Legal Question in Real Estate Law in California

If you are in escrow, the seller should not have the deposit. If the seller cannot deliver title he is in breach of the contract and not only should return your deposit but is also liable to you for damages.

Sounds to me as though you were trying to buy the house from someone who didn't yet own it. Are you using an agent? Did you get a title report. and if so, did you read it? Possibly you have been defrauded by the so-called seller.

Excuse me? If I understand you right, you couldn't get a loan, and the seller didn't transfer title because escrow didn't close, due to lack of loan funding. What makes you think the seller has to transfer title before being paid in escrow? If you can't get a loan, that is not the seller's fault.

If your Purchase Agreement allowed the seller to take the deposit upon 'removal of contingencies', his taking was approved by you, You'll get your deposit back only with the agreement of the seller, or through a court order as a result of filing suit and convincing the judge you are entitled to it.

Now if I misunderstand this, and somehow the seller actually defrauded you by not having title to give, then you would have the right to sue for fraud and return of your deposit. In that case, feel free to contact me if serious about getting legal help.