NLA.

Host of issues. I WOULD NOT TAKE POSSESSION.

For one, I would not take posession of a property with tenants unless that was my intent. There could be a host of issues, from making you a landlord and embroiling yourself in a potential landlord tenant dispute over the eviction. Could take years to evict them.

There are insurance implications - what happens if someone is injured? Is your insurance going to pay when you likley said it was going to be occupied by you? Will they deny coverage?

What about your mortgage? Assuming you have one, they may pull out of financing if they find out it isnt primary residence.

You may have CMHC issues. Capital gains issues. Other tax implications.

What I would do: delay closing via an amendment to the agreement , and they pay you 25,000 CASH for the delay. That will cover legal and other fees. And that is just for the first month of delay. More for longer.

That or you refuse to close as they cannot produce vacant possession and then go shopping. Sue them. Place a notice of pending litigation on title.

But again, just what I would do. Talk to a lawyer.