You are not responsible for normal wear and tear. Your deposit was required to be returned to you within 21 days of your departure under Civil Code Section 1950.5. Any deductions from the deposit had to be supported by receipts for the charges.
Demand written validation of debt under Section 809 of the Fair Debt Collection Practices Act.
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No, you should not have to pay for painting of you have lived in the apartment for two years (unless of course, you punched holes in the walls and caused other types of damages, separate and apart from simply paint).
Shoudl the former landlord sue you for the $762, you should bring a counterclaim for return of your security deposit. See:Ask a similar question