Legal Question in Real Estate Law in California

Not only can your agents sue you, the buyers can sue you. You formed a contract when you accepted the offer. It may have been contingent on the bank accepting the deal, but once they did it became a fully binding contract. They can sue you to force you to sell the house, or they can sue you for damages.

I see at least two potentially serious problems.......first, if your agent has performed everything he or she needed to do to earn a commission, you'll be obligated to pay it whether or not you close the sale. Also, if you are "in contract" with the buyer and the various contingencies such as bank approval, etc., are all satisfied, the buyer can sue for remedies for breach of contract that might include money damages or perhaps "specific performance" in which the buyer would be asking the court to order you to carry out the sale whether you want to or not. Without taking a pretty careful look at the listing agreement, contract of sale, bank approval, and any other documents (perhaps the buyer's financing), a lawyer could not say for sure what your exposure is if you try to back out, but I'd say it is significant and you should get legal advice before taking any action that might be a breach of your listing agreement or contract of sale.