in a difficult position. They may have invested time and money in preparing for the move, only to find themselves unable to actually purchase the property. Specific performance can help ensure that the buyer is not left stranded in this situation.
For sellers, on the other hand, specific performance can help ensure that they receive the agreed-upon purchase price for the property. If a buyer fails to pay, the seller may be left in a financial bind. Specific performance can help ensure that the seller receives the funds they are owed.
How to Include Specific Performance in Your Sales Contract
If you want to include specific performance as a remedy in your sales contract, there are a few things you`ll need to do. First, make sure that the contract explicitly states that specific performance is an available remedy in the event of a breach. This can be done through a clause that specifically references the remedy.
Second, consider working with a real estate attorney to draft the contract. An attorney can help ensure that the language used in the contract is legally sound and that your rights are protected.
Finally, be prepared to go to court if necessary. While specific performance is an effective remedy, it does require a court order to be enforced. This means that if the other party fails to fulfill their obligations, you will need to go through the legal system to enforce your rights.
Agreement of sale specific performance is an important legal remedy that can help ensure that real estate sales contracts are fulfilled. By including specific performance in your sales contract, you can help protect yourself in the event that the other party fails to fulfill their obligations. If you have questions about specific performance or need help drafting a sales contract, consider working with a real estate attorney.