Can seller back out from escrow

[Vimal Earnest]

We live in California. Our offer was accepted and escrow open at end of February, 30-day terms. Since it’s a jumbo loan so it took more than 30-day to get our loan approved. We signed off all the contingency other than loan contingency at around March 20’s. Our agent got verbal agreement on escrow extension to 45-day. We got loan approval notice on April 6 and was supposed to close on April 9 and walk through scheduled on the same day. We never really signed off the loan contingency since the approval was and no notice was served. I guess seller wanted to server us a notice to act then approval just came in. We were told that seller was still living in the house on 4/7 and they asked if they can stay AFTER escrow was close for few days for free and we declined. We still went to the walk through on 4/9 but we didnt close on 4/9 since seller was not ready to move out. We told our agent that seller can stay there and just let us know whenever they are ready to move out and we will close escrow before loan expiration on 4/23. But on 4/12 our agent told us that seller want to cancel the escrow because we didn’t close on time. There was no notice to us that seller wants to cancel the escrow.

Can a seller cancel the escrow based on our situation? And if they cannot, usually what is the process to protect buyers right?