Security deposits are illegal in Quebec: article 1904, word for word

Residential lease · Civil Code of Quebec

Standard practice in most of Canada. Here the Civil Code closes it completely.

Security deposits are illegal in Quebec: article 1904, word for word

The text

Article 1904: "The lessor may not exact any instalment in excess of one month's rent; he may not exact payment of rent in advance for more than the first payment period or, if that period exceeds one month, payment of more than one month's rent. Nor may he exact any amount of money other than the rent, in the form of a deposit or otherwise, or demand that payment be made by postdated cheque or any other postdated instrument."

What is prohibited, point by point

The word that decides everything

"Exact". The law does not make the tenant's gesture illegal, it makes the landlord's demand illegal. A tenant who freely hands over postdated cheques does nothing wrong. A landlord who makes it a condition of the lease does.

Why it matters when you buy a plex

A seller who tells you there are "security deposits held for each unit" is telling you about a non-compliant practice that you inherit with the building. It is verifiable in the leases and in the building's books, before the offer rather than after.

Same logic for leases carrying prohibited fees. A void clause does not become valid because someone signed it.

Where this actually lands: at purchase, not after

These rules have one thing in common. They are not discovered while managing a building, they are discovered while buying one. A lease carrying a void clause, a deposit that was never lawful, a dwelling occupied by a succession, a subdivision project the law has suspended: each of those is sold along with the building.

That is why we read the leases, the building's tax position and the history of notices before making an offer on a plex, never after acceptance.

Three habits before buying a rental property

Related

Frequently asked

Are security deposits legal in Quebec?

No. Article 1904 of the Civil Code prohibits a lessor from exacting any amount other than rent, as a deposit or otherwise.

Can a landlord require postdated cheques?

No. The same article prohibits demanding payment by postdated cheque or any other postdated instrument.

How much rent can be required in advance?

The first payment period only, and never more than one month's rent.

Sources: the official English version of the Civil Code of Quebec (legisquebec.gouv.qc.ca), the Administrative Housing Tribunal (tal.gouv.qc.ca), Canada Revenue Agency guide T4036 Rental Income and Revenu Quebec, consulted 11 September 2026. This page informs; it is neither legal nor tax advice. For a specific situation, consult a notary, a lawyer or an accountant.

Update, 13 September 2026

One party proposes to change this rule. See the PCQ wants to change article 1904 and the five housing platforms compared.

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