I gave landlord half a months rent in advance believing that I was going to move in. it was not intended to be a holding deposit. The landlord was a friend of a friend and the apartment had been empty for over a year. I did not know that the landlord had been actively trying to rent out the apartment. I thought that I was sort of doing her a favor by giving her an opportunity to rent out the place. Well then I decided not to take the apartment and wanted my money back. I never signed a lease or set foot into the apartment. The landlord does not want to give me the money back because they said they had had to turn away potential tenants because the place had been rented. Here she had the place listed on craigslist. I honestly did not know. Who's right?

Legally she would win in court so she is right. When you give money down it is considered good faith money to hold the place and then when they turn down potential renters then it is just as they say.

No that was the first months rent, in fact they may be able to ask for the rest of the month payment. When you agreed to rent and paid part of the rent that was a verbal contact you can be held liable for it.