Legal Question in Real Estate Law in California

Re: breaking sale contract

Probably not, unless the buyer fails to perform according to the terms of the contract. Even then, you would need to demand their performance before you could cancel according to the terms of the contract. If they really want your house, they can file suit to demand specific performance.

Re: breaking sale contract

I'd say probably not, and any chance you might have to back out would depend upon the slim chance that the buyer would let you out of the contract, either from extreme sympathy or getting cold feet himself/herself.

In abstract legal theory, equitable title to real property passes from seller to buyer when the contract of sale is signed and the last contingency is removed. The seller still has so-called "bare legal title" and is under a contractual duty to convey that at close of escrow.

Theory aside, there are three real-world possible outcomes: 1. You get real lucky and the buyer lets you out of the deal. 2. The buyer finds another house and sues you for money damages. 3. The buyer can also sue you for what is called "specific performance," which amounts to a judicial decree enforcing the contract of sale and obliging you to convey the legal title to the buyer.