In California they sign this puppy ...It is understood and agreed that this agreement applies to all known and unknown claim of loss and we, (husband/wife) waive all right or benefit that we may have or in the future may accrued under Section 1542 of the Civil Code of the State of California, which section reads as follows: General Release: Claims extinguished.

In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.Violations of Section 8's anti-kickback, referral fees and unearned fees provisions of RESPA are subject to criminal and civil penalties.

@William R. if he gives you too much grief you can always ask him if he wants you to call the police to help him report it, or will you need a civil standby when he leaves etc.

Its still bad compared to civilized cities though.

Do not avoid an attorney is my advice.You need to make other friends too, some Realtors (not just one), bankers. mortgage brokers, title people/closing agents, appraisers and in your area, take a building inspector to lunch and pick his brain and a civil engineer.

That's not accounting for any debt carry, management fees, maintenance, vacancy, liability, litigation, etc, etc....A negative cash flow multi family rental property is straight up indentured servitude.

Is there any pending litigation?

@Rashad S. if the owner is still on record the search on the county civil records site.

You might want to consult a real estate litigation attorney about options and something as simple as an attorney letter sent tot eh seller might scare them into closing depending on the reason they decided not to go through with it.

Jumping through the hoops and disclosures under the "Home Equity Sales Contract" act, CA Civil Code Section 1695, et. seq. is highly prudent.