The earnest money would only be forfeited after signing the docusign contract. 

If you don't find someone to move in until October 15th, then you deduct a prorated rent for October 1 - 15 and refund the remainder.Personally, my agreement says they forfeit the entire Holding Deposit if they back out.

We got it under contract for 110k and the current value is 150k as is and it’s rent ready.I’m curious to know if we should just walk away and forfeit the EMD or maybe try to find another end buyer.

It is NEVER a defense to say you told them, or of course they knew why they weren't getting it, or a lease clause said they forfeited it for early termination.

You can also give them a third option which is for them to move out in less than 30 days, forfeit the deposit, and everyone moves on.If they're making this up, which I suspect they are, they will likely take the latter option.

Since I did not discover this during my due diligence period, am I legally obligated to still forfeit my EMD if I back out?

Can the Lease Termination agreement have a clause that says that their deposits can be forfeited BEFORE they actually move in?

If the assignee fails to close, that deposit is often forfeited to the assignor.

Beware that you will forfeit this payment if you end up not being able to purchase the house.

If you don't pay the next day, you forfeit the money you used to bid in the auction.I have won county auctions, only to have the person being foreclosed upon declare bankruptcy the same day as the sale.