What is "performance" in the context of a real estate contract?

In the context of a real estate contract, "performance" refers to the fulfillment of the obligations set forth in the contract. This means that both parties are required to adhere to the terms that they have agreed upon, which may include actions such as completing the sale, transferring titles, making payments, and meeting other specified conditions. Performance is crucial because it signifies that each party is executing their responsibilities according to the agreement, thereby ensuring the contract is honored.

While earnest money is an important aspect of real estate transactions, it represents just one element of the broader obligations in the contract and does not encompass the entire concept of performance. Negotiating contract terms is a preliminary stage before a contract is executed and does not involve the fulfillment of those terms. The execution of property deeds pertains specifically to the transfer of ownership and is also a specific action, rather than a comprehensive view of performance in the broader context of the contract. Therefore, the focus on fulfilling all contractual obligations accurately captures the essence of performance within real estate contracts.