Legal Question in Real Estate Law in California

Being in escrow strongly suggests the really important fact here -- that you are "in contract" to sell. Your contract may have as-yet unmet conditions and/or unremoved contingencies, but these tend to excuse buyers more often than sellers. So, more likely than not, if you refused to sign the deed and close the escrow by selling the house, you would be breaching your contract.

The remedies for breach of contract to sell real property may include "specific performance," an enforcible judgment requiring the breaching party to honor the contract in full. Of course, not every breach of an agreement to sell results in a claim, much less a lawsuit, but there is a significant risk to you. In addition, by now your agent (if you have one) has probably earned his or her commission, and can probably sue for it and collect whether or not the deal closes.

You might want to discuss your feelings, at least in a tentative way, with the agent and/or the buyers before trying to call off the deal, to see how the others feel. Also, if the buyers are unable to close for any reason, the problems shift over to them.

You entering into a binding contract. If you breach it you could be sued for specific performance and damages. Negotiate your way out if you can.