That lease is a binding contract on both parties, they have a right to live there for a year under a annual lease.  

Now the house is under contract, I want to k ow if we can also place an offer...to allow a type of bidding war for the property?

You cant have construction drawings unless you have a civil engineering company with you and you cant have a engineering company with you unless you have a property under contract ..So, i would put that property under contract and then start engaging an architect to get a layout/construction drawings and once that is completed .. close on the land .. 

What would be good contingencies that favor the buyer in a land contract?  

I have a four plex under contract and have some hesitations about how involved I will have to be.

Term of lease is void once they break the contract. 

I'm far from a Lawyer, but I doubt a single month of rent can bind someone to a 3+ year contract.

I've been noticing in my city that newly listed home are having penning contracts super quickly.

Here are set numbers for my most recent sale purchase price - 105,000rehab - 28,000under contract at 178,000nearly 12,000 in fees.4600 Tax credits 1260 title insurance270.

Have a property under contract and sold to a cash investor who will rehab, great guy sold him a few properties requires property be vacant to close.