Legal Question in Real Estate Law in California

It would require a review of the entire set of documents exchanged over the course of the transaction to make a full determination of your rights. Without that, it is impossible to say exactly what your rights are. Generally, though, they cannot indefinitely postpone closing the deal. In fact you can sue for breach of contract for failure to close the deal at some point. Again, though, without seeing the exact terms of your agreement and any extensions or other modifications, there is no way to say exactly what your rights are. If you cancel before they are obligated to close, they would be entitled to the deposit under most normal real estate contracts.

They can't hold your deposit as damages if they are in breach. It sounds that they cannot close escrow because they cannot convey complete title. If they retain your deposit now, without all owners agreeing to deed the property, then I would sue the sellers and their agent for fraud.