Option Money to the old owner?

[Jonathan Paul Shortt]

Purchased a property last year with a tenant in place and the tenant had a purchase option at the end of year one and again at the end of year two. The tenant is moving out and not exercising the purchase option. The option money was paid at the beginning of the lease, which if the option was exercised would have gone towards the purchase. They are not purchasing so monies returns to the owner. The property management company is telling me the money was given to the old owner... does this make sense? The option was transferred but the deposit was not? So if they exercised I would have owed them the deposit? Help is appreciated!