Legal Question in Real Estate Law in California

First personally go to the condo and see if you can find the seller or someone claiming ownership. Check with the HOA and tell them what happened and were are the monthly dues sent to. They will probably say that is confidential but find out if the dues have been paid because as the potential buyer you might have to pay them. Then go to the County Recorders Office and look up all the documents filed for the condo and the seller, go look at the property tax records as to where the bills are sent.

Suing in Small Claims court against the seller is largely worthless as how are you going to serve him and collect anything from him [the money help in escrow is not his]? You have to ask the escrow company what they need, but the fact that the escrow has been terminated means that they should return your money. The broker is the agent of the seller and his declaration that the sale did not go through should be sufficient. If they will not return the money, sue them and the broker. My experience has been that the broker holds the check until nearly the last minute until he knows the deal will go through so such problems do not occur. The broker has a clear conflict of interest in representing adverse parties. Has he collected anything from the seller yet?

What has the seller's lender done that is wrong? They are not involved in the sale, they just lent him money to purchase the condo originally and are acting to protect their loan. The simplest way is to go to the escrow company and tell them you will give them the choice of either being sued, they tear up the check as is should not have yet been cashed, or you will tell your bank to stop payment on the check and the escrow company should pick up that fee.