.: Specific Performance Demands In Real Estate Transactions
By:Raynor
Category:Home / Finance / Real Estate
Every so often, real estate transactions can go bad. This often results in one party demanding the other specifically perform pursuant to the real estate contract.
Specific Performance Demands In Real Estate Transactions
Once a seller and buyer agree on a price for a property, a real estate contract is signed. The contract contains provisions each must comply with, provisions that are legally binding. If problems arise during escrow, particularly if things turn nasty, one party may look to legal remedies to force the other party to do something.
Specific performance is a legal demand that a party perform some act. Although the theory can be applied to many situations, it is often seen in real estate transactions. This is because courts have determined that property is unique, and specific performance is often more valuable than monetary damages.
In the case of real estate, specific performance demands often involve the conveyance of title. Having met the conditions of the contract, the buyer demands the seller convey title to them. Why would sellers not do this automatically? Situations can include seller remorse, basic flakiness or the realization the seller accepted far too low an offer compared to what the market would produce.
Specific performance demands are a two sided situation. Courts often are reluctant to grant them because human nature is such that the defendant will often poison a situation by damaging the property or screwing up title. This does not mean the seller is off the hook.
While courts are hesitant to grant specific performance demands, they are not hesitant to enforce real estate contracts. Depending upon the laws in your state, the court may grant something called a lis pendens. The lis pendens represents the equivalent of the monetary damages suffered by the buyer. More importantly, it is recorded against the deed of the seller’s property. This effectively forces the seller to pay the buyer if the seller ever hopes to sell the property. When a title insurance company reviews title for any subsequent sale, it will notify the new purchaser of the lis pendens and refuse to issue title insurance. With no title insurance, the seller is going to have an extremely hard time moving the property. In fact, it will be nearly impossible as it is difficult to imagine any buyer that would want to get involved in the dispute.
While there can be sniping in real estate transactions, most go fairly smoothly. When they fall apart, specific performance and lis pendens can become dominant issues.
Article keywords: real estate, lis pendens, specific performance, buyer, seller, transactions, contract
Article Source: http://www.articles32.com
Raynor James is with the FSBO site - FSBOAmerica.org - homes for sale by owner.
.: New Real Estate Articles
1). How to Find Foreclosure Homes
A foreclosure is the result of a homeowners default on mortgage. Most of the time, the homeowners are unable to maintain the premises and take on repairs.
2). Guide to Buying Property in Spain
The beauty and wonderful climate of Spain make it an ideal place for people around the world to purchase property. Exquisite Spanish villas are abundant throughout the country. There are numerous locations to choose from, each offering a unique environment for either a permanent residence or a relaxing vacation home.
3). Media Confirms Port Charlotte a Great Investment Opportunity
Media and journalism have the power to influence the success or failure of any industry. The reports carried by newspapers or other means of information can actually cause the rise or fall of prices and value in a specific industry.
4). Let a VA Handle Your Transactions While You Take a Vacation
You have been working hard, its time to reward yourself with some time away from the office. Aahh, but you have real estate transactions that will be coming in soon, so how can you possibly take some much needed and deserved time away from the office?
5). Fixer-Uppers: Project Management 101
The goal in real estate investing should be to make the most profit in the least amount of time using as little of your money as possible. This article explains how becoming a Project Manager will help you with this end goal.
6). Host an Event to Sell Your Property!
Sometimes stimulating interest in your investment property means that you have to shake things up a bit when it comes to marketing. One rarely used but highly successful real estate investing marketing ploy involves hosting unique events at the investment property to bring traffic and potential buyers to the property.
7). Success with Florida Investment Lots
The trends and patterns in the real estate industry are often defined by the lifestyle patterns and the general standard of living of people.
.: Top Real Estate Articles
1). Real Estate Math - Do You Know These Simple Formulas?
How much real estate math do you need to know if you are investing in real estate? There are computers and calculators for calculating interest rates or amortizing loans. What you need to know is a few simple formulas for determining if a property is a good investment or not.
The Real Estate Math You Don't Need
The gross rent multiplier is one formula you don't need.
2). Flip That House Style Real Estate Investing
I love those TV rehabbing shows like Flip That House. On the show people buy a house needing to be seriously updated and repaired. Usually the kitchen is heavily upgraded with new cabinets, cutting edge appliances, new countertops and more. The bathrooms are completely redone with new tile, tubs, showers, sinks and more. The living rooms and other areas usually have walls taken out to open up the floor plan and usually carpet is replaced with some type of hardwood flooring.
3). VASTU AND FENG-SHUI QUESTION AND ANSWERS - RealAcres
QUESTION If my flat is built in 1987 and my main door faces North, is my flatprosperous ?
ANSWER From the year 1984 to the year 2003 , any house or flat that sits at the south and faces the north and has the main door at north has a very good fengshui house till the year 2003. However the external topography will also playa part to the family's health and wealth.
4). How to Sell Your Home in a Slow Market
The real estate market has slowed down in many areas that were booming over the last few years. Sellers in those areas got spoiled. It was only necessary to put a sign out front, and buyers came. Homes sold in a matter of days. This is no longer happening. If you want to sell your home in a slow area, what do you do?
Go Back to Marketing Basics
Whether you are selling your home yourself or working with a realtor, the answer is the same.
5). Understanding Mello-Roos When Considering a Purchase
Part of the process of evaluating the decision to make an offer on a home in a newer development is understanding the costs. Mello-Roos are one issue that is popping up more and more.
Understanding Mello-Roos When Considering a Purchase
The process of real estate development has become a much more complex one in many parts of the country. The idea of buying some land and building a few homes is a bit naïve these days.
6). How To Find A Real Estate Agent
It's easy to find a real estate agent. Just put a for sale sign in the yard and wait for the phone to ring. The question is, how do you find a GOOD real estate agent? You can start with newspaper.
Pick up the Saturday or Sunday paper - whichever day they have all the homes for sale in your area. You can also collect a few real estate guides to look through.
7). Taking Title When You Buy
Taking title to a home can seem like a boilerplate event during escrow, but it is very important. The prime question is how you take title.
Taking Title When You Buy
If you are a first time buyer, you are probably wondering what taking title refers to. It is not the act of accepting a piece of paper from the seller. Taking title refers to who is listed on the title and HOW they are listed.