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Good Faith to Hold Apartment Refundable?- No lease yet - PA

2 joint tenants put a good faith deposit on an apartment and now one tenant does not want to move in. Stating he did not like the other tenants decision on taking the place. I have turned away other applicants, spent money for preparation and cleaning. I know in home purchase the good faith deposit is non refundable, and in any placed i have rented  myself the good faith was not refundable. I do have a document stating that this entire good faith is non refundable if they fail to take possession that I sent via email. Thoughts? Do I have to give it back? should I offer settlement of  deposit minus costs just to save the headache?
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A good faith deposit is basically a way for the tenants to  promise that the deal would not fall through. I do believe it is non refundable, due to tenants breaking their promise. They are basically kissing that money good bye! If the deal did not fall through and they rented than they would get that money back. Sorry you are going through that. I would just go with your gut. If you do not want to go through the courts make them a deal, or show them what it means to put down a good faith deposit.
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