I would talk to the city zoning department.

My partner who is majority owner wants to sell the property and buy another one. 

There are statistics on RE ROI by major cities. 

We probably have the lowest amount of 2 to 4 unit properties of any major metro area to begin with, and yeah probably I bet over a quarter of them that were built have already been converted to condos.

The second option is the commercial loan department of smaller banks.

With the age of the home I need to consider major CapEx. 

Most home buyers are not interested in purchasing a tenant occupied property which will eliminate the majority of potential buyers and likley force down th esale price.

I built up a level of trust after working through 1 property that had one major repair item and several minimal repairs.

The legalities that @John Thedford has brought up aside, if the answer is hold up their end of the contract then I don't think most folks would take major issue with their actions.

Confirm it by requesting an ACTUAL receipt of deposit from his/her escrow department/escrow agent....