Be sure to review the legal documents, oral representations won't stand up in court.

the courts will determine it goes with whoever is staying.  

then again depending on state judge has to confirm the sale and your deed gets recorded by the court. 

The tenants are currently in court with a title dispute so the house would have to be paid for cash only.I would like to convert it to a primary residence and turn the garden level into a separate two bedroom apartment for use as an in law suite.

I won as well but he still has not responded to request to pay the court orders.

It takes time with court meetings, etc as a debtor or creditor. 

Oregon has officially declared war on rental-property owners.

No negative action however ridiculous was not stifled, instead it was declared the system need conform to facilitate there whims however ridiculous. 

It also isn't enough proof for a judge in small claims court, if you decided to file on the guest there - you'll need your own rental agreement.

Looks like the money goes to the Escrow Company so no loss but the seller has to sign to release it. and if the seller thinks they were lied to by the wholesaler ( very common) they will not sign.. and the money is stuck too small to litigate over and if not resolved the title company will file an interpleader with the court and send the money there.