Legal question-Real estate company keeping deposit?

If you were really that uncertain you could have asked for a copy of the lease but not put down a deposit. Sure they likely had no loses, but legally they still have rights to the money. Good luck with the lawyer. You could easily end up paying $500 to recover your $250.

The property management company took the house off the market and was holding it for you. Since you decided against signing the lease, you are not entitled to the money back. That is their compensation for losing other tenants.

Did they give you a receipt for the $250 and call it a "holding deposit" with terms stating you would forfeit the deposit if you didn't sign a lease by XXX date? Then unlikely they could keep the entire amt. in my state [CA] since it was given as part of and presumably would become a credit to the rent/cleaning/damage security deposit. To me the key is what they called it. Since you hadn't signed a rental contract they had no reason for security in that sense. It was a deposit to hold the unit. A fall-back would be to agree to let them keep say $50 and refund $200 to be done with it. Lawyers only screw things like this up and you will pay more in fees than it is worth so negotiate. After that if it doesn't work go to small claims court or justice court, whichever it is called in your state. Skip the lawyer and roll the dice for $250.

It doesn't matter if it was 24 hours or 24 minutes. They took it off the market on the assumption you would take it. Therefore, they potentially turn away other tenants. Never put down money until you are sure you will take a place. Unless you sign something saying otherwise, pre-paid monies are non-refundable if you change your mind about renting.

LIFE LESSON: Never put down a deposit unless you plan to follow through with the agreement or you don't mind giving up the entire deposit for not following through.