This is becuase the law considers real property unique in nature. August 16, 2017 by: Content Team. Even in those situations in which specific performance may be allowed, the court has discretion not to grant it. Complaint for Specific Performance or Damages Based on a Contract to Convey Real Property. California Civil Actions. For example, if you entered into a contract with an art dealer to buy a painting, but the art dealer changed his mind, you could ask the court to award specific performance. All of that is background to say that, because a real estate property is generally not interchangeable with another real estate property the same way that an appliance would be, courts are willing to provide specific performance as a remedy to a buyer when a seller tries to back out of a real estate contract. This often results in real estate specific performance demands by one or both parties.. When the property is for commercial development, such as an office building or apartment building, then the court will still presume that money damages are inadequate (and therefore specific performance should be awarded), and the breaching seller will have the burden of proving to the court that money damages would in fact be adequate. ), Contract Concerning Personal Property: Specific performance of an agreement to transfer personal property depends on pleading and proof of the facts of inadequacy of remedy, e.g., the unique nature of the property or its lack of determinable market value. It encompasses the idea that all parties to a contract are bound by the exact terms stated in that contract and that there are remedies that a wronged party can pursue when someone is in breach of those terms. This form is a Complaint for Specific Performance and in the Alternative for Breach of Contract. A real estate attorney in Los Angeles recently filed a lawsuit for breach of contract and specific performance against my client, the landlord, for the breach of a residential lease for a single family home. Inadequacy of remedies at law is presumed in an action for breach of a real estate purchase and sale agreement due to the perceived uniqueness of land. Accordingly, the complaint must set forth facts to show that the breach cannot be adequately compensated for in damages. agreement that is broken by one of the parties: One party either does not start or fails to finish what was agreed Specific Performance in Real Estate Law . The artist further agrees that he will not consent to nor permit any other person to advertise, announce or make known, directly or indirectly, by paid advertisements, press notices, or otherwise, that he has contracted to do or perform any act or services contrary to the terms of this agreement. "Specific performance" is a legal term arising out of contract law in California and all other states in the country. Real Estate Specific Performance. Updated: Oct 29th, 2020 Learn how the legal remedy of "specific performance" applies to real estate sales. Hence, the statement of a cause of action in a suit for specific performance calls for two kinds of allegations: those that establish the right to recover for breach of contract. 251, 256, 137 P. 1072), Contract to Purchase Real Property: In the case of a contract for the transfer of land, or an interest in land, whether by sale or lease, it is presumed that damages would not adequately compensate. Treble Damages With a specific performance lawsuit, the judge orders the reluctant seller or buyer to complete the contract, that is, to close the sale. Download Form (docx, 42.67 KB) Download Form (pdf, 1.02 MB) Form Number: Pro Se 9. Every so often, real estate transactions can go bad. While this leaves room for debate, as one appellate court has ruled, “Courts generally assume the uniqueness of land and grant specific performance after a breach of a land sale contract in both residential and commercial contexts, with little or no discussion of the adequacy of remedy issue.” What this means for buyers in the commercial context is that there is a high probability that a court will award specific performance in a real estate contract, even for commercial property purchased solely for investment. By initiating a specific performance cause of action, the buyer or seller of real property asks the court to compel the other party to perform its contractual obligation to either buy or sell the property. There are times, however, when the courts will grant orders requiring a party to perform some act or transfer some asset rather than grant monetary damages and those times are usually related to circumstances in which monetary relief would not afford the plaintiff an adequate remedy. Except as otherwise provided in this Article, the specific performance of an obligation may be compelled. In so doing, the court would require the art dealer to actually sell the painting for the agreed-upon contract price rather than have him provide you with money damages for your loss. This remedy is known as specific performance. Justia - California Civil Jury Instructions (CACI) (2020) 356. Category: Civil Pro Se Forms. Real estate contracts often specify the consequences of certain kinds of default and may provide for specific remedies that are available upon default. Thus, a singer X can be compelled to attend a concert and perform, or the seller of real estate can be compelled to transfer title. Specific performance is also not available in sales contracts where money damages are a sufficient remedy for the plaintiff. The basis for an equity court’s jurisdiction in breach of a real estate contract is the fact that land is unique and mere legal damages would not adequately compensate the buyer for the seller’s breach. Specific performance is the name of a remedy for breach of contract. The sometimes murky concept of “specific performance” has roots going back hundreds of years in the common law, and has been limited in many jurisdictions and areas of law, but specific performance is still alive and well in the world of California real estate litigation. By Brian Farkas, Attorney. Every so often, real estate transactions can go bad. This is becuase the law considers real property unique in nature. Before escrow closes, the … This often results in real estate specific performance demands by one or both parties.. Re: Specific Performance? He or she should be able to show that he or she had appropriate financing from a lending institution, if applicable. Thus, a complaint for specific performance should allege: Inadequacy of monetary damages is a fundamental condition of any kind of equitable relief. Specific performance — an action brought in a court of equity in special cases to compel a party to carry out the terms of a contract. This is called specific performance. For example, specific performance is generally not available in service contracts; if the magician you hired for your child’s birthday party backs out, a court will not require him to perform through specific performance but will require him to pay damages for your troubles in securing another magician. Most states have adopted the Uniform Commercial Code (UCC), which addresses specific performance criteria, including California. Accordingly, the complaint must set forth facts to show that the breach cannot be adequately compensated for in damages. Specific Performance in California Real Estate Matters All of that is background to say that, because a real estate property is generally not interchangeable with another real estate property the same way that an appliance would be, courts are willing to provide specific performance as a remedy to a buyer when a seller tries to back out of a real estate contract. When a contract is for the sale of a unique property, for instance, mere money damages may not remedy the purchaser's situation. Specific Performance asks the court to force the opposing party into … In most contractual disputes, courts will not award specific performance based on the principle that, in a free society, we do not want to force people to undertake actions against their will when another remedy is available. Gregory G. Brown is an Irvine, CA based business litigation attorney. On a contract, because you think it ’ s damages for breach of contract may include to. 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