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We'll see. I'm leaning towards getting a legal read on the situation from an attorney and as long as it's logical, I will let that guide my actions. I cannot afford to lose ~$6K I have tied up in earnest money for the new house, so I do have my fingers crossed.

Thanks for the reply and references. I have not been able to find any citation that says a signed lease is not valid until the tenant pays the deposit. Could you please point out that reference? I understand your points, but in a worst case scenario, let's say the landlord cannot find ANOTHER...

In case you misunderstood the situation, a new lease was signed by both the new tenant and the landlord. If you're implying that a new tenant with a new lease can break their lease at anytime (without negative consequence) and I (as the former tenant) would be the one responsible to cover the...