Which party is more likely to initiate a lawsuit for specific performance in real estate transactions?

In real estate transactions, a buyer is more likely to initiate a lawsuit for specific performance. This legal action is pursued typically when a buyer has entered into a contract to purchase a property and the seller fails to uphold their end of the agreement, often by refusing to complete the sale. The buyer's motivation stems from the desire to acquire a specific piece of property, which may be difficult or impossible to replace with a similar one due to unique features, location, or market conditions.

Specific performance is a remedy that compels the seller to fulfill the contractual obligations rather than merely providing monetary damages. This is especially relevant in real estate transacting because properties are unique, and a financial settlement might not adequately compensate the buyer's interests. Thus, if a seller defaults on the agreement, the buyer is incentivized to seek this legal remedy to ensure that they can still secure the property they intended to purchase.

The other parties involved, such as lenders and inspectors, typically do not have the same vested interest in the specific property transaction from a contractual standpoint. Therefore, their motivations and roles in the transaction do not align with initiating a lawsuit for specific performance.