Legal Question in Real Estate Law in California

Without knowing more about exactly where the transaction was in its process at the moment bankruptcy was filed, I'm not sure what to tell you. I could go on and on with "if this then that" in trying to think of all the possible results of your situation. And I still might not answer your question correctly. If you would like to go over all the details and get my take on the situation, please call or email and I would be happy to give you a no-obligation consultation, either in one of my Northern California offices, or by telephone if you are not convenient to the Bay Area or Sacramento. I do handle a number of Southern California cases, and have a Carlsbad office, but do not travel that far for free consultations.

Good luck. Your problem is that the seller no longer has authority to sign anything, only the bankruptcy trustee will. Since they can't sign escrow cancellation, it remains in limbo, and no, you can't unilaterally cancel. You may be able to get your money back from the title company by canceling that issuance, but for anything else you'll probably have to wait until this is all resolved in court. First, confirm and be sure that you can't get title, possession and keys now. Talk to your lender, broker, title company, etc. If title costs are all you seek, try for it. If you have other money invested you want back, and if you really can't get possession, you are going to have to file a claim and motion[s] in the bankruptcy court to get court approval for the property closing and transfer.

Mr. Nelson is close to the mark, although it depends on which chapter of bankruptcy they filed, to determine whether there is a trustee or they are a debtor in possession.