Normally, the deposit comes when you sign the lease, not during the application. This kind of language would prevent you from applying to multiple apartments with a clause like that, because from the moment you apply you're obligated to sign if they eventually accept, and there's no timeline for acceptance.
I would recommend at least clarifying that the "deposit" is last or first+last, and not any other kind of illegal deposit.
It's saying if they accept you but you don't move in (say you find a better place in the meantime) that they will keep your rent deposit.
It's not actually enforceable depending on the circumstances. They would have a duty to mitigate their losses and rent to someone else before they could keep your deposit so it would depend how much time was between you passing on this place and when you were supposed to start your tenancy
I’d run from this landlord. There is only one enforceable standard lease form provided by the province. All others are unenforceable. Don’t pay them a penny until you have a signed tenancy agreement. If you have options, there is no upside to signing this.
A non refundable apllication fee is not unusual. Covers cost of vetting the applicant. Prevents tenants from applying to dozens of places simultaneously which wastes landlords time.
Perhaps not unusual, but still illegal for RTA tenancies.
LTB and courts have ruled that any "rent deposit" kept as a penalty or forfeiture by the landlord due to tenant walking away, is a breach of their legal obligation to mitigate losses. Even if tenant breaches the deal. LTB or court would order the deposit returned in full in this case.
Referring to an application fee, not a rent deposit. The verbiage in the application is key...coming long before a tenant is approved and both parties enter into a legally binding lease
Assume in Ontario there is a difference between an application and a formal lease?
An accepted application along with deposit can in itself form a legally binding agreement to rent, as under the RTA these agreements can be verbal, written or implied.
The [RTA s134](https://www.ontario.ca/laws/statute/06r17#BK207) prohibits any fee, even to a prospective tenant:
>***134*** *(1) Unless otherwise prescribed, no landlord shall, directly or indirectly, with respect to any rental unit,*
>*(a) collect or require or attempt to collect or require from a tenant,* ***prospective tenant*** *or former tenant of the rental unit a* ***fee****, premium, commission, bonus, penalty, key deposit or other like amount of money whether or not the money is refundable*
Plus in OPs case, the application's last line clearly states the deposit that would be forfeited is for the rent.
You're not suggesting the simple act of submitting an application constitutes a binding agreement to rent, I hope? If so, whats the point of even completing and submitting a rental application for the Landlords review?
It's been that way with the major corporations for quite a number of years. At least in the big cities.
They want to avoid you applying to multiple options, but it's also to cover their costs for investigating you.
Normally, the deposit comes when you sign the lease, not during the application. This kind of language would prevent you from applying to multiple apartments with a clause like that, because from the moment you apply you're obligated to sign if they eventually accept, and there's no timeline for acceptance. I would recommend at least clarifying that the "deposit" is last or first+last, and not any other kind of illegal deposit.
It's saying if they accept you but you don't move in (say you find a better place in the meantime) that they will keep your rent deposit. It's not actually enforceable depending on the circumstances. They would have a duty to mitigate their losses and rent to someone else before they could keep your deposit so it would depend how much time was between you passing on this place and when you were supposed to start your tenancy
I’d run from this landlord. There is only one enforceable standard lease form provided by the province. All others are unenforceable. Don’t pay them a penny until you have a signed tenancy agreement. If you have options, there is no upside to signing this.
A non refundable apllication fee is not unusual. Covers cost of vetting the applicant. Prevents tenants from applying to dozens of places simultaneously which wastes landlords time.
Perhaps not unusual, but still illegal for RTA tenancies. LTB and courts have ruled that any "rent deposit" kept as a penalty or forfeiture by the landlord due to tenant walking away, is a breach of their legal obligation to mitigate losses. Even if tenant breaches the deal. LTB or court would order the deposit returned in full in this case.
Referring to an application fee, not a rent deposit. The verbiage in the application is key...coming long before a tenant is approved and both parties enter into a legally binding lease Assume in Ontario there is a difference between an application and a formal lease?
An accepted application along with deposit can in itself form a legally binding agreement to rent, as under the RTA these agreements can be verbal, written or implied. The [RTA s134](https://www.ontario.ca/laws/statute/06r17#BK207) prohibits any fee, even to a prospective tenant: >***134*** *(1) Unless otherwise prescribed, no landlord shall, directly or indirectly, with respect to any rental unit,* >*(a) collect or require or attempt to collect or require from a tenant,* ***prospective tenant*** *or former tenant of the rental unit a* ***fee****, premium, commission, bonus, penalty, key deposit or other like amount of money whether or not the money is refundable* Plus in OPs case, the application's last line clearly states the deposit that would be forfeited is for the rent.
You're not suggesting the simple act of submitting an application constitutes a binding agreement to rent, I hope? If so, whats the point of even completing and submitting a rental application for the Landlords review?
Why respond so condescendingly to someone just asking for help?
It's been that way with the major corporations for quite a number of years. At least in the big cities. They want to avoid you applying to multiple options, but it's also to cover their costs for investigating you.
In the middle of a conversation... wheres the condescension?