I'm not an attorney, but it seems to be that you had a weakly worded agreement that was agreed to in your original contract.

At closing, you sprung new conditions ( a security deposit that had to be paid then along with penalties). With no consideration for the sellers.

The time to include the tough language was in the original contract.

I'm sorry that I don't really know what your next move is, if you're not willing to consider a step back. You already have an agreement in place.

Edited to add: After a minute, it occurred to me that you do have something to offer the seller. In exchange for the tougher wording in the leaseback agreement, you offer a lower rent. Not $50 or $100 lower, but significantly lower.

These sellers tried to back out after they signed the contract with an agreed upon date for a leaseback but nothing around the rent amount of weither there woukd be or woukd not be a security deposit. we do not trust the sellers now that they tried to not let us in during our Due diligence period.

this is why when we sent the leaseback it was worded this way. we agree our agent didnt get the leaseback deals into the original contract in the first place but eithier did the sellers listing agent.

I do not agree with the comment ”With no consideration for the sellers.” we have given them a lease with under market rate and stuck to all our contractual obligations.

I presume you did not have an attorney review the purchase agreement before you signed it? Not sure what you do at this point other than confer with your attorney to find out what your options are to extricate yourself from this situation. We leased back a house we sold and the lease agreement was part of the deal right from the start. Of course we didn't sign a binding contract without having an attorney review it and he immediately pointed out the need for a lease. Real estate agents want to get the deal done. They don't want to introduce complexity like a lease that might torpedo the deal. It's typically less expensive to invest a few hundred bucks to have a real estate qualified attorney review agreements up front rather than paying one to get you out of a bind after the fact.

I would find out what parts of the leaseback agreement they find objectionable. Get beyond yes/no to the specific concerns behind the stated position. When I'm negotiating my way through what appears to be a positional impasse, I often ask "what's the horror story?" Meaning what's the scenario they fear that has led to proposal of specific language (or refusal to sign language). Then share your "horror story" of what you fear will happen without the language you're proposing.

This often helps you see the common ground, and realize you agree on more than you think. It opens avenues for modifying language that accepts and addresses both of your concerns and achieves both of your objectives. I can't tell you how many times I've objected to contract language, and when we speak to each other in English we find that we both agree conceptually. Then we just have to craft language that says what we both already agree on.

For example: they say they've got no cash to pay for the rent and security deposit. Your horror story is that they stay a month and never pay you. You agree to hold part of the sale proceeds in an escrow account, to be released to you upon their vacating of the home. If they're unsure if they can move out in a month, then you amend it to allow for overstaying at a specific (higher) rate, with a larger escrow. Or they're worried you won't return their security deposit, so you leave it in escrow and add specific language that says what they have to do to get it all back. You get the idea.

I have found that even if they are unwilling to share any specific concerns, if you share your horror story, that can still lead to the same ability to find language that works. For example, your horror story is that they will overstay and never pay you. They protest that of course they would never dream of doing that. Now you have verbal agreement that they won't overstay and that they will pay you. That makes it a lot easier to draft language that addresses this.

Of course, it's possible that they won't protest that they would never dream of overstaying or stiffing you. If so, they've shot themselves in the foot. You now have much stronger grounds to argue for language to address this.

"If you're telling me you're willing to do X, then why aren't you willing to put that in writing?" can be a useful question. It digs down another layer.

Good luck!

Well that’s the thing with a contract, both parties need to agree, if both don’t, no dice. Ask the realtor what they are having issue with. If it’s the deposit or the rent back or what? Once you know then you can adjust if you want. You need to talk with your realtor who needs to talk with their realtor. We sold our house with free rent back, we didn’t pay a deposit or sign any kind of rental agreement. Our contract said the the house would be in the same condition at possession as it was when the buyer viewed it and that we needed to be out on specified date. That was all. It sounds like you are worried they are going to walk away from the deal. Addendum’s always run that risk.