There are some important time limits regarding notices and referees, or you will forfeit the right to collect for those things.  

Obviously, that will come out of her security deposit but with her smoking in the property and breaking the lease a month into it even though we both signed to break the lease, would she also forfeit the other $300 in her deposit?

So, you would put up and asset as collateral that can be forfeited if you stop making payments on the loan.

If the guest cancels within 60 days, they forfeit all advance payments.

It states on that agreement that failure to sign a lease and take possession will result in forfeit of deposit.

Or buyer will forfeit $5,000 EMD if they back out, or buyer will pay for up to $5,000 in sellers moving costs.

One thing I can say is if it does not feel right, it might be better forfeiting the escrow than taking on a money pit. 

If they fail to comply, the holding deposit is forfeited.

Some say the security deposit has been forfeited due to technically abandoning the place and some say I would still have to return what’s left to him.

In the event Tenant fails to occupy the home as agreed or otherwise defaults in the terms of this Agreement, the deposit and all associated fees shall be forfeited to American West Realty and Management.If they show up and don't like the rental, then I keep the deposit, terminate their lease, and find someone else.