Most residential real estate contracts in Texas are conducted using the standard Texas Real Estate Commission (“TREC”) contract. Paciwest, Inc. v. Warner Alan Props., LLC , 266 S.W.3d 559, 571 (Tex. Specific performance is referred to under the law as an equitable remedy. Notably, the remedy is granted to both Buyers and Sellers, so either party may bring a suit for specific performance if the other fails to close. Requirements for Specific Performance: Courts will enforce specific performance only if the underlying contract was “fair and equitable.” It is up to the plaintiff to demonstrate that the contract was an … When the Buyer fails or refuses to close for other reasons — or when they have financial the ability to do so — the remedy of specific performance can be exercised by the Seller. I have represented numerous Sellers whose Buyers didn’t close because they simply could not. E-mail: info@silblawfirm.com, Austin Office Consumers continue to find value in having a real estate professional help them through the home buying and selling process. Houston, TX 77018 This type of relief is not at all uncommon in lawsuits involving real property: the transaction fails to close, the plaintiff sues to have … Unless expressly authorized by a contract (note on this below), whether to award specific performance is within the discretion of the Judge. Under Texas law, contractual breaches can subject the breaching party to damages and attorneys’ fees. The seller may be compelled to perform to the extent possible, with an abatement (reduction) of the purchase price to compensate for the defect or … This option is rarely used … In a breach of contract case, the court can consider ordering specific performance as long as the innocent party asks for that remedy. If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money, thereby releasing both parties from this contract. When the Seller fails or refuses to close, a Buyer’s life can be up-ended — especially when that Buyer’s plans are to immediately occupy the subject property. 8000 IH-10 West, Suite 600 Fortunately for the buyer, if a seller has made clear that he or she has no intention of completing the transaction, the buyer is usually excused from showing up to tender payment. Use our free Real Estate practice exams (updated for 2020) to pass the Real Estate License Exam - an assessment taken by candidates who wish to become a Real Estate Agent or Broker.Real Estate Agents work to advise home buyers and sellers on market conditions, real estate prices, mortgages, and how to best present their homes in order to sell at the best price. Real estate is considered to be unique. Real estate agreements of sale are different in this regard however. #220 Below, we set out what type of breach if required and in what circumstances the court will not order Since there is no other piece of property or house exactly like Beth's, Rina may be entitled to specific performance on the contract. This and the other pleading forms available from the www.uscourts.gov website illustrate some types of information that are … When a Buyer or a Seller wants the other party to follow through on a signed contract but they don’t want to, they take it to the courts and they sue for Specific Performance. Complaint for Specific Performance or Damages Based on a Contract to Convey Real Property. Our recent Blog posts on real estate law have discussed the claims a seller of property can bring against a buyer who breaches a real estate sales contract and also the claims a buyer may bring against the seller when a breach has occurred. Once a seller and buyer agree on a price for a property, a real estate contract is signed. The term specific performance refers to literal performance of ones obligations under a contract. (“Generally speaking, it is a prerequisite to the equitable remedy of specific performance that the buyer of land shall have made an actual tender of the purchase price … [unless] actual tender would have been a useless act….”. For example, as the seller, you might have agreed only to keep the earnest money if the buyer breaches the purchase and sale agreement. Effective on December 1, 2016. If the non-breaching party can prove there was a contract and that he was willing and able to perform on the contract, he may be able to bring a successful specific performance action. An idle threat will not be sufficient. How Might a Real Estate Closing Fall Apart? About These Forms In General. But, that isn’t the limit of the buyer’s liability. 2060 North Loop West Ste. 2008). For example, as the seller, you might have agreed only to keep the earnest money if the buyer breaches the purchase and sale agreement. In the above excerpt, the Texas Supreme Court has indicated it is probably not necessary for a buyer to show up with money to close when a seller has expressly informed the buyer that there is no intention to close. State: Multi-State Control #: US-CMP-10065 Instant Download $59.00. Under this contract, there are several instances in which the termination of the transaction results in the Earnest Money being returned to the buyer. (mem.op.) Of course, you must learn the material in the first place. Specific performance is not the only remedy. SPECIFIC PERFORMANCE IS CONTEMPLATED BY THE TREC-PROMULGATED CONTRACT FORMS. denied). Specific performance is a remedy that is sometimes pleaded in the alternative to damages: the plaintiff says that the defendant breached a contract, and specific performance would require the defendant to perform the contract. 2008). 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