Legal Question in Legal Ethics in California

It should have been in your contract. If it was, tell them you will take them to small claims court over the breach of the contract. If it was not in your contract, the tenant has the right to collect any balance owed on the deposit from either you or the previous landlord, but if you wind up having to pay it, you would be able to sue the previous landlord for it. That really should have been a term of your escrow. Personally I would complain to your buyer's agent and his or her supervisor, and ask them to get it dealt with.

I agree with Mr. McCormick. This should have been a term in the purchase and sale contract and made part of escrow. Check your contract and the escrow instructions.