The concern there is that they do not understand local conditions and are making the process very difficult and lengthy.

My attorney, however recommends that I avoid this since the local courts tend to look at this as a purchase, which could result in a lengthy foreclosure process when things go south.  

The first method would be to divide the partnership with IRC Section 708(b)(2) providing for a lengthy but possible solution.  

My realtor keeps pushing me towards lengthy closing periods (4-5 weeks from contract acceptance) to make sure we can get a good inspection, but isn't the benefit of cash a quick closing?

If you take that risk and break these covenants, your worst case scenario involves a lengthy legal battle which you will lose, and then a lien will be placed on your property, and if it is not paid, you can lose your property.

I have a lengthy Legal Opinion, from my seasoned Legal Team regarding this matter. 

If money is the most important objective and you'd like to keep the houses in tact, you could go through the lengthy process of finding a lot for the houses, moving them, then putting apt buildings on the lot and you'll be making the most out of everything by passively collecting on the tenants in the apartments and the houses but you will have spent the most time and money. 

.- sell price 7,800,000 HKD- Length 10 yearsSeller accept leasing option but refuse price and length and offer the following:- Monthly payment 15,000 HKD + 2,500 HKD management fees- Sell price 8,600,000 HKD- Length 36 monthsThe bank (HSBC) valuation on the property is 8,600,000 HKD (i believe this is how seller get this sell price).My original idea for the exit strategy is as follow:Supposing to get the all floor for 20 years length and with our terms and at the price of 7,900,000 HKDWe will invest about 390,000 HKD to renew the office and transform the office into 21 small office space that will rent for 3,500 HKD per month, making a monthly income of 73,500 HKD (- vacancy and other expenses and 15,000 rental would give us a minimum monthly income of 50,000 HKDWith a 20 years lease option, will give us 240 month at 50,000 HKD per month = 12,000,000 HKDWe will them buy the property at the agreed price and keep the office space.But as seller do not agree with our prices and length, i am not very sure about this exit strategy...The goal will be to keep the property as i am mostly looking to hold on all the properties i can put under contract.I do not need quick cash, and more looking at building a long term growth.Could you please advise some other ideas that would make sense?

As you mentioned there will undoubtedly be an impact to the market, but it's near impossible to say how deep and lengthy these changes will affect pricing.If I were you, I'd look closely to see if the property you're interested in are more affected by these new rules.

Including the lengthy and detailed PPM.