Legal Question in Real Estate Law in California

You need to review the contract carefully - with an attorney - and determine what is the basis for their termination of the contract. There are no laws in California that allow a Seller to simply decide, after signing a binding contract to sell their home, that they no longer wish to actually sell. Now, there may be other contingencies in the contract under which they elected to terminate, but simply "I don't want to sell" is not a condition or contingency I have ever seen written into a contract, nor is there any provision of California law which supports a termination in that manner.

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You can file what is known as a "Specific Performance" action that would require the seller to complete the transaction. He may also be liable for your attorney fees. As stated by Mr. Gibbs, you need the contract reviewed by an attorney. If you are working with a real estate agent, get his broker and the seller's broker involved to try to resolve the matter.

If you would like to consult with a local attorney about this, I have conference facilities in San Jose, Cupertino and Palo Alto, and would be happy to meet with you for a free initial consultation. I have over twenty years of real estate law experience, and serve as a volunteer judge and neutral case evaluator in Santa Clara County Superior Court. So this sort of case is right up my alley.