You are hoping that someone will forfeit their $120,000 of equity?

I sweetened a bit by adding a return of $50/month of the rent applied toward the purchase if it takes place within the 2 years.The caveat is if you do not exercise the option it expired and you forfeit the $2000.

The misapplication of escrow accounts or escrowed funds by a licensened property manager can be grounds for the suspension or revocation of thier license.Which means, it ain't your money to spend until the deposit is forfeited as agreed by contract and as allowed by state law :)

I agree with the others, the EM gets forfeited by the buyer if they walk.

With the lease-option, all funds that are paid are forfeited, but if the buyer does exercise the option, they just take it on as equity correct?

If a buyer does not perform and close, they forfeit their EMD.

Bobby Walters Hopefully your deposit receipt has a forfeit clause in it.

Since you removed the financing contingency, your deposit IS forfeited if you don't close on time, assuming the sellers can perform on their end.

I typically have a receipt of security deposit that is signed by both parties that includes the understanding that if the potential tenant does not take possession on the move in date the security deposit is forfeited. 

Is there any other recourse other than him forfeiting his security deposit?