Hi all,

My boyfriend and I are moving to San Francisco, and we found what we thought would be the perfect place after a week of looking. He visited the apartment in person, I was unable to take the time off work, so stayed and packed. We both agreed when our application was approved that it would be a good option. Before we found out about any of our other applications, we sent in a holding deposit equal to the total amount of the security deposit for the apartment. The understanding was when we move in, the holding deposit will count towards the deposit.

We have not yet signed a lease, nor paid the first month's rent. My boyfriend, who has been dealing with the rental company, rather stupidly did not inquire what portion of the holding deposit is refundable.

We just found out that we were approved for a cheaper, larger, nicer apartment that we didn't think we would qualify for. We'd like to take it.

Since we haven't signed a lease, are we still liable for the first month's rent? What are our obligations to this landlord? How much of the holding deposit can he retain? What must be refunded, and on what deadlines? Are we in a stronger position because we have not signed the lease, nor taken up residence in the apartment? Will we have to sue in small claims court to get anything back? Since the holding deposit was so big,
we need as much of it as possible to make a deposit on the other place, if we can.

IF we have to, we can take this place, it's just that for a variety of reasons, our other option would be better. It was silly of both of us to be so hasty in sending the deposit -- but SF is a tough rental market, and the rental company said we might lose the apartment if we didn't send the deposit immediately.

Thanks for your help.