My situation is a little different. We went through a broker who was working for both us and the landlords trying to rent their home, which they had not been able to do for quite some time. We paid our app fee and waited to see if we were accepted. They found out we had great credit and a SUPERB reference from our current landlords. We were told that we would have to pay $1000 down as part of the security deposit to hold it for us and then pay the first months rent and the remainder $400 of the security deposit when we moved in. HOWEVER... after we sent that $1000, the landlords decided because our income was just under the normal 3x's the monthly rent, they wanted another months security. We decided that this apartment would not work for us, and chose to look else where. The "pre-lease", which was not signed, clearly states that we paid the landlord this REFUNDABLE $1000 as a SECURITY DEPOSIT, not a HOLDING FEE. Now, they are telling us that the money we paid was NON-REFUNDABLE. I believe we have right to demand that money back, yes?

First its not a good idea to piggyback your question on another thread. This can lead to confusion. So I've moved your question to its own thread.

If what you signed states its refundable PLUS the landlord's changed the terms after payment, yes, it would seem you are due this money back. You may have to sue, however, to get it back.