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By: Ernest Woo LLB and Jayson Schwarz LLM Every time someone begins to negotiate a lease for a residential premise, the issue of security deposits and post-dated cheques needs to be dealt with. A deposit is usually demanded by the landlord in order to use all or part of the deposit to cover any damages to the property caused by the tenant or to cover rent should a tenant fail to make a rent payment.

Consumers are often unaware of their rights and obligations and so have an unequal bargaining position with a potential landlord. The legal limit for deposit and the type of deposit allowed will vary from province to province.

You should never agree to a requirement in your tenancy agreement if you are unsure of its effect!

Ernest Woo LLB is the articling student at Schwarz Law LLP and Jayson Schwarz LLM is the senior partner at the firm.

However, in practice, sometimes things do not go as smoothly.

Due to the large amount of cheques and the automated process in most of the country’s financial institutions, sometime cheques may be cashed early.

For instance, if you write a check on June 1 but date the check June 25, you are postdating the check.

A post-dated cheque is a cheque that is dated for a future date.

For example, in Ontario and Manitoba, landlords may request post-date cheques but a tenant is not required to provide them.

However, once a landlord and tenant agree to a method of payment, it cannot be changed unless both the landlord and tenant agree.

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.

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