You have signed the contract. The inspections are done. Financing is lined up. Closing day is almost here. Then the other party backs out.
For a buyer, that might mean losing a home they have spent months trying to purchase. For a seller, it could mean losing a deal after taking the property off the market and making plans around the sale.
So what happens when someone refuses to close?
In some Texas real estate disputes, the answer may involve specific performance, a legal remedy that asks a court to require the other party to honor the contract rather than simply paying money for the breach.
What Does Specific Performance Mean?
In simple terms, specific performance means asking the court to make the party who broke the agreement do what they promised to do.
Real estate is different from many other purchases because every property is unique. If you lose the opportunity to buy a particular house, piece of land, or commercial property, another property may not truly replace it. That is one reason specific performance can be important in real estate disputes.
Here Is a Simple Example
Imagine you sign a contract to purchase a home for $500,000. You have your financing ready, completed the inspection, and are prepared to close. A few days before closing, the seller receives a better offer and tells you they are no longer selling.
You may have spent money on inspections, appraisal fees, moving arrangements, and other expenses. More importantly, you may still want that particular property.
Depending on the contract and circumstances, you may be able to ask a Texas court to enforce the agreement and require the seller to complete the sale. But that does not happen automatically.
Can a Seller Force a Buyer to Close?
Yes, potentially. Specific performance is not limited to buyers. A seller may also have contractual remedies when a buyer refuses to complete a transaction. For example, suppose a buyer signs an agreement to purchase a commercial property, the seller fulfills the seller’s obligations, and the buyer later decides they no longer want the property.
The seller may have the right to pursue contract remedies, including specific performance. Current Texas Real Estate Commission contract forms expressly provide specific-performance remedies for both buyer and seller defaults.
The exact remedy, however, depends on the contract and the circumstances surrounding the breach.
What Does a Buyer Have to Show?
A buyer seeking specific performance generally needs to show that there is an enforceable contract and that the buyer was ready, willing, and able to perform their own obligations.
In practical terms, that means you should be able to show that you were actually prepared to close. For example, if you are the buyer, evidence of financing, communications with the lender, closing documents, and other records may help demonstrate that you were prepared to complete the purchase.
One Texas case also recognizes that a buyer may not need to tender payment when the seller has clearly and unequivocally refused to perform. But that is an exception, not something a buyer should simply assume applies.
What If the Buyer or Seller Simply Changes Their Mind?
Changing your mind does not necessarily cancel a signed real estate contract.
The Texas Real Estate Commission notes that once a seller accepts a buyer’s offer, there may be a binding contract, and there is no automatic three-day or 72-hour cooling-off period simply because the buyer changes their mind. The contract itself determines what termination rights may exist.
That is why the actual contract needs to be reviewed before deciding that someone is free to walk away. Contingencies, deadlines, termination provisions, notices, earnest money, and other contract terms can all affect the parties’ rights.
What Should You Do If the Other Party Refuses to Close?
Do not immediately assume that the only choices are accepting the loss or filing a lawsuit. Start by preserving the paperwork.
Keep the signed contract, amendments, emails, text messages, inspection reports, financing documents, and communications with the other party, real estate agents, lender, and title company. Those records can help establish what was agreed upon, what happened, and whether either party was actually ready to perform.
More importantly, have the contract reviewed before taking a step that could affect your legal rights.
Protect Your Real Estate Interests With Abii & Associates
A failed closing can involve a substantial amount of money and, for a buyer, a property that may be impossible to replace. Abii & Associates can review your real estate contract, examine the circumstances surrounding the failed closing, and help determine whether specific performance or another legal remedy may be available.
Whether you are a buyer who has been told the seller will no longer close or a seller dealing with a buyer who refuses to complete the purchase, you deserve to understand your rights before making your next move.
Contact Abii & Associates today to discuss your Texas real estate contract and find out what legal options may be available to protect your interests.
Final Thoughts on Specific Performance in Texas Real Estate: Can You Force a Buyer or Seller to Close?
A signed real estate contract is more than a handshake. It creates obligations for both sides, and walking away can have serious consequences.
But not every broken deal can or should be forced through court. The language of the contract, the conduct of both parties, and the circumstances surrounding the breach all matter.
If someone has backed out of a real estate transaction you expected to complete, do not make your next decision based on frustration or assumptions. Have the contract reviewed, understand your options, and then decide how you want to move forward.