Like UCGal, I am not familiar with recent CA laws. However, when I was living in central CA back in the mid-80s, I went through a situation similar to yours (job transfer), and the landlord demanded all of the rent owed on the balance of the lease. We were fortunate: my husband’s employer paid all of the remaining 10 months rent, without question. However, the landlord, even though he was being a shit, was on sound legal ground based on the written and signed lease. A written lease will almost always trump undocumented verbal agreements.

Also similar to UCGal’s experience, I had a lease dispute in Pennsylvania in the late 90s. I was able to break my lease, without notice, because of a loophole a mile wide that the landlord had missed (I left the apartment because it had flooded badly three times within a three-week period; the lease stated that I could leave at my convenience, without notice, if the premises became inhabitable). Despite the fact that he did not have a legal leg on which to stand, and would almost certainly have had a judgement against him of double the amount of the deposit, he made me take him to court for the deposit. On the morning, and at the location, of the hearing, his lawyer settled out of court, giving me a check in the amount of my deposit.

So while it is possible that your landlord is stringing you along, hoping that you won’t call his bluff and go after him in court (like mine obviously did), the likelihood is that he realizes that the law favors him in this situation. You can decide if you want to take a chance in court, but depending upon the laws in your area, you may end up paying his court costs and additional penalties if you lose your case. It’s probably worth contacting your local Fair Housing agency to see if you have any recourse, but unless things are clearly stacked in your favor, I’d chalk it up to (bad) experience, and concentrate on enjoying your new home.

Would you feel comfortable asking your employer to cover part, or all, of the deposit? If that’s not feasible, you might want to check into whether it will be deductible on your income tax return (job-related moving expenses). With the mortgage interest you’ll be able to deduct this year, and a possible homebuyer credit, you have the potential for a sizeable refund.