So yes it does depend on the location, I am in Central Florida average deposit is $1,000 most of the time I will not dispute it with them because once I assign the contract that deposit is no longer my problem.

I believe that in most legal disputes with tenants or buyers/sellers, I do not have to go to court and can instead be represented by a lawyer.

However, an attorney need not be physically present at the closing (2002 Formal Ethics Opinion 9 (02 FEO 9)).The North Carolina State Bar determined that a non-attorney is engaged in unauthorized practice of law if performing various functions related to a residential real estate closing, including, among others: (1) providing an opinion as to title of real property, (2) explaining the legal status of title to real property, (3) giving advice about the parties' rights and responsibilities concerning matters disclosed by a land survey, (4) providing opinions or advice regarding the parties' legal rights and obligations, (5) advising parties with respect to alternative ways for taking title to the property, (6) drafting legal documents, (7) recommending a course of action to a party under circumstances that require the exercise of legal judgment, and (8) attempting to settle a dispute between the parties that will have implications with respect to their legal rights or obligations (APAO 2002-1).However, a nonlawyer may: (1) present and identify the documents necessary to complete a residential real estate closing, direct the parties where to sign the documents, and ensure that the parties have properly executed the documents and (2) receive and disburse the closing funds.

Here in FL there is an advantage to having the RM with a broker as opposed to being with a title co.....in the event of a dispute, the broker has more latitude. 

The seller could dispute that you did not close in good faith and win your deposit after all.

I also don't look at their credit because I know people who pay their rent on time every month, but have bad credit because they had a dispute with a creditor.

In both of my cases the heirs were interested in a quick resolution as then they could get their share of the proceeds.If it drags out a bit in probate they will still know of your interest...and you could remind them occasionally and keep the door open. 

Pull recent reports and dispute discrepancies and try to settle accounts in bad standing.2.

If the borrower defaults you may have a more involved resolution above simply eviction but in this case I would consider that.  

+++++++++++++++As a consumer: The consumer must notify their financial institution within 60 days of the sending of the first statement that includes the disputed transaction.