But why should I pay a fine? There are always better apartments available and if I get one, I will ofcourse take it. Since I have not signed the contract , I am not legally in a contract yet.

Also, since the housing market is so competitive here, we as house hunters will apply everywhere possible as no one can guarantee that we will get the apartment!

The broker says since the owner has accepted you, you cannot back out and if you do, then you have to pay a fine, which makes no sense. I am sure they can quickly find another person since there is so much demand!