Specific Performance in Sacramento Real Estate Transactions
When the seller fails to perform their obligations under a real estate sales contract or option agreement the buyer must decide whether they want to force the seller to comply with their contractual obligations through the remedy of specific performance. To pursue specific performance and force the seller to convey the property, the buyer will have to remain ready to fulfill their obligations under the real estate sales or option contract. Furthermore, the buyer’s real estate attorney will have to prove the statutory requirements spelled out in Civil Code Section 3384-3395. Those requirements have been articulated in Henderson v. Fisher as…
The plaintiff must show that his remedy at law is inadequate; the contract must be just and reasonable and must be supported by adequate consideration; there must be a mutuality of remedies, that is, the contract must be subject to specific performance by both of the contracting parties; the terms of the contract must be sufficiently definite for the court to know what to enforce; and the performance which the court is asked to compel must be substantially identical to that promised in the contract.
Adequate Consideration, Just & Reasonable
What is adequate consideration? Adequate consideration is not exact fair market value, but rather what is fair, just, and reasonable at the time the contract was entered into. Adequate consideration is determined by the surrounding circumstances, and where the sellers consent has been obtained by misrepresentation, the resulting consideration may be found to be inadequate under the circumstances.
Inadequate Legal Remedy
This element is by far the easiest for a buyer to satisfy. In cases involving the purchase of a single family dwelling the buyer intends to occupy, a conclusive presumption exists that the breach cannot be adequately compensated by monetary damages. In so many words, in the typical real estate sales agreement involving a single family dwelling which the buyer intends to occupy, the seller’s breach of the real estate sales agreement will be enough to satisfy the “inadequate legal remedy” requirement for specific performance.
If a seller has failed to convey the property under a signed purchase agreement contact our office at (916) 596-1018 to be referred to a Sacramento real estate attorney. Real estate agents in Sacramento cannot always persuade sellers to comply with their legal obligations. If the seller in your transaction has breached the agreement you should retain a local real estate attorney.
By Adam Garcia