As for the right to cancel in the contract because your deal fell through once again unless that was set up as a contingency in the contract.... talk to an attorney soonest.
These sections specifically pertain to sales transactions of homes in foreclosure, between sellers and investors or "equity purchasers".
The code sections are pretty easy to read and set forth very specific guidelines that the investor/buyer and/or their representative (real estate agent or broker) must follow.
Most importantly, they must tell you that you have the right to cancel within a specified timeframe and a notice of cancellation must be written into the body of the contract in at least two places.
These laws are in place to help safeguard equity sellers in distress against being taken advantage of by equity purchasers (investors).
New homes come on the market everyday and it only takes one to make the sale of your home a good thing. Hang in there and you might be surprised what you will find down the road. Good luck.
You can always try to talk to the buyer because life is not only contracts and papers, the buyer might have a heart and he will understand your situation.
I got things done like this before many times for my clients. it might going to work for you, but it doesn't heart to try.
You should have mentioned in the MLS listing and the first counter offer that the sale would be contingent upon the Seller securing a satisfactory replacement property.
But keep in mind that given market reality it's difficult to obtain such a concession from Buyers since it empowers the Seller so and potentially leaves the Buyer hanging.
No one wants to move twice - sorry. Try making lemonade... find an even better value in a an even more attractive home - the market is still working for you.
If you and the Buyer did agree and both signed a Seller Contingency to find replacement property then it is likely that you can pull out
Your agent should be able to help you out in this situation.
Maybe you can offer the buyer of your property some sort of incentive to voluntary cancel the contract based on their Investigation Contingency
I'm so sorry you find yourself in this situation, BUT the good news is that there are at least a lot of properties to choose from in this market and it's much harder to find qualified buyers. So maybe you can find another replacement home that fits your needs?
Good luck to you!