Legal Question in Real Estate Law in California

Re: How to stop escrow on a mobile home

Escrow is just a process that holds onto papers and money until everything specified in the parties' instructions is assembled, at which point the escrow holder "closes" the deal by distributing the money and papers, including recording papers requiring recording.

I do not know whether a party to an escrow can unilaterally order the escrow holder NOT to close when both parties have performed all conditions precedent. Your escrow agreement may cover this, but I haven't run across it in practice, and would have to research the issue. Ordering the escrow holder not to close is not the same as canceling escrow; canceling an escrow requires returning deposited money and the escrow holder will not do that unless all parties agree, because some party may have a claim on some deposited money as, e.g, liquidated damages.

The real question here is whether you can avoid (cancel) the other contracts you're a party to. Canceling the escrow does not, in itself, relieve you of liability for your contractual obligations.

You need the services of a lawyer, to be sure, but since there is a possibility that you have rights that expire on June 7, and hiring a lawyer and bringing him or her "up to speed" and having action taken on your hehalf might not be timely, I suggest you spend all day tomorrow, 6/7, reading your agreements, figuring out what rights of rescission you might have, talking to the parties on the other side - the seller and the park owner - and deducing for yourself whether you can withdraw at all from your contracts, and what the costs might be - loss of deposits, escrow fees, etc.

The chances are rather good, in my estimation, that you can withdraw from the purchase transaction (whether under its terms or by just breaching it) and get some or all of your cash purchase money back, but that you can't avoid loss of some or all of your deposit, some or all of the escrow company's fees, and perhaps some damages or lossess occasioned by the seller.

I guess the bottom line here is that you need to avoid legal emergencies that require remedial measures on 24 hours notice. If there were a lawyer or even a real-estate professional (agent or broker) involved, I'd say lean upon them for advice. Those who put up large amounts of cash without prior professional advice are somewhat more at risk of being taken advantage of.

Finally, I'd say that if you have neither agent nor attorney to give you professional advice at this 11th hour, perhaps you should talk to a professional at the escrow company. They should give you accurate and neutral advice about the escrow itself (although probably won't give you general legal advice regarding the transaction).