No right to secede -- question was settled by the Civil War.

(I studied civil engineering too...

Such a thing doesn't exist, but the lack of litigation of it doesn't mean it's not risky.Non-refundable deposit is like diet bacon...call it whatever you like, such a thing doesn't exist...by definition.Rather, what you do is charge a Holding FEE. 

If we change the ownership to condos we believe we will be taxes closer to a multifamily project which could save a lot of money in property taxes each year.I am waiting to hear back from my civil engineer on his experiences with condo development in this town and our area.

Developers that do not have in house design staff will hire a civil engineer to do a feasibility studies and rough sketch site plans. 

California law (Ca Civil Code 1950.5) requires landlords to furnish tenants an itemized list of security deposit deductions no later than 21 days either by personal delivery or by first-class mail (unless the tenant previously agreed to let you provide it to him by email). 

Beats chasing them down for past due rent, where you’ll probably spend more in litigation.

Lot's of these arrangements end up falling out of contract without 2 agents involved to keep the deal alive, and a high percentage end up in litigation also.

Condo conversions (locally) have different rules in some cases to ease up on things that have changed over the years and an older building may not be able to comply with.If you want someone to talk to about the process there I would suggest a good land use Civil....they should know the process and be able to tell you sticking points if any.

I live in the Los Angeles area and the attorneys I look seem to major in litigation and personal injury.