Still a bit of a puzzle Scott. Has your lender approved the preliminary title, if a lender is involved? In any case all or most of your neighbors got loans.That might give you an opinion as to risk. In any case, if you can’t decide on the “practicality” basis I would guess you need to talk with a lawyer. How do you handle it if you close escrow and the easement isn’t wiped out and can’t be? Isn’t that the same thing as buying it “as is” with regard to the easement? Do you have a special agreement to deal with the case that the easement can’t be eliminated? On the other hand the language “…whenever the Grantee(escondido) ceases to use any portion of said right of way, that portion thereof shall revert to the Grantor or its successors…”, seems to indicate if there is no city owned infrastructure on your property now, the right of way is done with. That is probably the case or the developer would have had trouble getting the project off the ground too. I don’t want to stick my neck out so far as to say that is conclusive.
If you remain worried about it, a lawyer should answer those questions on eliminating the easement. My experience is that title companies are very careful about giving advice and opinions . They just report their exclusions and that’s it. This is frustrating but understandable from a liability perspective.
Also you could bail and there are many here who will help you with that decision!I have helped a few myself.
Good luck