However, NJ law states that the landlord has up to 30 days to refund the amount, so I should be able to exercise that right.

A 2 year lease agreement and an Option to Buy that expires in 2 years.When Person C decides to exercise their right to purchase from Person B at the end of 2 years..You do what's called a double closingPerson B buys from Person APerson B Sales to Person C hopefully for more than what he bought from Person A, thus pocketing a profit.

The examples above are rather necessary but there are times when they aren't and the owner can exercise their discretion. 

If you still don’t know after this exercise i would advise against finishing it.

Say the tenant/buyer decides to exercise their option and buy.

You do need to exercise some care to comply with SAFE act though.But of course, they are buyers, so they aren't renting :wink:

No actual cash is involved at that point.And, as Bill suggested, you and your tenant buyer should be working with a mortgage pro on arranging the financing in order to exercise the option.

The last week has been depressing as we went through a prelim exercise to understand our tax situation.

Here it is for you, I thought it would be interesting to hear what you first thought was, honestly:Q: An Option once exercised is considered:1: Unilateral executed2: Bilateral executory3: Unilateral executory4: Bilateral executedThere is 1 single answer so none of that 'depends' stuff.

Or for wholesaling to a rental landlord, sell it lease option, with an exercise date 90 days in future, so basiclly a delayed closing.Keep it simple.