What is Specific Performance and Why Does it Matter in Real Estate Cases?
An Orange County real estate litigation lawyer can provide assistance to buyers and to sellers of residential real estate or of commercial real estate. If problems occur during real estate transactions, the consequences can often be dire as the parties to the transaction may suffer significant financial loss. Brown & Charbonneau, LLP helps those involved in real estate transactions to make smart choices so they can reduce the chances of litigation. We can also provide help in situations where problems have arisen, and we can represent both buyers and sellers if a case goes to court.
Hiring an experienced Orange County real estate litigation lawyer is vital so your attorney can help you to make the most compelling possible case showing that you were wronged and the other party owes you a legal remedy. Having the right lawyer is also important so your lawyer can explain the different kinds of remedies that could result from a real estate sales contract being breached. For example, an experienced attorney at Brown & Charbonneau, LLP can explain to you what specific performance means and why it matters when a problem arises with your real estate deal.
What is Specific Performance and Why Does it Matter in Real Estate Disputes?
In most breach of contract claims, the non-breaching party will seek financial damages as a remedy from the breaching party. For example, if a home owner fails to pay a house painter for completing a painting project in accordance with the terms of a contract in which payment was promised, then the painter has been financially damaged. The painter could sue the home owner, prove the homeowner breached the contract by failing to live up to his obligation, and could obtain money damages based on how much actual financial loss he can prove due to nonpayment.
Sometimes, however, financial damages aren’t going to be enough to compensate the non-breaching party or to make the non-breaching party “whole” by allowing him to recoup losses caused by the breach. There are certain circumstances, for example, where no amount of money could help to compensate a non-breaching party for the particular loss that was endured. Real estate transactions are often one of these circumstances.
If a non-breaching party had contracted to buy a building based on the building’s specific characteristics and location, then there is likely no actual substitute for the building if the seller does not follow through after signing a contract promising to sell. If the seller changes his mind about the sale and breaches the contract, then the victim of the seller’s breach is in a bad position. Even providing money to the victim wouldn’t solve the problem if the victim couldn’t find a comparable building.
In cases like this one, specific performance may be a more appropriate remedy for certain buyers than pursing a claim to recover financial damages. Specific performance requires the breaching party to the contract to actually perform according to the contract terms. For example, if a seller breaches a contract to sell a warehouse building that the buyer definitely wants, the buyer could ask the court to compel the seller to sell the property even over the sellers’ objections.
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.
Typically, it is only a buyer who will be able to pursue a claim for specific performance. 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.
Getting Help from An Orange County Real Estate Litigation Lawyer
An Orange County real estate litigation lawyer at Brown & Charbonneau, LLP can offer you assistance in understanding remedies available to you if the other party involved in your real estate transaction has breached your contract. We can also provide representation to those who have been accused of breaching a contract and causing damages to occur.
We represent individuals and businesses and we handle residential and commercial real estate transactions, so you can rest assured we have the experience you need to make the best arguments when a problem arises so you can maximize the chances of the dispute being resolved in your favor. To find out more about the help that we can offer, give us a call at(866237-8129 or contact us online at any time.