on march 10th Paid $650 for apartment . never signed a lease decided didnt want apartment landlord kept my money and is taking me to court for more.

march 10th paid $325 security & $325 march rent due ti move in date of march 15th.Landlord gave me keys and said dont physically move in til the 15th. He also said he was going to carpet two rooms to let him know on March 12th which rooms we wanted carpeted.Less than 24hrs later informed him we didnt want apartment he said he was keeping $325 for his time.On March 12th told landlord if he repaired holes in walls,replaced bathroom floor due to hole in it and carpeted all three rooms instead of three we would rent it.Also that we would buy a new toilet and faucet for bathroom due to filth on ones there. he said he would buy toilet,faucet and do repairs if we paid another $325 security deposit.we agreed to when it was finished.However decided place was too small informed landlord on 14th we didnt want it, he kept our $650 and is suing us for another $2200, $1550 in repairs and $650 for april rent. Can he do this being we never moved in or signed a lease?