I prefer to list washer/dryer/refrigerator as items the landlord will not repair.They are working when they take possession, if my client wants to include them.  

That is more into the Lease-Option method and then you are kinda like an Agent without a license and really possessing for up to a year to resell the property or arrange financing to keep it.

As it stands right now, the contractor is "unjustly enriched" (term of art) because they have possession of money that they haven't done any services for yet.

Once we were notified the attorney sent his notice, we scheduled an inspection for today 3/26/18 to verify if the tenant was still in possession.

.§7-2 The Property Manager shall not perform and shall not represent that he or she can or will perform services outside of his or her area of expertise, particularly services that require a separate license or qualification – such as law, accounting, financial planning, construction, and/or contracting – unless the Property Manager independently possesses such license or qualification.Article 8: COMMITMENT TO FIRMThe Property Manager shall act in the best interests of his or her property management Firm.STANDARDS OF PROFESSIONALISM§8-1 The Property Manager shall not have any undisclosed conflict of interest with his or her Firm.

If the original tenant's lease was over, and he gave back possession (returned keys), it would seem to me he is off the hook. 

If your closing is far enough in the distance they might be out by the time you take possession.

Imagine the background check coming back with:"a lengthy criminal record with prior arrests on allegations of assault, disorderly conduct, destruction of property, resisting arrest, theft, public intoxication, and possession of marijuana"I've applied for CCW.

New lease are in the tenants possession that state we will be installing sub water meters, and billing for the utilities monthly. 

@Vincent Ponte vacant possession with a hold back of $xx,xxx (make this a painfully large number, but the larger this number the larger the deposit I would suggest) to be credited 100% to the buyer if house is not provided with vacant possession.