It sounds to me like a misunderstanding. 

Vocabulary and a misunderstanding of the differences between residential and commercial residential are the fastest ways to lose credibility.

To do otherwise is to misunderstand the nature of eviction.By the time I get to eviction the tenant's self-destructive behavior has put her or him well past the value of any help I could offer.

Unless I'm misunderstanding the question.

I think you might be misunderstanding some laws. 

I'm not sure what the rule is under New Jersey law, but either way I would make sure that the real estate contract expressly states what is going to happen with the security deposit so that there is no misunderstanding between buyer and seller.

Both at the same time if you can get on a conference call there will be less room for misunderstanding

Not sure if I'm misunderstanding what I'm hearing from people but it sounds like doing a lease option / rent to own deal eliminates closing costs somehow.

I have also seen people misunderstand the PM and think the $100 flat rate is for the entire building when it actually means each unit.

If there is a true misunderstanding in the rent rate, think about being flexible and giving them a (proper) rent increase notice to what the other side is paying.