Legal Question in Real Estate Law in California

Re: Close of Escrow dispute between buyer and seller

There is a statute of limitations for actions on written contracts, but that's not the concept involved here. What you're asking is, I think, whether there is a time within which an escrow must close. This is not a statutory matter; it's a matter of contract between the parties. Most transactions that are placed into escrow include some language specifying the date upon which escrow must close.

My impression is that what we have here is a rather straightforward disagreement over the terms of one or more contracts.....either the underlying equity-sharing agreement, or the subsequent buy-our agreement, or both.

One way to resolve the issue is for one of you to sue the other. You could sue for specific performance of the buyout contract, or the other party could sue for the additional money claimed. Ultimately, the matter would come before a judge or jury who would interpret the contracts and declare the winner (and loser).

The amount of money in dispute ($14,000) does not warrant the expense and other woes of suit and trial.

My suggestion is mediation and/or voluntary submission to binding arbitration. If both parties placed all the documentation before an experienced NEUTRAL third party, that third party could quickly apply legal and real-estate principles and tell both sides who was "right" and who was "wrong" and predict the outcome of a lawsuit. That's mediation (or one form of it); if the mediator is given the power to make her/his decision final and binding on the parties, that's arbitration.

I could not even venture a guess who's right in this matter without reading the contracts carefully. However, I would hesitate to blame either the title company or the real-estate broker(s) initially. There may be some fault with them, but more likely one or the other principals is misinterpreting the contracts.