@Kendall Chamberlain I have a "Non-refundable Deposit to Hold" form that specifically states that it is a deposit to hold for a specific amount of time, and should they not follow through and sign the lease/take occupancy, they forfeit the deposit.I would suggest returning the deposit, unless you spelled out in your verbal agreement that it was non-refundable.

Oh, and do use the entire state spelling. 

Your operating agreement would spell out your responsibilities and split.

That is what I prefer, because I believe it appears the most fair.Have an approval letter with deposit to hold requirements spelled out.

@Steve K. they didn't even spell "discriminate" right, so that right there.....

You just need to spell out who gets what from whom, what the equity split is, roles and responsibilities, decision making, buyout options, capital calls, etc.Any lawyer will be able to write this up for you so everyone is covered. 

But, spell out for them.

But these things need to be spelled out in your lease before hand.

Also possible is it is a weird street like South st or North street or second street or meadow view but one word instead of two, aan abbreviated direction, a spelled out number something like that. 

This is all spelled out in a JV agreement.