Deposits (and rent payments) collected from customers, on behalf of owners represented, are, by law, deposited into a non interest bearing Real Estate Trust account within 5 business days of receipt. This non bearing interest Real Esate trust account is kept separate and apart from other monies and can only be disbursed under strict rules.
There are two types of deposits, defined as follows:
1. COTTAGE BOOKING DEPOSIT
The booking deposit is required to confirm your booking and hold the cottage. It consists of one-third of the total rent (rounded to the nearest dollar) and is payable at the time of booking. Unless otherwise agreed, all monies must be in CDN funds. If you are giving an alternate choice on your booking form, base the deposit on your first choice, or if rents vary widely, on an average amount. Round to the nearest dollar.
2. COTTAGE SECURITY DEPOSIT
Security deposits are collected by the Company, on behalf of the cottage Owner, as security for the observance by the Renter of the Terms and Conditions of Rental (see reverse of rental application form) and Rental Agreement between the Renter and Owner. The deposits vary in amount by property and length of rental. The specific amounts are indicated on each listing under the heading "S. Dep.". Deposits are held for either fifteen (for properties without telephone service), or, forty days following the end of a rental period. Deductions from the deposit may be made for failure to leave the property clean, breakages, any long distance telephone calls (these should always be charged to a calling card or another number) and hydro/utility costs (where this is a condition of the rental, i.e. seasonal rentals). No interest is collected by the company on these deposits, therefore, none is paid. The security deposit is due when the rent is paid in full (i.e. four weeks prior to the start of the rental). With claims less than $100, no notification will be given to the Renter. For claims over $100, the Company and Owner will give you a copy of the claim. As this deposit is held in Trust for the Owner, the Company may have no alternative but to honour the claim. Any further dispute from the Renter must be dealt directly with the Owner. If a dispute over a claim does arise, the security deposit may be held longer than the 15 or 40 day period.