In Texas, the contract states the seller is required to deliver the home to the buyer in the same condition it was in at the time the contract was executed.

Actually you could do this yourself, execute a deed of trust have it notarized and note then take it to the recorder's office, but really, you should go to another attorney.Your sale contract most likely is a cash sale and the closing company/title company must close it as a cash transaction, that means they can't close it with a purchase money note and deed of trust.Execute your deed and note after the sale, you need to ensure the closing is recorded before you file your DOT.One good reason for you to do this is because people die and the note and DOT resolves estate issues, it is the proper thing to do.BTW, note and DOT or mortgage, which ever is used, basically shows the debt and encumbrance on the property. :)

My wife and I have talked about "selling" our interest to someone else, but not sure if we could actually execute something like that. 

You would be able to decide the market rent, choose the tenant, and execute the lease agreement (depending on the specifics of the retirement structure).

We are trying to figure out our next step once we end up selling next year now, so we have a plan to execute.

What are my options regarding exit strategies if one were to execute this lease option?

One must have a great acquisition strategy and the ability to execute on the upgrades.

Turn the case over to a collection agency for a fee which will get a ding on their credit at least or file a writ of execution and then the sheriff gets involved   Google debt collection.  

With the execution of a new 1-year lease and placement of a security deposit by the new tenant PLUS a pristine final walk-through of the property, you will allow her out of the lease. 

Wanted to vent/shed some light on something that is so important but often times executed so poorly and that's communication.