If they come through then the hold deposit is converted to Security Deposit but if they fall through then the Hold Deposit is forfeited, non-refundable.

Most cases you forfeit your EM if you don’t close.

I suspect the above notice was never provided, meaning the tenant may sue you and the well known company as a co-defendant for the return of the deposit, or you may have a third party complaint against the well known company, if the well known company is not named as a defendant in the initial lawsuit. 

a, you can make high % returns, b. you make returns from taking people's earnest money and forfeiting their purchase 

I would forfeit the funds and you retain the property if I don't complete the transaction.

However, that would mean he would forfeit his security deposit.

The lease states "The tenants will forfeit the security deposit if they vacate the premises prior to the full term of the lease expiring". 

Breaking the lease = forfeiting the deposit. 

They both insist that there are creative ways to structure this deal so that me and my mother can LEGALLY , and secured by CONRACT, be able to collect the net proceeds, and split it 50/50 as her and I agreed from the start.One of the proposed arrangements I researched and sought legal consul for, and am fairly certain would in fact still be an act of fraud.A broker brought in an investor who proposed the idea of purchasing the Mortgage Note, and giving us the difference, secured of course in advance by a contract where we would agree to forfeit the Security(house) once the note was purchased. 

At this point the asset manager wants a decision today weather are not I am committed to next Fridays closing date, if I am and I do not close I will forfeit my earnest deposit.