Legal Question in Real Estate Law in California

It is not legal or illegal, so much as effective or ineffective. The acts of a suspended corporation are ineffective. However, if the suspension is cureable (and I'm not able to think of any grounds for suspension that are not, off the top of my head) once the suspension is cured, all acts during suspension are revived. The other problem is that even with a suspended corporation, if you want to undo a deal, you have to give back what you got. So you would have to offer back whatever you were paid for the property, and sue for recision if they did not agree. Since they could revive at any time, that would probably be a pretty big waste of money. Only if you sued for recision, and they still did not revive, and you took their default (since they can't file an effective answer without reviving), and they STILL didn't revive, and you got a default judgment for recision, and they STILL didn't revive, and you gave back all the money you were paid, THEN you could have your property back.

Agreed. IF you are otherwise entitled to try to get back the property because the corp has defaulted or something, then you take the proper steps to do so, without regard to the corp suspension. It is their problem, not yours. Just because the corp is suspended does not give you grounds to rescind a deal for that reason alone.