I agree with all of the comments below; however, you should be asking YOUR RealtorÂ® what course of action to take based on the contract you executed. Your RealtorÂ® has direct FREE access to the CAR Lawyers for LEGAL ADVICE!
Best of luck.
The seller cannot enter a new contract until the existing contract has been cancelled â€“ to do so puts the seller at extreme risk. Discuss the options with your realtor â€“ one option to consider would be to declare your intent to file a lis pendens to prohibit the seller from selling the home until the situation is resolved. That threat may be enough to get things back on track again.
If you have a realtor and you used the CAR (California Association of Realtors) purchase agreement, take a look at paragraph 14-C regarding Seller Right to Cancel. Generally, seller has the right to cancel if the buyer fails to meet his obligations. But if you have already removed all your contingencies and on time, he does not have that right.
Also take a look at paragraph 26 regarding mediation and arbitration. Did both parties sign? Then this is one of the ways you can get this resolved.
If seller attempts to cancel, he may be violating your rights and breaching your contract.
Get your agent's broker involved. If you are almost ready to close escrow, take a look at Demand to Close Escrow.