Buying wholesale property - Tenant in place

[Pouyan G.]

I'm under contract to purchase a wholesale property (Duplex) and the wholesaler from whom im purchasing has a contract with me and the seller of the property stating that the property will be delivered empty on close of escrow but the wholesaler is now telling (3 days before close) that the tenants in both units don't want to leave and that the owner who is suppose to deliver the property empty isn't much help. i just got the tenants information and am vetting them in consideration to keep them on but they don't seem to want to sign a new lease. At this point i have 3K EMD in escrow but am wondering what my options are and how i can approach the situation.

1) My immediate feeling is that there is a lot of liability here when i didn't get a chance to properly vet the tenants, or get the rent roll or deposit info. would you call this a breach of contract and ask for EMD back?

2 What is the process of providing proof to the escrow lawyer that there was a breach of contract on the seller/wholesalers side to get the EMD back?

2) Any other options you would consider? running a credit check and taking the current tenants month to month?