I call it a "Holding Deposit" and use a "Holding Agreement" to explain why I am taking the money, that it converts to the deposit when they move in, and that they will forfeit it if they change their mind or fail to start renting by the agreed date.

Yes, it gets returned to the person on the lease or it's forfeited.

Typically there will be a clause that states if you default or cannot fulfill the agreement the seller retains the property and you forfeit all monies

If they fail to perform the deposit is forfeit. 

Personally, my leases just state they forfeit their SD and owe 1 extra month of rent.

Through this process the deposit and the buyers premium become one and the same... and the auctioneer's fees are fully protected.In your case it sounds as though you're making a pre-auction offer, so it wouldn't make sense to make the deposit in stages... it would all be collected up front, and the auction company obtains the same security.Regarding purchaser default, yes the deposit would be forfeited.

Then the balance is due the next business day or you forfeit your $10k. 

I have had  many friends and clients forfeit paperwork, cards, documents and anything/everything to get their furry friends in hotels and apartments.

Please share your thoughtsIn the state of IL (Cook County) would a landlord be considered violating any tenant's rights by requesting established tenant(s) to undergo a new rental application process as if they're a prospective new tenant that will now determine if their lease will or will not be renewed with the possibility of forfeiting their security deposit?

If I'm doing the work, I want payment I made the assumption you had two actions going.. one by previous owner one by new owner. if as new owner you have to turn into collection agent then I agree I think old owner forfeits any rights to what ever you collect that's how i would view it as well.