Do I forfeit my deposit based on the clause?

At that point, they forfeited their right to life and they got EXACTLY what they deserved.

In theory, you could forfeit your business assets to the plaintiff, say $500k in the property itself, and be done, as that is all the assets in the LLC.

I know I would forfeit $300 to keep good tenants another year versus all the work to lease up a unit all over again. 

Your objection must be sent to (landlord’s address) .If the landlord fails to give the required notice within the 30-day period, he or she forfeits the right to impose a claim upon the security deposit and may not seek a setoff against the deposit but may file an action for damages after return of the deposit.

The tenant usually has to put down a big deposit or down payment as well which they may forfeit if they don’t exercise their right to purchase at the end of the lease.

HUD will forfeit your deposit immediately if you fail to close -- title will be required to disburse it upon demand by HUD alone. 

I have a friend who is bankrupted, his 3 room appartment forfeit by bank.

I would think they should have to forfeit their deposit or something.

A couple banks have a very tight addendum that basically says, "At our discretion, we can take as long as we need to get clear title and close this deal, and you either need to wait or forfeit your earnest money."