A final settlement statement should be agreed upon to ensure no discrepancies.This process ensures that the transition is efficient, minimizes disruption for tenants, and allows you to take over the management of the units with all the necessary information at hand.I hope this helps, and best of luck with the transition!

I've tried fighting it over the years and even offered a settlement but I wasn't paying the amount they suggested for a home that they knew I didn't live in nor signed a lease to be in.I wanted to disclose this information to you beforehand being as though everything else will check out.

They do have income, but credit was damaged due to medical problems which resulted in a settlement, this providing them with the ability to pay a substantial amount in advance (19K).

I think the agent is being short sited in not negotiating a settlement to satisfy both sides of this. 

Then I'd get them to sign the agreement, and make sure it says it's a settlement agreement and the tenant is waiving any rights to the normal security deposit timelines, etc., to avoid eviction and a court record, etc.

Here is a case from the HUD website from 2013 for a Virginia company that had to pay a $82,500 settlement because they refused to rent to a Hispanic woman who didn't speak English.The Fair Housing Act prohibits discrimination in the rental of housing on the basis of national origin.

Does the bond she paid go to you as part of the settlement if you win?

dont go to settlement until the house is empty , let the seller deal with it 

If no settlement is reached at that mandatory mediation, DFEH could choose to file suit.  

This action is deliberate bad faith because it limits the escrowed amount agreed contractually and intended as security against damages.Good luck collecting it, because even if you win the judgement there's no way to enforce payment except through credit reporting and the possibility of settlement to clear the reported bad debt.