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'forfeit the deposit' is a perfectly correct and usable phrase in written English.
You would usually use it when talking about a deposit that has been forfeited, or lost, due to a breach of contract or other reason. For example: "If the rental agreement is not followed, the tenant may forfeit the deposit."
Exact(4)
If you withdraw from the sale, you forfeit the deposit.
If they still fail to rein in spending, they will forfeit the deposit.
At the same time, he said, most contracts do specify that if the buyer backs out of the deal, he or she will forfeit the deposit made when the contract is signed, usually 10percentt of the purchase price.
House rules – the usual, no alcohol, no talking after 9pm, lights off at 10pm or you forfeit the deposit, hot water's on for an hour from 3am, additional times by arrangement, breakfast between 6.45 and 7am, the tray will be on the stairs – you're welcome to go into the kitchen, but it's very much Caesar's space.
Similar(54)
"If the borrower walks away from the deal, he forfeits the deposit.
As he has scaled back his company's plans, he has been forced to cancel some orders for wind turbines, forfeiting the deposit.
They did not want to lose their homes or to forfeit the substantial deposit they had had to find.
"In no event should the board forfeit the $5,000 deposit or agree to waive interest on it or the money advanced for the project," Mr. Greenstein said.
One Lebanese man said he was willing to forfeit the $15,000 deposit he put on a new home before Sept. 11 in order to leave.
An airline is usually able to walk away from an option deal if it forfeits the modest deposit paid.
If you deposit more than you spend on qualified expenses in your account, you forfeit the unused funds.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com