Recently I have gotten an offer from a potential tenant. I noted that if I refused to sign the rental agreement at the last moment, I have to return the earnest deposit (1 month) and pay another 1 month deposit to the tenant. Just wanna ask if this is standard market practice ?

Compensation is fine. The thing is that the tenant want to replace most furnitures and they add in a clause saying that if there are defects during handover , they can choose not to proceed. If that happens, who is going to compensate me for the incurred costs ?