Halle agreed to sell a piece of land called Blackacre to Justin for $200 000.The sale was scheduled to close on June 1.Under the terms of the contract, Justin paid $10 000 to Halle on May 1.On May 15, however, Halle told Justin that she had changed her mind and that she intended to keep Blackacre for herself.She did so even though the market value of Blackacre had dropped to $150 000.Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

DSpecific performance is an equitable remedy typically available in real estate transactions because real estate is considered unique. However, if the buyer's interest in the property is purely for investment purposes and lacks a special reason for wanting that specific property, courts may be less inclined to grant specific performance, favoring monetary damages instead. This is because the uniqueness of the property, which is a key factor in granting specific performance, is less compelling when the purchase is solely for investment. Regarding the vendor's lien, it is a lien against the property for the price unpaid by the buyer. If Halle refuses to repay the $10,000, Justin cannot directly force the sale of Blackacre using a vendor's lien because he is the buyer, not the seller. Vendor's liens secure the seller for the unpaid part of the purchase price, not the buyer for the return of a deposit. However, Justin might seek other legal remedies to recover his deposit or enforce the contract, but the statement as given misrepresents the nature and direction of a vendor's lien.

Halle Agreed to Sell a Piece of Land Called Blackacre