I did not read the rules around security deposits. you may be allowed to use those funds and still file a small claims action for any remainder, but I can't imagine that it would be worth it if you have at least one month's rent in security deposit. 

Earnest Money Deposit 3. 

Most of the time the tenants are responsible for the deposit.

A larger refundable deposit? 

It doesn’t have to be occupied by tenants, just a signed lease + deposit.

The vast majority of lawsuits against landlords involve wrongful eviction, security deposit disputes, and Fair Housing Violations.

So you could open an account here to make quick deposits?

So it is really looking more at bank deposits, but most mom and pop owners won't share bank statements.  

Did you collect and keep an earnest money deposit from that buyer?

I've had one tenant in all my years dispute the deposit itemization.