post-dated cheques. renting a room in canada.?

I'm from different country and will be subletted into this room for next 4 months in Canada.

The tenant demanded me to prepare post-dated cheque.

I do not exactly know what it is, but based on what I have searched and my assumption, by signing post-dated cheque, I will have to provide the rent by the date it is indicated in post-dated cheque(?).

Though, I am a little confused about whether the post-dated cheque is just the agreement for paying the rent by the promised date or if the rent will get automatically withdrawn from by bank account to the tenant's when it comes to the due date.

The tenant told me that I could provide total 4 post-dated cheques for each month and all 4 must be prepared on the date of moving in.

Does this mean that the money will be charged from my bank account 4 times for each month on the due date(in my case the 1st of every month)?

Would I need to deposit sufficient amount of money to cover up the rents in my bank account prior to making cheques?

Please give me further details.


5 Answers

  • bw022
    Lv 7
    10 years ago
    Favorite Answer

    A post-dated cheque is merely a normal cheque, but with a date sometime in the future. The cheque can not be deposited until the date on the cheque and money is not withdrawn from your bank account until a day or so after it has been deposited -- depending upon how long it takes the banks to process the cheque (weekends and holidays delay it even more). The cheques are not certified -- neither he nor the bank know if you will actually have the funds in your account when the cheque is cashed.

    Post-dated cheques are common in cases where a lease is involved or one of the parties might not be there to physically transfer the cheques on a specific day.

    Your landlord is asking for four cheques. They would be dated say May 1st, June 1st, July 1st, and August 1st. Money will come out of your chequing account once shortly after he deposits each cheque -- which can only happen on the first of the month.

    The only difference for post-dated cheques is that it moves the onus to the writer of the cheque in case of a dispute. Normally, if you are paying rent you could forget to pay, pay late, or sneak out without paying the next month's rent. The landlord then has to find you, hound you for payment, sue you, etc. to collect what is owed. In court you can claim the place was unsuitable. In any case, it's a hassel for him.

    With post-dated cheques... he merely deposits them. If you don't have sufficient funds, he can start proceedings to kick you out immediately, a bounced cheque hurts your credit rating, and any court will enforce a post-dated cheque and then require you to sue if you want your money back. It looks suspiously like cheque fraud.

    However, if things are really bad, you can always put a stop payment on a cheque. Courts look more favourably on that action in the case of a dispute, but... the onus is still on you to prove that the place was unsuitable.

    One final thing. Unscrupuous (or careless) folks can try to cash a post-dated cheque before the given date. If the bank teller isn't paying attention. In this case, the money does come out of your bank and they can walk away with the money. When you (or someone else) notices, the money will be returned... although he might already have fled town. This shouldn't be a concern in your case, since the guy is your landlord and can't just fly out of town. However, it is always a good idea to use a highlighter on the date field so that tellers can see immediately to look at the date.

  • Anonymous
    4 years ago

    Post Dated Cheques

  • 4 years ago


    Source(s): Rent-To-Own Homes -
  • 4 years ago


    Source(s): Extra Cash Writing
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