[ScottGem]

What does the contract with the property manager say about the return of deposits being held by them. If the contract can be terminated with one month's notice then there should be no issue about terminating their contract.

[1bluesky]

So it depends on your agreement with the property manager. I doubt they take kindly to being cut out of any fees because you negotiated an agreement directly with the tenants and not through them. Why didn't you? It might have been cheaper and a cleaner process.

My new agreement with the tenants DOES NOT INCLUDE ANY property manager to be involved. That is why I did negotiation directly with tenants.

Now I wonder how do I terminate the old lease contract as it was originally negotiated and signed by the property manager on my behalf? Is my property manager still in charge to end the lease agreement?

Can I just sign new lease agreement with the tenants and stated that the old one is out of enforcement?

[ScottGem]

First, a lease agreement doesn't necessarily have to involve a property manager even if there is one. Other than indicating where rental payments go, a landlord's use of a property manager does not have to be listed.

Second, it does not matter that the original lease was signed by the PM. The new lease should contain language like:

This lease replaces and supercedes any previous lease agreement for the property.

That will, effectively, end the old lease as of the effective date of the new one.

Third, whether the PM is still in charge depends on your contract with them. If the contract has language that says that the PM is responsible for all lease contracts during the term of the contract with you, then you may have an issue. That's why we have been telling you all along to make sure you read and fully understand the terms of the contract.

[talaniman]

Contract termination:
Either party, upon one month's written notice to the other party may terminate this agreement.
So, I would have to pay them one month regular rates, and I will do so.

Have you done this? It would seem a simple thing to have the PM also inspect the property as well for dispensation of the deposit. Likely when you terminate your contract with the PM, the deposit is given to you to do as you want.

It would also seem you cannot be there to do these things yourself, so talk to the PM, express your wishes, and get clarity with them before you move ahead with any more agreements, with anyone. At least you will know your options, so you can proceed ahead, since your biggest fear is addition costs to the PM for arranging sale of the house.

I would straight up tell them in writing to inspect the home and deal with the deposit, and terminate the contract because you wish to sell it yourself. Be aware the tenants have a right to a clear title, so you may still need an agent (title agent) to work in your behalf for a fee.

You seem to be haggling over who does what for how much, so do your due diligence in getting facts so you know your options, and how to exercise them.