I don't want to forfeit my $10k down payment.Please Help!!!

I also recommend developing a policy that says they automatically forfeit the deposit if they terminate prior to occupancy.

If you don't follow the rules right, you could forfeit the right to be paid anything at all.https://www.biggerpockets.com/blogs/6547/68021-alabama-tax-sale-investors-and-improvements-protect-your-rights

Failure to do so could invalidate your lien and also forfeit your funds.

I would put it this way: they can terminate, forfeit the money paid, and walk away.

If the winning bidder does not pay within the prescribed period, the good faith deposit will be forfeited pursuant to Florida Statute 45.031(2).

I still have their deposit so I also want to know if I have to notify them that they forfeited their deposit.

I am trying to stay out of the tribunal and out of court.I have heard stories that we are not allowed to collect a credit payment and not allowed to have the tenant forfeit any payment and if they don't go through with the purchase you need to pay everything back .

Both of which are forfeited in the event of a default.

@Allan Smith the security deposit is forfeited, as per our lease, for any lease violations.