I was interested in a house for rent and the owner said that if I give him a deposit (amounting to $3500) he would not show the house to anyone else. Move-in would have been in 2 weeks. But 3 days later, 2 people who I was supposed to rent the house with backed out. Of course, I could not cover the monthly rental anymore so I called the owner to tell him I wasn't renting. There was no lease agreement signed yet, but I had a stop payment put on the check. After explaining my whole situation to him, he is now demanding that I owe him $3500. Is he entitled to the whole amount? By the way, I live in California.