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Security Deposit Given But now she wants out?

We took a security deposit (400) out of 1,150 on good faith on Saturday.  The prospect was emailing the application over and after numerous conversations, we were for sure she was going to rent to us.  Well, today we get an email she chose another place and we have already taken down all the signs, removed all postings and cancelled another viewing.  I feel dupped!  Can I keep her "good faith" deposit, with all the trouble she has caused?  Nothing has been signed and we live 1 1/2 hours away from the property.  Thank you for any help.
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I would imagine that if you had at least verbalized to this tenant, that the deposit was a goo faith and non-refundable, that you could do this. but ultimately if she wants to fight it and takes you to court, it would probably be up to a judge to make the decision. If nothing else, learn from this and ALWAYS get it in writing.
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