14.25 Specific Performance

Real estate licensees should note that personal service contracts cannot be enforced by specific performance by either party. Personal service contracts include listing agreements, property management agreements, and other employment agreements such as buyer’s agent contracts. This means that if a seller wants to cancel a listing contract, the listing licensee cannot sue for specific performance. However, the licensee may be able to recover any loss due to the wrongful cancellation by using the actual damages theory if the listing contract so stipulates.