Legal Question in Real Estate Law in California

Re: Residential Sale of Escrow Cancelled

I assume you are A. I also must assume that the lender had gone along with the agreed short sale terms. You breached the contract and the buyer can sue for either specific performance [you have to sell him the house for the agreed upon price] or his damages [basically difference between a similar house would cost and the price you agreed upon].

Re: Residential Sale of Escrow Cancelled

As Mr. Shers points out, the issue here is not cancellation of the escrow. The problem is breach of the contract to sell the house. A should have concentrated on cancelling the contract of sale, not the escrow. One of the remedies for seller's breach of a contract for sale of real estate is so-called "specific performance." Instead of awarding money damages, the court issues an order requiring the seller to sell (provided the buyer remains ready, willing and able to buy). If the now-reluctant seller refuses to obey the court's order to sell, the court will find the seller in contempt, and may either put the seller in jail until he signs a deed, or, more likely, will direct the clerk to sign the papers on behalf of the seller and with the same effect as if the seller had personally signed the deed.