although I jumped in not know that they would try and cash my deposit check having a very good understand of principles, law and finance is paramount to success.  

People are very wary of being scammed so they're reluctant to put down a deposit when they can't even see what the furnished unit is going to look like. 3/1's can be hard to rent as MTRs.

Few more points:Their lease is valid till May 2025.This is the first time she even told me about mold.In the email she did ask me to settle the lease.I have a little less than a month of rent as security deposit, which I am ready to settle without any additional penalties for abandoning the property.At this point I am okay with her leaving the place, just I want to get the control of the property back to fix the mold issue.History:1) Recently the AC has been replaced and after that there was some intermittent issue with the installation (temp doesn’t reach target intermittently) and I had to call the tech back 5 times to finally get it resolved.2) Also last month I replaced electric range with Brand new Electric range.3) Two months back she said the refrigerator was leaking, I asked her to send picture of the make and mode of the refrigerator, but I never got a reply back.4) Also for last 4-5 months she has been asking me to send her 5-day notice so that she can claim reimbursement, I was sharing a document and she was paying the rent a little late.

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Please help me out if I could deduct the followings from the security deposit :1.

Since my father passed away unexpectedly, i do not have cash in hand for the deposit.

This way if the tenant comes back and argues a deposit or lease amount, you or the tenant has some recourse against the seller.

@Steve Vaughan haha good one ;) and I am hoping to create some sort of application process and take a small deposit, even though they are week to week.

Keep a larger security deposit and demand that the property be delivered back in perfect shape.7.  

They may "forget" to tell you that the tenant paid a double deposit, and then not transfer that deposit to you at closing.Your offer to purchase should include a requirement that the Seller provide all documentation and agree to sign an estoppel certificate (also called an estoppel form or agreement).