Sounds like you need professional help. Do you have a Realtor or lawyer involved? Seems like escrow shouldn't have been opened if all parties didn't sign contract. Not sure about California, but In Colorado, in order for escrow to be opened all parties need to sign closing instructions, specifying who is to hold the earnest money (i.e. title company, law firm or real estate broker).Here in Colorado the info in MLS isn't binding. Did you ever provide a seller's property disclosure? This is where a seller can get into trouble if they didn't disclose something properly. Good luck.