Simply keep the deposit, send them a bill for breaking the lease and outlining that you took it out of the deposit.You can't keep the deposit because they break the lease. 

Typically the note will outline the terms and is generally one page. 

Hey Jahbari, it sounds like you're referring to a subject-to deal? 

Properties are sold "as is, where is, subject to any senior liens or other legal matters".

The specifics on the value of the complex is the subject of another post.

(Just curious, I don't wholesale so I am uninformed on the subject.) 

I know this is a passionate subject

I bought Brandon's book on Investing in RE with no (or low) money where he outlines a similar scenario to the above where a person gets started in RE investing by getting an FHA/low interest loan on a property that needs to light rehab.

Would prefer to be closer to Franklin but we're subject to our pricepoint right now.

Regardless if the contract is a standard Realtor contract or a builder specific contract, there are usually a few clauses in the contract outlining scenarios when the earnest funds can be returned.