An alternative is to get them to agree to mediation / arbitration but it sounds like she just doesn't want to sell anymore.The language in the paragraph you copied basically makes repair of any 'violations' a condition of the sale and contemplates three options; 1) The seller repairs violations2) The contract is canceled with refund of deposit and specific expenses3) Contract if fulfilled with a $500 abatement in price for non-repaired violations (I assume you sent the requisite notice for this option)From what little I know, specific performance is difficult to win.

The response was that they can deposit it by the 15th at the earliest to allow the check to clear. 

I sent the paperwork as well as the earnest money deposits for both properties to the title company set to close on June 1st.However, I don't think I will move forward with one of the properties but I would like to purchase the other for myself.

We use the bank ACH linkage to provide the escrow with the proper source of funds.From the Texas Securities Board:Payments received from investors for the purchase of securities (investment commitments) must be directed to and deposited in an escrow account with a bank or other depository institution located in Texas.

If you catch the deposit into your account you can send the tenant a check for the same amount as the deposit via certified letter along with a letter stating you are not accepting his deposit.

I already have the info from the Treasurer's office on registration and depositing funds into their trust account, but am looking for more info on the actual auction from someone who may have attended. 

Lease expired and they never even gave a security deposit.

I got a tenant approved, deposit was paid, and all looked good.

Would it be possible to return their security deposit and sign someone else since the new lease doesn't start until August?

Explain they aren't paying 4 separate security deposits too,  I don't care about getting 4 checks I just tell them the deposit is for all damages and if one moves out they need to settle the damages among themselves.