Does the landlord have the right to keep the money I've given them (rent & security deposit) if I signed the lease but never moved into the apartment?

I signed a lease and handed over the security deposit and first month's rent for an apartment but shortly after (that day and the following day) I found peeling paint, lifting floors, etc. in the apartment. I informed the landlord that I'd decided not to move in until these issues were fixed and then later decided not to move in at all. I never moved myself or any of my things into the apartment. The management staff has told me that signing the lease means that I moved in so I can buy out my lease for 2 months' rent or be responsible for the rent until a new tenant can be found. Basically, they want to keep the money that I gave them. I guess I'm wondering if they can force me into one of these options since I signed the lease but never moved in. Do I have any grounds for getting my money back?