Legal Question in Real Estate Law in California

First, I'm assuming that the property is now owned individually by the two parties as joint tenants or tenants in common, and there is no longer any trust or trustee involvement.

Then, I wonder how this sale transaction got as far as opening an escrow without there having been some resolution of the parties' rights to share the proceeds. Have both co-owners signed off on the escrow instructions?

California law tends to set up a rule that a co-owner is entitled to reimbursement for excess necessary expenditures for the maintenance of the co-owned property, including property taxes, insurance, mortgage payments, and necessary repairs. Improvements are less likely to be awarded as a cost requiring reimbursement, especially if they were made without prior agreement and tended to benefit only one owner. This principle is applied when co-owned real property is partitioned by sale in a court proceeding under Code of Civil Procedure sections 872.010 et seq.

If the escrow holder is one of the larger companies and has a competent law department, it might be a good idea to pose this question to its in-house attorneys. Escrow procedures differ somewhat between Southern and Northern California, and the escrow holder there may not have legal staff able or willing to advise the parties. In that case, or if they can't resolve the issue, you may want to engage counsel.

You are wasting your time contacting escrow.

First of all, Mr. Whipple is correct that one tenant in common or a joint tenant has a right of contribution to be reimbursed for making property tax payments on jointly held real property. But unless that right has been established by a court judgment in your favor, with an abstract of judgment duly recorded, the escrow company has no duty or right to set off funds different than the escrow instructions.

I also don't understand how an escrow could be opened without the other party being involved.

The sale cannot be completed without the agreement and signature of all owners of the property.