Posted: September 3, 2023
Category: Real Estate

In Texas real estate disputes, buyers and sellers often seek to enforce the terms of a signed contract. But what happens when one party refuses to close the deal? In many cases, the injured party can ask the court for a legal remedy known as specific performance.

Specific performance is a powerful tool that forces the breaching party to follow through with the agreement. Here’s what it means, when it applies, and how Guerra Days Law Group can help protect your real estate rights.

⚖️ What Is Specific Performance?

Specific performance is a court order requiring a party to perform their obligations under a contract—most often to complete the sale of real estate. It is available when monetary damages are not sufficient to make the non-breaching party whole.

Texas courts recognize that real estate is unique. If a seller refuses to transfer title or a buyer refuses to pay and close, the other party can ask a court to enforce the deal through specific performance.

📜 When Is Specific Performance Available?

To be eligible for specific performance in Texas, the non-breaching party must show:

  • There was a valid, enforceable contract
  • The property is unique and cannot be replaced with money
  • The plaintiff has met or is ready to meet their own obligations
  • The breaching party is refusing to close or perform

The party asking for specific performance must also show they did not cause the breach and acted in good faith throughout the transaction.

🔍 Common Situations Where Specific Performance Is Used

  • The seller signs a sales contract but later refuses to convey the property
  • The buyer refuses to close despite a valid agreement and financing approval
  • A seller attempts to back out to accept a higher offer from another buyer
  • A dispute arises over contract terms, but the core agreement remains valid

💡 Does It Apply to Buyers and Sellers?

Yes. Both buyers and sellers can request specific performance in Texas if the other party breaches a real estate contract.

  • Buyers can ask the court to force the seller to transfer title as promised.
  • Sellers can ask the court to require the buyer to complete the purchase, if the buyer unjustifiably refuses to close.

🧾 Requirements for Enforceability

For the court to enforce a contract via specific performance, the agreement must meet key requirements under Texas law:

  • It must be in writing and signed (Statute of Frauds)
  • It must clearly identify the property and parties
  • It must set forth essential terms such as price and closing date

Ambiguous or incomplete contracts are difficult to enforce in court. That’s why it’s essential to have a well-drafted agreement.

🧭 How Long Do You Have to File?

The statute of limitations for filing a specific performance claim in Texas is generally four years from the date of breach. Waiting too long could result in a waiver of your right to enforce the contract.

🔄 Alternatives to Specific Performance

In some cases, courts may deny specific performance and instead award:

  • Monetary damages to cover the plaintiff’s losses
  • Rescission to undo the contract entirely
  • Liquidated damages such as earnest money forfeiture

However, specific performance remains the preferred remedy for real estate when the subject property is unique or irreplaceable.

🛡 How Guerra Days Law Group Can Help

We represent buyers and sellers in contract disputes, including specific performance claims. Our real estate litigation team can help you:

  • Evaluate your legal rights and contract terms
  • Negotiate performance or settlement options
  • File a specific performance lawsuit when necessary
  • Defend against wrongful enforcement attempts

Whether you’re protecting a once-in-a-lifetime deal or your financial investment, we’ll guide you with skill and urgency.

✅ Final Thoughts

Specific performance is a powerful remedy in Texas real estate law—but only available when the facts and contract support it. Don’t let a seller or buyer walk away from a valid deal without consequences.

📞 Need Help Enforcing a Real Estate Contract?

Contact Guerra Days Law Group today. We’ll help you pursue or defend against a specific performance claim with experience and focus.