Establishment of security deposit
8(1)A lease entered into after this section comes into force may provide for a security deposit to be made by the tenant at the beginning of the tenancy.
Establishment of security deposit
8(2)A security deposit is to provide security against
(a)
the tenant’s failure to pay rent,
(b)
the tenant’s failure to reimburse the landlord for expenses incurred by the landlord for the supply of heat, water, electric power or natural gas services to the premises where
(i)
the lease provides that the tenant will pay the expenses incurred by the landlord for the supply of the services, and
(ii)
the rent does not include the payment by the tenant for the provision of the services,
(c)
the tenant’s failure to pay a late payment fee required by the landlord under section 19.1 where the tenant failed to pay the late payment fee after receiving a request in writing, dated and signed by the landlord or an agent or representative of the landlord, to do so, or
(d)
the tenant’s failure to comply with the tenant’s obligation under paragraph 4(1)(
a) or (
b) respecting cleanliness or repair of the premises or any chattels provided in the premises by the landlord.
Establishment of security deposit
8(3)A security deposit is not to exceed,
(a)
in the case of a week to week tenancy, the rent payable for one week’s occupation of the premises, or
(b)
in the case of a tenancy other than a week to week tenancy, the rent payable for one month’s occupation of the premises.
8(4)No person shall require
(i)
entering into a lease, or
(ii)
not terminating a lease,
any other person to pay any amount other than rent, a security deposit or a reasonable amount for any service to be provided in relation to the tenancy, and any agreement under which such a requirement is imposed is void.
8(4.1)A landlord or his agent or representative shall not require a tenant to make or accept from a tenant
(a)
a prepayment of the last month’s rent;
(b)
a single rental payment that is greater than any other regular rental payment required under the tenancy agreement; or
(c)
a security deposit in addition to the maximum amount permitted under this Act.
8(4.2)Where an amount of money has been accepted in contravention of subsection (4.1), the landlord or his agent or representative shall return that amount to the tenant forthwith.
Subsections 8(4.1) and (4.2) applicable after July 31, 1985
8(4.3)Subsections (4.1) and (4.2) shall apply only to an amount of money required or accepted after July 31, 1985.
8(4.4)Where a person is convicted of an offence for a violation or a failure to comply with subsection (4), (4.1) or (4.2), the judge may, in addition to any other penalty, order the person convicted to make restitution in relation to the offence.
Fund to be maintained by rentalsman
8(5)Each rentalsman shall maintain a fund to be known as a security deposit fund
(a)
into which are to be paid in accordance with this Act amounts required to be provided under the terms of a tenancy agreement as security deposits; and
(b)
out of which may be paid amounts to satisfy claims of landlords allowed by the rentalsman under subsection (12) or as a result of the application of subsection (12.7).
Fund to be maintained by rentalsman
8(6)A rentalsman
(a)
shall establish and maintain in his records separate accounts of each tenant and of all money received under subsections (7.1), (8) and (10), subsection 8.011(1) and section 8.02;
(b)
shall credit the tenant’s account with the amounts received under subsections (7.1), (8) and (10), subsection 8.011(1) and section 8.02;
(c)
shall debit the tenant’s account with any amounts used or returned under subsections (12), (12.7), (14) and (15); and
(d)
shall indicate on each account the name of the landlord currently under contract with that tenant and the address of the premises in respect of which the security deposit is held.
Payment of security deposit to rentalsman
8(7)Repealed: 2000, c.28, s.15
Payment of security deposit to rentalsman
8(7.1)Where a lease providing for a security deposit is entered into after this subsection comes into force and the tenant delivers the security deposit or any portion thereof to the landlord or an agent or representative of the landlord, the landlord shall deliver or cause to be delivered this amount to the rentalsman within fifteen days of receipt thereof.
Payment of security deposit to rentalsman
8(7.2)Any person who receives an amount of money as a security deposit for or on behalf of a landlord after the coming into force of this subsection shall deliver that amount to the rentalsman within fifteen days of the receipt thereof.
Payment of security deposit to rentalsman
8(7.3)Where a security deposit in addition to the maximum amount permitted under this Act has been delivered to a rentalsman, the rentalsman shall return the additional amount to the tenant forthwith.
Payment of security deposit to rentalsman
8(8)Except where appropriate action is taken by the tenant and a rentalsman in accordance with subsections (9) and (10), where a lease entered into after this section comes into force provides for a security deposit the tenant shall deposit with a rentalsman the amount established by the lease.
Payment of security deposit to rentalsman
8(9)Where a tenant enters into a lease providing for a security deposit and has to his credit in an account maintained by a rentalsman an amount deposited as a security deposit under a previous tenancy agreement, he may apply to the rentalsman in the form prescribed by regulation requesting the rentalsman to issue a certificate in satisfaction of the tenant’s obligation to provide a security deposit under the lease.
Certificate of security deposit
8(10)Where
(a)
a tenant deposits with a rentalsman an amount in accordance with subsection (8);
(b)
a landlord or any other person delivers to a rentalsman an amount in accordance with subsection (7.1) or (7.2), subsection 8.011(1) or section 8.02; or
(i)
determines that an application under subsection (9) should be approved, after inquiring into the likelihood of a claim being made in respect of the amount presently credited to the tenant’s account, and
(ii)
receives a sum of money from the tenant equal to the amount by which the security deposit under the lease exceeds the balance in the tenant’s account under subsection (6);
the rentalsman shall deliver to the landlord a certificate to the effect that an amount prescribed therein is held by him as a security deposit in respect of premises designated therein.
Certificate of security deposit
8(11)The certificate referred to in subsection (10) shall be a sufficient basis upon which
(a)
the landlord may make a claim in respect of the failure of the tenant to comply with the obligation of the tenant to pay rent, the obligation of the tenant respecting the reimbursement of the landlord’s expenses in the circumstances referred to in paragraph (2)(
b), the obligation of the tenant respecting the payment of a late payment fee in the circumstances referred to in paragraph (2)(
c) or the obligation of the tenant under paragraph 4(1)(
a) or (
b) respecting the cleanliness or repair of the premises or any chattels provided in the premises by the landlord, up to the amount set out in the certificate, or
(b)
the landlord may request under subsection (12.1) a rentalsman to maintain in the security deposit fund all or a portion of the security deposit of a tenant or of the unused balance of it.
Adjustment of tenant’s account
8(12)Where a tenancy has terminated and the tenant has failed to comply with the obligation of the tenant to pay rent, the obligation of the tenant respecting the reimbursement of the landlord’s expenses in the circumstances referred to in paragraph (2)(
b), the obligation of the tenant respecting the payment of a late payment fee in the circumstances referred to in paragraph (2)(
c) or the obligation of the tenant under paragraph 4(1)(
a) or (
b) respecting the cleanliness or repair of the premises or any chattels provided in the premises by the landlord, the rentalsman, upon a claim being made by the landlord within seven days after the termination of the tenancy and upon conducting a proper investigation, may use all or a portion of the security deposit or of the unused balance of the security deposit toward the discharge of the obligation.
Adjustment of tenant’s account
8(12.01)Subject to section 27, any decision made by a rentalsman under subsection (12) in respect of the security deposit of a tenant or of the unused balance of it is final and binding on the landlord and the tenant.
Adjustment of tenant’s account
8(12.02)Notwithstanding subsection (12), where a tenancy is terminated by a notice to quit issued under this Act or a notice to vacate served on a tenant under subsection 19(1), the landlord may make a claim for the purpose of subsection (12)
(a)
in the case of a week to week tenancy, within seven days after the end of the week in which the tenancy is terminated, or
(b)
in the case of a tenancy other than a week to week tenancy, within seven days after the end of the month in which the tenancy is terminated.
8(12.021)Notwithstanding subsection (12), where a tenancy has terminated and a judge makes an order under section 8.02 directing a person to deliver the security deposit of a tenant or a portion of the security deposit of a tenant to a rentalsman, the landlord may make a claim for the purpose of subsection (12) within seven days after the security deposit or portion of it is delivered to the rentalsman.
Adjustment of tenant’s account
8(12.03)Where, during an investigation, a rentalsman determines that all or a portion of a claim made by a landlord in respect of a security deposit or unused balance of it in accordance with subsection (12) is one that should be made in accordance with subsections (12.1) to (12.8), the rentalsman
(a)
shall notify the landlord, and
(b)
if he or she considers it appropriate, may extend in writing the time in which the landlord is required to act under subsections (12.3) and (12.4), whether or not the time specified in those subsections has expired.
Adjustment of tenant’s account
(a)
a tenancy has terminated, and
(b)
a landlord has a claim against the tenant relating to
(ii)
any real or personal property, in or to which the landlord has a right, title, estate or interest, which is associated with the premises or with the real property of which the premises forms all or a portion,
the landlord may request a rentalsman to maintain in the security deposit fund all of the security deposit of the tenant or a portion of it that is equal to the landlord’s claim or all of the unused balance of the security deposit or a portion of it that is equal to the landlord’s claim.
Adjustment of tenant’s account
8(12.2)Subsection (12.1) does not apply where the claim of the landlord is a claim with respect to the obligation of the tenant to pay rent, the obligation of the tenant respecting the reimbursement of the landlord’s expenses in the circumstances referred to in paragraph (2)(
b), the obligation of the tenant respecting the payment of a late payment fee in the circumstances referred to in paragraph (2)(
c) or the obligation of the tenant under paragraph 4(1)(
a) or (
b) respecting the cleanliness or repair of the premises or any chattels provided in the premises by the landlord.
Adjustment of tenant’s account
8(12.3)A request by the landlord under subsection (12.1) shall be made by
(a)
notifying the rentalsman of the landlord’s intention to commence a proceeding,
(b)
serving on the rentalsman a copy of the document by which a proceeding has been commenced,
(c)
serving on the rentalsman a copy of the settlement of the claim in respect of which a proceeding was commenced, or
(d)
serving on the rentalsman a copy of the judgment, decision or order in respect of a proceeding where the proceeding, including all appeals from the proceeding, has concluded,
within seven days after the termination of the tenancy.
Adjustment of tenant’s account
8(12.4)Where a landlord notifies the rentalsman under paragraph (12.3)(
a) of the landlord’s intention to commence a proceeding, the landlord has fourteen days after the termination of the tenancy to commence a proceeding and to serve on the rentalsman a copy of the document by which the proceeding is commenced.
Adjustment of tenant’s account
8(12.5)The Rules of Court apply to a proceeding referred to in paragraph (12.3)(
b), (
c) or (
d) or subsection (12.4).
Adjustment of tenant’s account
8(12.6)The rentalsman shall maintain the security deposit of the tenant or the unused balance of it in the security deposit fund until the occurrence of any of the following:
(a)
subject to paragraph (
a.1) the expiry of fourteen days after the termination of the tenancy where the landlord does not serve on the rentalsman under subsection (12.4) a copy of the document by which the proceeding is commenced;
(a.1)
in a case to which subsection (12.03) applies, the expiry of the time specified in writing by the rentalsman, if any, where the landlord has not acted under subsections (12.3) and (12.4), as provided in subsection (12.03);
(b)
the rentalsman is served with a copy of the settlement of the claim under paragraph (12.3)(
c) or in respect of which a proceeding referred to in paragraph (12.3)(
b) or subsection (12.4) was commenced where there is a settlement of the claim; or
(c)
the rentalsman is served with a copy of the judgment, decision or order under paragraph (12.3)(
d) or in respect of a proceeding referred to in paragraph (12.3)(
b) or subsection (12.4) where the proceeding, including all appeals from the proceeding, has concluded.
Adjustment of tenant’s account
8(12.7)Where the settlement of the claim in respect of which a proceeding was commenced is in favour of the landlord, in whole or in part, or relief is granted to the landlord as a result of a proceeding, the rentalsman shall, upon being served under paragraph (12.6)(
b) or (
c), as the case may be, use all or a portion of the security deposit of the tenant or of the unused balance of it toward satisfaction of the settlement of the claim or the judgment, decision or order in respect of the proceeding.
Adjustment of tenant’s account
8(12.8)Service on the rentalsman under paragraph (12.3)(
b), (
c) or (
d), subsection (12.4) or paragraph (12.6)(
b) or (
c) shall be effected in accordance with section 25.
Adjustment of tenant’s account
8(12.9)Nothing contained in subsections (12.1) to (12.8) shall prevent the enforcement of the satisfaction, in whole or in part, of a settlement, judgment, decision or order respecting a claim of the landlord referred to in subsection (12.1) in the same manner as the enforcement of the satisfaction of any other settlement, judgment, decision or order.
Adjustment of tenant’s account
8(13)Repealed: 1987, c.52, s.2
Adjustment of tenant’s account
8(14)Where there is an amount in a tenant’s account under subsection (6) in excess of the amount prescribed in a certificate issued under subsection (10), that excess amount is to be returned to the tenant within seven days of a request in writing by the tenant for such return.
Adjustment of tenant’s account
8(15)Where a tenancy has terminated and no application has been made by the tenant under subsection (9), the amount in the tenant’s account, after the application of subsections (12) and (12.1) to (12.8) is to be returned to the tenant within seven days of a request in writing by the tenant.
8(15.1)Notwithstanding any other provision of this Act, where a tenancy has expired or terminated and a new tenancy agreement is created under section 23 the security deposit of the tenant or the unused balance of it that is maintained in the security deposit fund in respect of the tenancy that has expired or terminated shall remain in the security deposit fund to be used or returned in accordance with this section on the expiry or termination of the new tenancy agreement.
8(16)Notwithstanding anything in the
Financial Administration Act to the contrary, a rentalsman shall deposit all money received by him in respect of the security deposit fund, or pursuant to any other provisions of this Act, in one or more interest bearing accounts in one or more chartered banks or trust companies within the Province.
8(17)Repealed: 1983, c.82, s.4
8(18)All accounts and records of each rentalsman are to be examined by the Auditor General in accordance with the provisions of the
Auditor General Act.
1982, c.3, s.70; 1983, c.82, s.4; 1985, c.36, s.3; 1987, c.6, s.99; 1987, c.52, s.2; 1989, c.61, s.2; 1990, c.9, s.1; 1991, c.21, s.1; 1993, c.23, s.2; 1996, c.51, s.1; 1999, c.3, s.3; 2000, c.28, s.15; 2006, c.5, s.5