I'm purchasing a property from a seller with a Maryland LLC that was forfeited in 2016. 

We have to move early as my fiancee is acquiring her father's business earlier than discussed due to health reasons.I reached out to the PM a week ago as I wanted to give ample notice (Approx 7 months from lease expiration).Being that we are moving half way across the world and had planned to save for 7 more months, we are a bit tight on funds and were wondering if we forfeited our security deposit (less any deductions), could it apply toward the early termination fee?

Chances are they aren't going to be happy with anything that happens other than you forfeiting value and cash flow entirely, so do what you decide is right for your situation and look forward instead of back.

Plus, they are much more likely to treat the property as their home so it shouldn't be as bad if you have to take it back.If they don't pay their monthly obligation to you they forfeit the deposit and you can evict them.

Also make sure you comply with your local security deposit rules otherwise you could forfeit your security deposit and end up owing your tenant attorneys fees. 

WA has a modified CFD called a Real Estate Contract.  90 day notice to cure or forfeit. 

The purchase price is set slightly higher than market valueInterest rate on "Loan" is usually higher than bank interest rateTaxes and Insurance are paid by the buyer.All repairs/maintenance are paid by the buyer.If the buyer can't secure a mortgage by the end of the agreement, buyer will forfeit the down payment + any principal repayments.Your monthly "rent" consists only of PITI.The Seller cannot take depreciation deduction or interest expense deduction on the property as the property's title is no longer with the seller upon signing the land contract.Lease Option:The buyer pays an option fee upfront (how much is this usually?).

Do they forfeIt the deposIt if they dont buy the property?

They cannot apply their deposit to the Fee, but neither do they forfeit their deposit.I am almost always able to find a new tenant within 6 weeks of move out. 

Essential he would be forfeiting his deposit.