Advice on Specific Performance for Breach of Real Estate Contract

[Ryan S.]

In October 2024, I began searching for a property in Colorado but couldn't find anything suitable on the MLS. Exploring alternative options, I inquired about a property that was listed for rent. I reached out to the agent representing the property to see if the owner might consider selling. The owner was open to the idea and outlined their terms and conditions.

After several weeks of negotiations, we reached an agreement, and the seller signed a binding contract. However, about eight days later, the seller informed me that they had "changed their mind" and no longer wanted to sell.

In the weeks that followed, the seller failed to provide the required documents, including HOA disclosures, the seller's disclosure, and other essential paperwork, all of which were due within specific timelines per the contract. This failure constitutes a breach of the agreement.

This property is truly unique and perfectly suited to my needs. I’ve sent the seller a demand letter, but instead of honoring the contract, they offered me money to walk away. I don’t want compensation; I want the property. Has anyone pursued legal action for specific performance in a similar situation? Any advice or insights into the process would be greatly appreciated.

[Jay Hinrichs]

Quote from @Ryan S.:

Quote from @Steve K.:

Did you use the state-approved contract/ a contract that addresses the remedy for breach of contract and specific performance? 

Thanks for your insight. That makes sense. This is a very frustrating situation. I really want this property for so many reasons and don't just want to just walk away.

Yes. I used a Colorado state-approved contract. The contract states the below: 

20.2.1. Specific Performance, Damages or Both. Buyer may elect to treat this Contract as canceled, in which case all Earnest Money received hereunder will be returned to Buyer and Buyer may recover such damages as may be proper. Alternatively, in addition to the per diem in § 17 (Possession) for failure of Seller to timely deliver possession of the Property after Closing occurs, Buyer may elect to treat this Contract as being in full force and effect and Buyer has the right to specific performance or damages, or both.

22. MEDIATION. If a dispute arises relating to this Contract (whether prior to or after Closing) and is not resolved, the parties must first proceed, in good faith, to mediation. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. Before any mediated settlement is binding, the parties to the dispute must agree to the settlement, in writing. The parties will jointly appoint an acceptable mediator and will share equally in the cost of such mediation. The obligation to mediate, unless otherwise agreed, will terminate if the entire dispute is not resolved within thirty days of the date written notice requesting mediation is delivered by one party to the other at that party’s last known address (physical or electronic as provided in § 26). Nothing in this Section prohibits either party from filing a lawsuit and recording a lis pendens affecting the Property, before or after the date of written notice requesting mediation. This Section will not alter any date in this Contract, unless otherwise agreed.

so you wont sue at this point you will go to mediation. 

U asked if anyone had done a specific performance.. And yes I have done one in 50 years in the industry.
Facts:

1. purchase contract and gave 50k up front to bring tax's current.
2. it was all cash no contingencies.
3. seller just goes dark no response to anything.
4. We put 100% of the purchase price per the contract into escrow 2 days before closing.
5. Close date comes and goes and still not a word from the seller.
6. I am now out 50k and have a few hundred grand sitting in escrow.
7. not willing to just walk from 50k if there was not this 50k I would have just moved on.
8. We sue
9. We win as seller is a no show in court
10. Judge still gives seller another 90 days to file appeal or whatever.
11. that time runs now title company wont insure until we give another 60 days.
12. judge signs order and the 60 days the title company starts to run.
13. We finally close with title insurance.
14. seller is holed up  its a massive hoarder situation as bad as I have ever seen.
15. another 6 months to get eviction.

so about 30 months later we finally take possession and bull doze house and built three new homes.  250k in out for 30 months  another 30k in legal fees..

Now this is with an uncontested legal action.. I suspect if someone contests could be longer.

I also think once you go to mediation this will get worked out pretty quick mediators if you get a good one do a nice job putting these deals together..