Non-Sufficient Funds Charges
Under section 87 of the RTA, where a landlord applies for an order for the payment of arrears of rent, the application may include a claim for the amount of NSF charges paid to a financial institution in respect of cheques tendered to the landlord by the tenant, plus the landlord’s administrative charges in respect of those cheques. The administrative charges are limited to a maximum of $20.00 per cheque per section 17 of Regulation 516/06.
These charges, if claimed, will normally be awarded and, if the order terminates the tenancy, the tenant will have to pay these amounts in addition to the other amounts payable in order to avoid eviction. See also the section below on Amount Payable to Prevent an Eviction.
Although a landlord may apply for NSF charges, they cannot be claimed in an N4 notice of termination. Under subsection 59(3) of the RTA, a notice of termination is void if the tenant pays the arrears and the additional rent that has become owing. There is no requirement for the tenant to pay NSF charges to void the notice. Therefore, including NSF charges on an N4 will likely invalidate the notice.
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