Inherited tenant/lease issues with sellers paying me deposits

[Lee Gierszewski]

I recently purchased a duplex. One unit was vacant, one unit has an existing tenant. I've already put the existing tenant into a new lease so that is not the issue. The issue I have is with the former lease. I was under the assumption that I should inherit the deposit ($1100) and the pet deposit ($800). I never received the $1100 at closing but my realtor was able to get that within a couple of days from the seller. I still have not received the pet deposit, and they are claiming that it is non refundable, so they should get to keep it. They are also claiming they over paid me when they gave me the $1100. Here is the email they sent to my realtor: