Specific Performance in Real Estate Contracts: What It Means for You

9 February 2026

Real estate deals can get messy. Imagine you’ve found your dream home, signed a contract, and suddenly, the seller backs out. Or maybe you’re the seller, and the buyer refuses to close the deal. What happens then?

This is where specific performance comes into play—a legal remedy that forces a party to fulfill their contractual obligations. While most real estate disputes end with financial settlements, sometimes money isn’t enough. Some deals are so unique that forcing completion is the only fair solution.

But is specific performance always the right move? Let’s break it down.

What Is Specific Performance in Real Estate Contracts?

A Legal Remedy, Not Just a Suggestion

Specific performance is a court-ordered demand to fulfill a contract. In real estate, this usually means compelling a buyer or seller to go through with the sale.

Unlike monetary damages, which compensate for losses, specific performance ensures the contract’s original terms are honored. Courts typically grant this remedy when financial compensation wouldn’t be adequate—especially when the property is unique.

For example, imagine you’re buying a historic home with distinct architecture or a beachfront property with a one-of-a-kind view. If the seller backs out, merely compensating you with money doesn’t replace the lost opportunity. In such cases, courts may enforce specific performance.

When Is Specific Performance Enforced?

Courts don’t automatically grant specific performance in every contract dispute. Several factors play a role in determining whether it's the right remedy.

1. Unique Nature of Real Estate

Every property is unique—especially when dealing with historic homes, rare locations, or commercial spaces with specific zoning advantages. Unlike stocks or cars, real estate isn’t something you can simply replace. That’s why courts often favor specific performance in real estate disputes.

2. A Clear and Valid Contract

For specific performance to apply, the contract must be legally binding and enforceable. If the agreement is vague, missing critical terms (like price or financing details), or based on fraud, the court may refuse to enforce it.

3. The Buyer’s Readiness and Willingness

To seek specific performance, the buyer must show they were ready, willing, and able to complete the purchase. If the buyer didn’t secure financing or failed to meet contractual obligations, the court may deny the request.

4. Seller’s Breach Without Justification

If the seller has a valid reason for backing out—such as discovering the buyer misrepresented financial capacity—the court might side with them. But if the seller is simply trying to take a higher offer, specific performance could be enforced.

Why Would a Buyer Request Specific Performance?

As a buyer, you’re making a significant investment. If a seller backs out, you might suffer more than just the inconvenience of starting over. Here’s why buyers fight for specific performance:

- Scarcity of the Property – If you've spent years searching for a property in a competitive market, losing it due to a seller’s cold feet isn’t fair.
- Increased Market Prices – If property values have risen after signing the contract, finding a similar home might cost you much more.
- Emotional Attachment – Some properties have sentimental value. Maybe it's your childhood home or falls within a perfect school district.

For buyers, specific performance can ensure they get exactly what they bargained for instead of just a financial settlement.

Why Would a Seller Request Specific Performance?

Buyers backing out of real estate contracts is more common than many think. Sellers may seek specific performance for reasons like:

- A Falling Market – If property values drop after signing the contract, a seller might insist the buyer complete the transaction at the original price.
- Difficult Selling Conditions – If a seller already moved out or made other arrangements assuming the sale would close, a buyer backing out can cause major disruptions.
- Unique Buyer Match – Certain properties require specific buyers, such as commercial spaces with particular business permits.

However, courts tend to grant specific performance to buyers more often than to sellers. Why? Because real estate is unique for buyers, but sellers can usually find another buyer, making monetary damages a more practical solution for them.

When Courts Deny Specific Performance

Specific performance isn’t always a given. A court may refuse to enforce it under conditions like:

- The contract is unfair or unclear – If terms are overly complex, one-sided, or ambiguous, enforcement becomes tricky.
- Hardship or unfairness – If compelling a party to perform the contract would cause extreme hardship, courts might deny the request.
- Lack of proper financing – If a buyer can't secure funds, forcing the deal isn’t practical.
- Changed circumstances – For example, if zoning laws change or the property is damaged before closing, enforcing the original contract may no longer be reasonable.

How to Protect Yourself in Real Estate Contracts

The best way to avoid specific performance disputes is to draft clear, legally sound contracts. Whether you're buying or selling, consider these precautions:

1. Work with an Experienced Real Estate Attorney

A well-drafted contract prevents ambiguity and ensures strong legal standing. Real estate attorneys catch loopholes and ensure all contract details are enforceable.

2. Include Contingencies

Contingencies (such as financing, inspections, and appraisal requirements) offer an exit strategy without legal consequences. This prevents either party from being forced into a deal under unfair circumstances.

3. Get Pre-Approved for Financing

If you’re a buyer, ensure your financing is secured before signing a contract. This prevents sellers from arguing you weren’t financially prepared.

4. Use a Fair Earnest Money Deposit

A reasonable earnest money deposit shows commitment. It also provides compensation if one party unjustifiably backs out.

5. Stay in Communication

Many contract disputes arise due to miscommunication. Keeping open, documented discussions with the other party can prevent unnecessary legal battles.

Final Thoughts

Specific performance can be a powerful tool in real estate contracts. If you're a buyer, it ensures you get the property you signed up for. If you're a seller, it discourages buyers from abandoning deals without cause. However, courts won’t enforce it in every case—especially if the contract is unfair or ambiguous.

Before entering a real estate contract, make sure everything is legally sound. And if you ever find yourself in a dispute, don’t hesitate to seek legal advice. After all, real estate is one of the biggest investments you’ll ever make—you deserve to protect your rights.