More than likely the unit is a illegal apartment and not zoned for two. It would have been better for the landlord to include the utilities and charge you more rent than to have lied to you. Yes, it seems you may have grounds to break the lease. If you attempt to do so you could sue the landlord for your moving expenses and any other expenses incurred in finding a new place. Consult an attorney abut the lease or just go to landlord and tenant's court if the landlord will not give you a written release, refund your deposit, and pay your moving expenses.
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