offer in escrow - seller want to back out for a higher offer???

[tmd50]

Hi,
I am purchasing a fixer uper house in Sandiego california. The offer is in escrow since 10/13.
The seller contigencies are to remove the lis pending and the tax liens which are in progress.
Our,as buyers, contigencies are onsite inspection by one of the partner and closing date by 11/31. After the inspection, we found some extra need problem: clogged leach lines and crack weigh bearing wall in the basement. We asked for extention to further invetigate or $10K deduction.

After 2 weeks waiting for their response, today we were just informed by the owner's attorney that they have a better offer and want us to up our price.

We have not removed the contingency on the inspection and we were in the process of negotiating this when they received the other offer. We can remove the contingency with out any adjustment in the price and may do that. However I expect the closing date will not be met because of a lis pending on the property and the escrow company will not be able to clear the title for this reason. This legal process of removing the expunging the lis pending is in progress.

I am looking for some legal help to see what legal right do we have with our offer? Do both parties can get out of the deal if the house is not able to closed by 11/31? Thanks

Do you know if the failure to clear the title by the closing date gives the seller an opportunity to cancel the escrow? Or are they required to accept another date and still be held to the terms of the original offer?

[AaronSOLD]

This forum is mainly comprised of web designers and real estate agents. You need to seek the consultation of an attorney in your area. I recommend doing so immediately.