Q. We looked at an apartment, and the landlord told us it would not be available until the fifth of next month. The landlord collected a $100 application fee and one month's rent to hold the apartment. We did not sign a lease and we did not agree definitely to take the unit.

Thirty days in advance, we gave notice that we did not want the unit because there were two murders in the area just after we saw the place. The landlord told us that there was a $300 cancellation fee plus loss of the $100 application fee. We also would be charged a prorated amount for each day from the first month until the unit was rented. This is curious given that the unit will not be ready until the fifth. Can he really charge us $300 plus the other fees?

A. This is a perfect confluence of greed and innocence. This landlord is intent on keeping all the money you forked over, and you apparently trusted him.

Putting down a large deposit should be the last step after a thorough inspection of the unit, building, street and neighborhood. When you apply, be certain you want the apartment. Even as scary as are murders on the block, it is not sufficient to break a lease unless the landlord knew of the dangers in the neighborhood and deceptively did not tell you when you asked.

The written application must state your deposit can be kept if you decline to sign a lease when offered after approval. Also, if you submit a written withdrawal before you receive approval in writing, your advance and deposit monies should be promptly returned without strings or delay.

You applied for a year's written lease. Since you did not sign a lease, the landlord cannot charge you until he finds a replacement tenant. You have no further obligation than what is agreed in the application.

There are other ways to recover the deposit or cancel the lease. The Chicago Residential Landlord and Tenant Ordinance requires the security deposit received from a prospective tenant be immediately returned if a receipt is not issued on the spot. The leasing arrangement can be canceled under the ordinance if the landlord does not provide the prospective tenant with a Summary of the CRLTO when the lease is initially offered.

Send questions to mediator Ed Sacks at Apartment Watch, Homelife, Chicago Sun-Times, 350 N. Orleans, Chicago, IL 60654.