Under New York law, landlords have 14 days after the tenant vacates the property to either return the full security deposit or provide an itemized statement indicating any deductions made from the deposit.If the landlord deducts any expenses from the security deposit, they must provide the tenant with an itemized list detailing each deduction and the corresponding cost.

security deposit are the tenants, not the owners.

Keep their deposit and take them to small claims for the rest of it.

What is a reasonable Pet Deposit and Pet Rent for a well trained dog of 50Lbs in San Diego?

If this is the case, your seller should want to release the Earnest Deposit.

The security deposit would be applied to any monies owed and a letter would be sent within 30 days to the tenant. 

@Mike Dumont so apart from some correspondence detailing how the funds would be handled, I would do the following.Colorado law gives the landlord 30 days to return a security deposit.

You will receive the security deposit in Checking but then transfer it to Savings.

First of all- the security deposit isn't "yours," but it isn't the PMs, either.

Let them pay the deposit with a credit card.