What is an example of a specific performance in real estate?

Specific performance in the context of real estate refers to a legal remedy where a party is compelled to fulfill the terms of a contract, typically involving the sale of property, rather than simply compensating the other party with damages. In real estate transactions, this often means forcing a seller to complete the sale of a property as per the agreement, particularly when the buyer has fulfilled their obligations under the contract.

This legal remedy is particularly relevant because real estate is considered unique; if a seller refuses to sell a specific property, monetary damages may not adequately compensate the buyer, who may wish to obtain that particular property rather than a different one. Therefore, the court can order specific performance, mandating that the seller complete the sale as agreed.

In contrast, compensation for damages refers to monetary reimbursement rather than fulfilling a contract's terms. Rescinding a contract means declaring the contract void, thus terminating obligations from both parties, which is not related to the fulfillment of a contract. Transferring title without conditions does not reflect the legal remedy of specific performance, as it does not address the necessity of compelling completion of a contract. Hence, forcing a seller to close on a sale is the quintessential example of specific performance in real estate transactions.