All of these remedies are available to the nonbreaching party in Arizona real estate contracts.

If you’re stepping into Arizona real estate contracts, you’ll hear a common refrain: when someone doesn’t pull through, there are several ways to right the ship. The nonbreaching party isn’t left stranded—Arizona law provides a menu of remedies. And yes, you’ll see these options listed in real-world contracts: specific performance, retention of the earnest money, and money damages. Together, they capture the full range of recourse available when a breach happens.

Let me explain why there’s more than one path. Real estate isn’t a one-size-fits-all deal. Properties are unique, timing matters, and the seller’s or buyer’s losses can be very different from one transaction to the next. Because of that, a single remedy may not always be the fairest or most effective. In many situations, the best route is a blend of remedies. Arizona contracts reflect that reality by allowing several avenues to coexist or be pursued in sequence, depending on what the nonbreaching party aims to protect.

Specific performance: when money isn’t enough

Here’s the thing about real estate—the property itself is unique. Money can cover some losses, but it can’t replace the very real value of the home you intended to own or the property you planned to sell. That’s where specific performance comes in. It’s a court order—often sought by the party who is ready and willing to close—that compels the other side to fulfill their contractual obligations.

In practical terms, if a buyer backs out after contingencies have cleared, the seller might ask the court to force the buyer to complete the purchase. Or, if the seller refuses to honor the deal, the buyer could seek specific performance against the seller. It’s not automatic, and courts consider factors like the contract’s terms, the property’s uniqueness, and whether there’s a genuine breach. In short: specific performance serves as the “make them do what they promised” option.

Earnest money: the safety net built into the deal

Next up is the earnest money—the good-faith deposit that shows serious intent. This money isn’t just a token; it often serves as a form of liquidated damages when the buyer breaches, and it gives the seller reassurance that the buyer is truly committed.

Why does that matter? Because every breach comes with a cost to the nonbreaching party. If the buyer defaults, the seller may lose time, money, and the opportunity to move on to another prospective buyer. The contract typically spells out what happens to the deposit if a default occurs. In practice, keeping the earnest money can help offset those losses, provided the contract supports it. It’s important to read the wording to know whether the deposit is refundable under certain contingencies or forfeitable upon breach.

Money damages: compensating for actual losses

Beyond forcing a buyer to close or keeping the deposit, the nonbreaching party can seek money damages. This means pursuing compensation in court for financial losses that flowed from the other party’s breach. For a seller, this could cover the extra carrying costs, re-advertising costs, and the difference if a new contract comes in at a lower price. For a buyer, damages might cover costs incurred to repair or mitigate issues after the breach, though the exact damages must be proven with receipts and documentation.

The key with money damages is proof. The nonbreaching party has to demonstrate actual, measurable losses and show a causal link between the breach and those losses. It’s not a blank-check scenario. The goal is to make you whole, not to punish. And in real-world terms, this remedy often works alongside other options, especially if the contract already anticipates liquidated damages through the earnest money.

Putting it all together: a practical view

Okay, so you’ve got three levers. How do they work in a real transaction? Sometimes a seller will push for the possibility of specific performance if time is of the essence and selling to the buyer is critical. Other times, both sides might prefer to settle quickly with the earnest money and proceed with a different buyer, especially if market conditions have shifted. And there are plenty of cases where money damages become the simplest path forward, particularly when a quick resolution is needed and the property’s unique value doesn’t tip the scales toward forcing a sale.

A few practical notes to keep in mind:

• The contract language matters. The exact remedies available—and the order in which they’re pursued—depend on how the agreement is written. Contingencies, deposit terms, and damage clauses all shape what you can do if a breach occurs.

• Specific performance is powerful but not automatic. Courts will weigh whether it’s appropriate, feasible, and fair. They’ll also consider whether monetary damages would be an adequate remedy.

• Earnest money isn’t a universal penalty. Its treatment hinges on the contract and state law. It’s designed to compensate for time and opportunity lost, not to punish the breaching party.

• Damages require documentation. If you’re pursuing money damages, gather invoices, closing costs, appraisal reports, or any other evidence that ties losses to the breach.

What to watch for in your contracts

If you’re studying or practicing in Arizona, keep an eye on how the contract handles defaults and remedies. Look for:

• Contingencies that, if not satisfied, allow termination without penalty. These can affect whether specific performance is even on the table.

• Provisions about how earnest money is held, when it’s released, and under what conditions it’s forfeitable.

• Clauses that describe what constitutes damages and how they’re calculated. Some contracts spell out a cap or a pre-agreed amount, while others leave the door open for actual damages.

It’s not just about choosing one path; it’s about understanding how the paths interconnect. A party might start with a demand for specific performance and, if negotiations stall, pivot toward damages or deposit remedies. That flexibility is a feature, not a flaw. It reflects the real-world dynamics of buying and selling homes, where timing, price, and the emotional weight of a transaction all play a role.

A note on the emotional side

Breaches carry a weight beyond dollars. There’s frustration, a pinch of mistrust, and sometimes a race against the clock. The law provides a framework to navigate that stress: a set of remedies designed to restore balance and allow a fresh start—whether that means closing the original deal, moving on with the deposit in hand, or seeking financial redress. Understanding these options doesn’t just protect your bottom line; it also helps you stay grounded when emotions run high.

In everyday terms

Think of it like this: you’re buying a home that represents years of plans, renovations, and memories to come. If the other side falters, you’re not left empty-handed. You have several routes to either force the deal to go forward, at least recover the costs tied to the breach, or secure compensation for what failed to materialize. That combination is why the remedy set is described as comprehensive—because a breach can affect different layers of a transaction, not just the bottom line.

Final takeaway

When a party doesn’t hold up their end in an Arizona real estate transaction, there’s a trio of recourses that frequently come into play: specific performance, the earnest money as a safeguard, and money damages for measurable losses. All of these are available options, and in practice, they’re used alone or together depending on the facts, the contract’s language, and the goals of the nonbreaching party. If you’re navigating these waters, read the contract closely, gather your evidence, and consider which remedy or combination best serves your situation. The right choice isn’t just about getting a sale to close or getting money back—it’s about restoring balance and moving forward with clarity.

If you want, we can walk through a hypothetical scenario together—one that mirrors a typical Arizona deal—so you can see how these remedies play out in real life. It helps connect the theory to what you’d actually encounter on the street, with a buyer, a seller, and a ticking clock in the background.