Post dating cheques illegal
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.
If the rent payments are made weekly, the deposit cannot be more than one week’s rent.
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.
For instance, if you’ll be out of town when rent is due, but don’t have the funds to pay rent early, you might postdate your check.
However, keep in mind that it is illegal to intentionally write a bad check; if you’re postdating it with the intention of canceling it before the date, or if you know for certain that you won’t have the funds, you could run into legal trouble.