This is the road map of your transaction. 

Read section 21 of the CA Residential Purchase Agreement (assuming you transacting on this document).I've not been through mediation or arbitration myself, but if the buyer removed all contingencies when he submitted the offer, then cancelled, AND you suffered actual damages (a subsequently reduced sale price), your case seems pretty iron-clad to me.I believe you can enter mediation and arbitration without a lawyer, so I say go for it!

So you would include a "contemporaneous closing" requirement in each contract... tying the two transactions together with respect to timing.

Being from a title state brings some comfort to my transactions.

Your money will be wired to the title company handling the transaction, and ONLY to the title company (after you verified their wire instructions).

I've financed all sorts of ways and this was a fairly smooth transaction.

This is no different than folks who include illegal additional dwellings as income.

In some states it is illegal to represent a sign-call buyer.

By that, I mean, a realtor group that deals with the transaction side, will help oversee projects/contractors during flips, help be boots on the ground, and also help manage the property? 

You don't own it yet, that would be illegal : ) Get it from seller and forward and you should be good to go.