For example, in Alameda the buyer is expected to pay the escrow fees, whereas in Alpine the buyer and seller split the escrow fees. This blog post aims to unravel the legal intricacies and potential consequences of backing out of an escrow contract in California's real estate market.But is the property truly yours? Can a seller back out of escrow? As of Close of Escrow, Seller shall cause the release of any existing monetary encumbrances or other monetary security interests in the Property. However, before escrow can close, several events must first occur: All parties must sign the escrow and closing documents. All contingencies in the purchase. If not done earlier, during escrow, you must choose a lender or mortgage broker, complete a loan application, and provide financial documents. The seller needs more time to move out of the property. Bad weather has made it difficult for people to access the property or complete repairs.