Obligation to tenants

[Brian Brown]

We have our home in another state that we weren't able to sell a few years ago so we decided to rent it. It was owned free and clear before we took a mortgage against it to pay for a duplex connected to our current property. In this current market I believe we can sell the other home, payoff the mortgage and have roughly $120k to use towards other properties. My questionis with a signed contract for a year's lease do we have an obligationto keep it till this contractis up next June or can we sell it giving notification that we are going. Thanks for the advise BP nation.

[Scott M.]

Well, generally kind of hard to sell a rented home to a retail buyer.  If that is what you want to do then the tenant needs to vacate but you have a valid lease by the sounds of it so up to you and the tenant to come to an agreement on new terms.  If they refuse and they pay rent and they keep the home up and live up to your lease agreement, you may need to wait until it expires.