Renter blues

What is the name of your state? What is the name of your state? North Carolina

Recently I decided to rent a home. The former rentees moved out on the 26th of July. I viewed the home the same day. After being promised that the house would be throughly repaired I agreed to put down the deposit. I paid a 500.00 deposit on th 27th of July, I signed no agreement, in fact I didn't sign anything. I orginally found out about the home from the actual man who wanted to rent it to me because I looked at another one of his homes, but from what I could tell no other efforts had been made for the home to be rented, no for rent sign, no listing in the paper. On the 6th of August I went into the house to show my mother the home I would be renting, to our dismay nothing had been started as far as repairing the home and she assured me that for what the home had to offer I would be paying entirely too much. I called the man I paid the deposit to and told him I was no longer interested in renting the place and that I wished for my deposit back. The man refused saying that he had lost several clients who were interested in the home because I said I would rent it. The man says that there should'nt be a problem in renting the home again but refuses to return my deposit until he re-rents. Is this legal? Does he have a right to the money for a home I never rented?