Security Deposits and Post-Dated cheques: Do I Need to Provide Them? - Schwarz Law LLP |
I have a tenant who unexpectedly sent me the next three rent payments with post dated checks. Apparently she will be traveling a lot and didn't want to forget to. Originally Posted by TheBrit I wouldn't be keen personally, as it points to potential problems with the landlord down the road. What is the rule regarding writing post-dated future cheques? Does this mean the check writer must have a minimum amount that exists in.
However, it is illegal for a landlord in Ontario to demand a security deposit, for potential damages to a rental unit . Due to this, many landlords have tried to use creative ways to come up with charges to get around the rule for security deposits.
Can I Accept a Post Dated Check From a Tenant? | Home Guides | SF Gate
However, the Ontario Residential Tenancies Act prohibits any other additional charges . Your landlord cannot directly or indirectly require or attempt to require from a tenant any fee or deposit of this nature. In British Columbia, the rules are different.
A security deposit can be demanded. If a landlord accepts a security deposit that is greater than this amount, you have the right as a tenant to deduct the overpayment from your next rent payment or recover your overpaid rent.
A landlord may also demand a pet damage deposit which would cover damages to the property caused by your pet. Post-Date Cheques This will also vary from province to province. A post-dated cheque is a cheque that is dated for a future date. In the context of landlord and tenants, it is usually a cheque dated for the day rent is due for the remainder of the tenancy agreement.Why you should never issue a post-dated check
The reason for post-dated cheques is that a cheque will be incapable of being cashed until the date of the cheque. This is convenient for both the landlord and the tenant.
The landlord will not have to hound the tenant for cheques every month and tenant will get the benefit of post-dating, namely, the landlord will be prevented from depositing all the cheques at once.
However, in practice, sometimes things do not go as smoothly. These causes issues as the bank may hit you with fees should your account have insufficient funds and go into overdraft. This is important to keep in mind should your landlord requests post-dated cheques.
Rule on writing post-dated rent cheques before having money? - servatin.info Forums
What if this created an overdraft and I had to pay expensive fees? Once you sign a check, it can legally be cashed — regardless of the date you wrote on it — by the payee. There is a way to prevent the payee from cashing the check before the date: If you find it necessary to write a postdated check, and you provide your bank with reasonable notice not to cash your postdated check, then the bank may not legally cash it. There are some caveats to this, which depend on the manner in which you provide notice to your bank, according to the Consumer Financial Protection Bureau CFPB: If you provide written notice about a postdated check, your notice is valid for six months.
Security Deposits and Post-Dated cheques: Do I Need to Provide Them?
If you only provide oral notice, your notice is only valid for 14 days. So what happens if the bank cashes your check despite your reasonable notice?
Well, the bank may then be liable to you for damages, like overdraft fees, for instance. According to this eHow. If you do accept it, you should check with your bank to see if they can process the check before the date on the check.
If the person who wrote the check has provided reasonable notice of postdating to their bank, however, you will not be able to cash the check early.