I don't think you can have rent back cluse in short sale contrac

Bank will not allow it.  You probably have to sign a document by bank saying that the seller can not rent back (called Arm Legth Statement)

and 10% of earnest Money to the title?   You are really screwed up by this agent.

Depend on where you are in the process, this may become non-refundable.

So find a lawyer as soon as possible and review your contract.

This is the typical result of not using your our buyer agent.  Nobody is proyecting you.