Legal Question in Real Estate Law in California

I assume you are the buyer. Did you use a licensed agent/broker to represent you? If so, that's where I'd begin making inquiries........your agent has a responsibility to help keep you out of bad deals. Who selected the escrow holder? Who has a copy of the contract with the escrow company? Does it mention these fees? Does it have an attorney-fee clause? If your agent or the agent's broker can't or won't help you or give you an adequate explanation, you could consider taking the seller (whom you blame for your losses) to Small Claims Court for money damages. It doesn't sound as though the escrow holder is at fault unless it is charging more than the parties contracted to pay.

Escrow companies are licensed and regulated by the California Commissioner of Corporations. The fees they may charge are regulated to some extent. The laws relating to escrow companies are found in the Financial Code, sections 17003 through 17701. Of particular interest, Finance Code section 17421.5 authorizes the charging of an additional fee for handling an escrow that has been postponed by at least two months if that fee was disclosed and agreed to by the parties by iniitaling language disclosing the fee in the escrow instructions or contract.

Real estate agents and brokers are licensed by the Department of Real Estate, and if you conclude yours is at fault for getting you into a bad deal, there's where to lodge a complaint.