Seller did not perform, but send demand to close escrow.

[Fangting Wu]

Hi,

Just want to get some inputs from experts here, how to handle the situation. 

We (buyer) are in contract early Dec. Then we noticed that someone moved in the property. We informed the seller on that day that someone moved in his property. Seller told us that once our appraisal was approved, he will inform that person to move out three days after receiving appraisal approval. Once we received our approved appraisal, we informed the seller. Then selller sent the notice to ask that person to move out the property. But that person is still in the property now. We want the seller to take eviction to have the property vacant so that we can proceed close escrow. Now, the seller sent us demand to close escrow. Seller said, he did sign lease agreement with that person and void the deposit. Either we close escrow in three days or cancel the purchase. We feel it's so unfair. What should be do? Any advice will be appreciated. Many thanks!