Collecting for Damages - old cheque

[RAHDEAL]

Hi,

Quick question: our tenant moved out and had an outstanding amount owing for rent, condo fines, service invoices and utility bills as we well as damages to the property.

We have an old rent check that was never cashed since they terminated the lease earlier then the term (we agreed to this and signed an amendment reflecting the change)

Can we legally deposit the check to recoup the amount they owe us?

Thanks!

Edit: if it helps, I'm in Alberta.

 

[Tina Myrvang]

Hello,
Are you sure it's not stale dated?

Stale-dated cheques
Financial institutions don’t have to cash a cheque if it is considered “stale-dated”—that is, if it is too old. A cheque is usually considered stale-dated after six months, unless it has been certified. Even though financial institutions are not obliged to cash stale-dated cheques, they may still decide to do so.

I know this didn't answer your questions, but that is the first questions that came to mind when I read your post.

I would start there.

 

[RAHDEAL]

Definitely not stale dated or cancelled. The check is only a couple months old.

 

[Matt Crowley]

No, do not deposit that cheque. That is illegal!

You must make a claim against the DD. If you didn't collect a DD you have to find their forwarding address and make a formal claim. You have no right to claim the money for that cheque.

 

[Thomas Beyer]

Send them an invoice for rent outstanding and damages. Deposit the cheque. Don't call it rent. Call it payment against damages. It may bounce (to say it politely, as it will likely bounce). They can also cancel it.

Assuming $s are still outstanding, or that cheque bounces or is cancelled, take them to small claims court to ascertain your damages, and then, once you have a judgement, garnishee their bank account.

Don't be so timid. They damaged a property that is worth, what $300,000 ..or more ? Why the hesitation ?

 

[cberezowski]

I agree with Thomas. Make sure you do all the appropriate paperwork and document all the outstanding amounts and damages. Then cash the cheque and document that as payment for the outstanding amount owed. For anything outstanding, or in the case the cheque bounces, use the RTDRS as it costs $75 to file and the process is relatively simple. If this goes to a hearing because the tenants did not like you cashing their cheque, you can prove your claim and they will have a hard time explaining why they should not pay you.

cb