Seller doesn't wanna give up deposit

[Oscar Turner]

Hi guys, I am under contract as of today on a multi family property. My issue is the owner is telling me that a fully occupied building doesn't have any deposits left for me to collect at closing. I ask why and he stated that when the tenants were late on their rent he subtracted the late fees out of their deposit. He never evicted any of them. Is this legal? How can he be a passive landlord and keep the deposits? The tenants would make have zero incentive to take care of the properties.

[Charlie Fitzgerald]

Demand a price concession equal to the deposits that are missing or walk.  I promise you that the tenants will say they never were late and they have full deposits due to them when they move out and you will be stuck for that.  Or, at the least, if you are going to move forward, make the seller provide notarized affidavits from each tenant attesting that they have no deposits due to them.