Legal Question in Real Estate Law in California

Re: Buying Home

It is usually inappropriate to accept an offer while an escrow is still open with another prospective buyer. The exception being if that escrow was disclosed by the seller in the contract, and your obligation to buy was contingent upon the cancellation of the prior escrow. You need to review very carefully everything you signed to see if that language is in the contract. At this point, you need to lean heavily on the bank and its agent to get the other escrow fully cancelled if you intend to go forward with your purchase. If they cannot, at a minimum I would demand reimbursement for all expenditures related to the escrow plus any "lost profits" that might exist by virtue of getting the property below its fair market value. You may also have the basis for a lawsuit to force the sale of the property to you, but the cost of litigation is probably not something you want to get into on your first home; if its a good deal, however, then you may wish to. Real Estate is considered unique under the law, and as such, you may have the right to demand "specific performance" or force the sale of the home to you as it is generally not possible to exactly replace that house by buying another. Push them to resolve the other escrow - it very likely just a technical problem of getting the previous prospective buyer to sign a cancellation, but you need to make it clear to the bank that they must resolve this immediately or they are in breach of your purchase agreement and you will seek damages and specific performance.

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