AI Quebec Security Deposit Return Letter

CRITICAL LEGAL NOTICE, QUEBEC ONLY: Security deposits (caution) for damage or unpaid rent are prohibited in residential tenancies in Quebec under the Civil Code of Québec (CCQ art. 1904) and Tribunal administratif du logement (TAL) rules. Landlords may not collect or hold any deposit for damages, last month's rent, or security.

The only advance payment permitted is the first month's rent at the beginning of the tenancy. Any amount collected beyond the first month's rent as a "deposit" is illegal. The tenant can recover such amounts plus interest by filing an application with the TAL.

This document is used when:

• Returning any improperly collected "deposit" or prepaid amounts.
• Addressing post-tenancy claims for damage (which must be pursued via the TAL, not by unilateral deduction from a deposit).
• Documenting the distinction between normal wear and tear (not recoverable) and tenant-caused damage beyond ordinary wear (recoverable only through TAL order)., -

1. Parties and Tenancy Details

Date of this Letter: [[Date of Letter]]

Landlord / Sender: [[Landlord Full Legal Name or Company]] ("Landlord")
Address: [[Landlord Address]]
Phone: [[Landlord Phone]] | Email: [[Landlord Email]]

Tenant / Recipient: [[Tenant Full Legal Name(s)]] ("Tenant")
Forwarding Address: [[Tenant Forwarding Address]]
Phone: [[Tenant Phone]] | Email: [[Tenant Email]]

Premises: [[Full Property Address, Unit, City, Quebec Postal Code]]

Lease Period: From [[Lease Start Date]] to [[Lease End / Move-Out Date]]

Move-Out Date / Keys Returned: [[Move-Out Date]], -

2. Statement on Security Deposits

Landlord confirms:

• No security deposit, damage deposit, or guarantee was lawfully collected or held.
• Only the first month's rent was collected in advance as permitted by law.
• Any amounts previously described or collected as a "deposit" (if any) were collected in error and are being returned here.

Amount Previously Collected as "Deposit" (if any): $[[Amount Illegally or Improperly Collected as Deposit]]

This amount is returned in full with applicable interest (if any)., -

3. Prepaid Rent or Other Amounts Being Returned

If any prepaid rent beyond the first month or other advance payments are being returned:

Description: [[Description of prepaid amounts being returned, e.g. "Overpayment of rent for [[Month]] due to early termination"]]

Amount returned: $[[Amount of Prepaid Rent or Fees Returned]]

Method of return: [[E-transfer / Cheque mailed / Other lawful method]] to the forwarding address above., -

4. Move-Out Inspection and Condition

A move-out inspection was offered / conducted on [[Date of Inspection]].

Landlord's findings regarding condition (attach photos and detailed checklist as Schedule A):

[[Detailed description of condition at move-out compared to move-in. Note any damage beyond ordinary wear and tear, with locations and estimated costs if claiming.]]

Ordinary wear and tear (not deductible or claimable): minor scuffs, faded paint, carpet wear from normal use, small nail holes, etc.

Damage beyond ordinary wear and tear (potentially claimable only via TAL): large holes in walls, broken fixtures from misuse, stains from neglect, pet damage beyond reasonable, unauthorized alterations, etc.

Landlord may not unilaterally withhold or deduct any amounts from prepaid rent or a non-existent deposit for wear-and-tear items., -

5. Claims for Damage or Unpaid Amounts

If Landlord believes Tenant caused damage beyond ordinary wear and tear or owes unpaid rent or other amounts, Landlord must pursue recovery through the Tribunal administratif du logement by filing the appropriate application (e.g., for recovery of money or damages).

Landlord may not treat any prepaid amounts or "deposit" as security to be applied unilaterally.

Landlord's itemized claim (if any, must be pursued via TAL):

Supporting documentation (invoices, estimates, photos, move-in/move-out reports) will be submitted with the TAL application.

Note: Tenants may contest any claim and the TAL will determine whether amounts are owing and the proper remedy., -

6. Return of Funds (No Lawful Deposit to Apply)

Because no security deposit is permitted or held:

• Any funds being returned are the first month's rent portion (if overpaid) or other prepaid amounts.
• If Landlord has a valid claim, it must be adjudicated by the TAL. The tenant may be ordered to pay after a hearing.

Total Amount Enclosed or Transferred Herewith: $[[Total Amount Being Returned to Tenant]]

Method and Reference: [[E-transfer confirmation / Cheque number / Date sent]] to [[Tenant Forwarding Address or account details]].

If any balance is claimed by Landlord, the net amount above reflects only the undisputed return; disputed amounts are subject to TAL proceedings., -

7. Tenant's Right to Recover Improperly Held Funds

If Landlord collected or continues to hold any amount as a security deposit or improperly withheld prepaid funds:

Tenant may file an application with the Tribunal administratif du logement to recover the amount plus interest and, where appropriate, additional remedies.

Contact the TAL for the current application forms and filing process (applications can often be filed online or at a TAL office).

TAL Contact Information (as of date of this letter):
Website: [[Current TAL website URL or "www.tal.gouv.qc.ca"]]
Filing instructions and forms available on the official site., -

8. Record Keeping and Documentation

Landlord has retained copies of:

• Move-in and move-out condition reports / photos (Schedule A)
• This letter and proof of delivery / payment
• Any invoices or estimates supporting claims (to be used in TAL proceeding)
• Lease agreement and payment records

Tenant is advised to retain all records, photos, and correspondence., -

9. Signatures and Acknowledgment

LANDLORD

I confirm the statements in this letter are true to the best of my knowledge and that no security deposit was lawfully collected or retained.

Signature: ______________________________ Date: ___________

Name: [[Landlord Signatory Name]]

TENANT ACKNOWLEDGMENT (optional, receipt of funds)

I acknowledge receipt of the amount stated above. Receipt does not constitute a release of any claims I may have or a waiver of my rights to contest any claims by Landlord through the TAL.

Signature: ______________________________ Date: ___________

Name: [[Tenant Full Name]], -

Schedule A, Condition Report Summary (Attach Detailed Photos and Checklist)

Move-In Date Condition Notes: [[Summary or reference to original report]]

Move-Out Date Condition Notes: [[Summary of observed issues]]

Disputed Items: [[List specific items Landlord claims are beyond normal wear]], -

SOURCES AND REFERENCES

• Civil Code of Québec, art. 1904 (prohibition on security deposits), arts. 1851, 2000 (residential leases), arts. 1716, 1736 (latent defects where relevant to condition).
• Act respecting the Tribunal administratif du logement.
• TAL guidance on security deposits (prohibited), return of funds, damage claims, normal wear and tear, and application procedures.
• As of June 2026., -

> Template, not professional advice. Security deposits are illegal in Quebec residential tenancies. This letter documents the return of any improperly collected funds and sets out the process for lawful post-tenancy claims (via TAL only). Landlords who collect or withhold deposits expose themselves to orders for repayment plus interest and possible additional remedies. Tenants and landlords should consult the Tribunal administratif du logement for current forms and procedures. Verify all statements and procedures against current law before use. As of June 2026., -

*AI Quebec Security Deposit Return Letter, airealtydesk.pro*