I understand this is not a requirement, but I have never received a damaged unit from an inherited tenant or any legal issues.

As for the legalities of setting up an LLC to protect you and your partners, I would consult with an attorney for best judgement. 

I won't be able to make the cottage legal rental without living in the primary home myself.

Well, what would be happening is that your buyer would be buying your house subject to the existing note, since you can't legally sell the property without paying off that note or transferring the debt to the new buyer.

I will preface this with the fact that I have a legal background, specifically with estate planning and asset protection.

You will want to consult with a lawyer.In regards to your last two questions here's some background on what makes a contract valid and enforceable:Offer: A promise to do or not do something within a certain time period Acceptance: A clear and direct statement that all terms and responsibilities are accepted Consideration: A legal and adequate inducement given in exchange for the promise Capacity: The parties to the contract must have the legal capacity and competency to contract Awareness: A party must be aware of the contract Legality: The contract must be legal in the jurisdiction it will be operating in***Not legal advice*** Steps I would take: -Review contract in detail to understand each counterparties responsibilities (if you are not aware)- Email a copy of the lease to each of the tenants listed on the lease and reiterate lease expectations for termination notice, rent payment etc. - If the lease was signed via Docusign (other esign may have same ability) - you can go to the envelope, go to history and view the IP addresses for each action taken.

Are there other legal or financial consequences I should be aware of?

If that does not go in my favor I may need to seek legal counsel.

There are some legal considerations as well as practical considerations 1.  

Do not rely on it for legal advice.