Purchase Contract w/ 2-year lease before closing

[Karen A.]

You have a mess, you should never have leased the property with a tenant being responsible for maintenance and repairs.

It could be assumed the home warranty would be provided at closing, not at the time of a lease as the tenant would not benefit as they aren't responsible for insured items/perils until they own it.

If there is a default, I suggest you confront the tenant, terminate the agreement based on the next default (as you accepted rents since) and then reimburse her for costs and offer cash for the keys. You might entice her with a first right of refusal instead of a purchase agreement. Terminate the lease, you may need an attorney to evict here if she claims an interest in the property, so reimburse here for costs before you go there. Then sell it to a real buyer. :)