Rent deposit is this really legal?

We were going to rent a house on 1/10/11 we were shown the home he told us the house had not closed escrow but it will on 2/1/11 we did not fill out a rental agreement and credit check app. was never returned the only papers is a cash receipt for the the money on 1/26/11 we told him that we where going to stay in our old home now he says that he is going to keep our money but the house at that time was not legally his, Recourse please?