Legal Question in Real Estate Law in California

It depends on the agreement with the landlord and the underlying facts.

A holding deposit is a deposit to hold the rental unit for a stated period of time until the tenant pays the first month's rent and any security deposit. The landlord is supposed to agree not to rent the unit to anyone else. If the tenant changes his or her mind about moving in, the landlord may keep some of the deposit to cover their damages for the tenant's change of mind.

None of this makes sense if the landlord is a potential buyer, but does not have title to the place you are not renting. There is no reason to "hold" something that is not owned.