Selling Multifamily with owing tenants

[Hai Loc]

If you are selling a multi family property and say 5 tenants have a negative balance. Does this get washed at closing? 

I think it would be unfair to the buyer if the seller credits themselves the security deposit amount to compensate for the negative balance.. 

I would think in a normal world.. the seller will provide the buyer with all current deposits and any tenant that is not current will carry over to buyer and give them an option to evict or work out a plan..  But this will just be gravy and will not impact much with purchase price..

Also I understand in certain states there is a fine line on what you are allowed to do with tenant deposits..