How to Record a Nova Scotia Security Deposit by e-Transfer

A Nova Scotia landlord can accept a residential security deposit by Interac e-Transfer, but the payment method does not change the deposit rules. The deposit cannot exceed one-half of one month's rent. Record the completed payment against the tenant and lease, move the money into the landlord's designated trust account no later than the third banking day after receipt, and keep the notification, bank evidence, trust-account entry, lease, and condition records connected.

At the end of the tenancy, return the deposit with any required interest within 10 days unless the tenant agrees in writing to a deduction or the landlord follows the current security-deposit claim process. An e-Transfer email is useful payment evidence; it is not a substitute for the trust ledger, bank records, or claim documents.

What Are Nova Scotia's Security-Deposit Rules?

Nova Scotia's standard form of lease states that a security deposit cannot exceed one-half of one month's rent. It also identifies the trust account, the three-day deposit requirement, the return with interest, and the 10-day deadline after the tenancy ends.

The Residential Tenancies Regulations add important trust-account controls. A landlord who receives a deposit in money must maintain a designated trust account at an eligible financial institution, keep it separate from the landlord's own money, preserve the trust-account bank statements and passbook, and deposit the tenant's money no later than the third banking day after receiving it.

That creates two different events when a tenant pays by e-Transfer:

1. the tenant's transfer completes in the receiving bank account; and
2. the landlord places the deposit in the designated trust account.

If the e-Transfer lands first in an operating account, do not treat the notification as proof that the trust obligation was completed. Record the second bank movement and reconcile both accounts. Charges for setting up and normally operating the trust account are the landlord's responsibility under the Regulations; do not reduce a tenant's deposit by an account fee.

What Should a Nova Scotia Deposit Ledger Include?

Keep one tenant-level row for each deposit payment or instalment. A practical ledger includes:

• Tenant name and rental-unit address
• Lease start date and monthly rent used to check the one-half-month limit
• Amount required and amount received
• Displayed e-Transfer payer name when it differs from the tenant
• Notification date, final status, and Interac reference when available
• Date and account in which the payment first settled
• Date and reference for the movement into the designated trust account
• Running deposit balance held for that tenant
• Move-in and move-out condition-report dates
• Interest calculation period and result
• Tenant's forwarding address and lease email address
• Return date, amount, recipient, and outgoing payment reference
• Any written consent, Form R filing and service details, Director's decision, or Form J application

Keep the lease, inspection reports, photographs, tenant correspondence, notification, receiving-account entry, trust-account statement, and return or claim records with the ledger. The payment record explains how money moved; the tenancy documents explain why it may later be returned or retained.

How Do You Record the Deposit From Receipt to Return?

1. Confirm the lawful amount and lease terms

Calculate the deposit from the monthly rent and do not request more than one-half of one month's rent. Identify the financial institution and branch for the trust account in the lease where the standard form requires it.

Keep rent separate from the security deposit even if both are due at signing. If one e-Transfer combines the amounts, split the completed payment in the ledger without inventing two bank deposits. The allocation should agree with the lease and the tenant's written instructions.

2. Capture the e-Transfer without assuming settlement

Record the amount, payer, notification date, displayed status, message, and reference number when available. Then open the financial institution through its known app or website and confirm that the funds reached the intended account.

A sent notice, reminder, deposit confirmation, cancellation, and replacement can describe stages of one payment. Count the money once. If the transfer remains pending or later expires, use the e-Transfer status reconciliation workflow and leave the deposit balance unpaid until settlement is confirmed.

3. Move the money into the trust account on time

Record the completed incoming payment and the transfer into the designated trust account as separate linked events. The Regulations require the deposit to reach the trust account no later than the third banking day after the landlord receives it.

Reconcile the tenant ledger to both bank entries. The amount leaving the receiving account should equal the amount entering the trust account, and the tenant's running balance should remain unchanged. Do not classify the internal bank movement as another tenant payment or as rental income.

4. Give the tenant a clear acknowledgement

Provide a written record identifying the landlord, tenant, unit, amount, date received, payment method, and purpose as a security deposit. If someone else paid, preserve that person's displayed name and identify the tenant whose obligation the payment satisfied.

An acknowledgement helps both parties, but it does not replace bank settlement evidence. The broader e-Transfer proof-of-payment guide explains how the notification, bank record, lease, and receipt answer different questions.

5. Preserve condition and tenancy evidence

The Nova Scotia standard lease recommends a written inspection report signed by the landlord and tenant no later than seven days after the tenancy starts and no later than seven days after it ends. Preserve the report and dated photographs with the lease file.

Keep rent payments in a separate rent ledger. A deposit is not the last month's rent unless the law and the parties' documented circumstances support a later application. For recurring payments, use the rent e-Transfer tracking workflow.

6. Calculate the return and interest

Use Nova Scotia's current Security Deposit Interest Calculator rather than carrying forward an old rate. The calculator currently lists 0% from January 1, 2013 to the present, but an older tenancy can cross periods with different rates.

Prepare a closing calculation showing the deposit received, interest, any tenant-authorized deduction, amount returned, return recipient, date, and reference. Record the outgoing e-Transfer as a new event; do not edit the original receipt to make it appear reversed.

7. Return the deposit or follow the claim process within 10 days

Nova Scotia's Guide to Form R says a landlord must return the deposit within 10 days after the tenancy ends unless there is unpaid rent, tenant-responsible damage, or the tenant consents in writing to the landlord retaining some or all of it.

When the tenant has not given written consent and the landlord seeks to retain an amount, the landlord must submit Form R to the Director of Residential Tenancies and serve a copy on the tenant within the 10-day period. The guide says the landlord loses the Form R retention route and must return the deposit if both steps are not completed on time. If the claimed unpaid rent or damage exceeds the deposit, the guide points landlords to Form J for a hearing.

Do not use a bookkeeping entry as a substitute for the required form or service evidence. Keep the submitted form, attachments, delivery proof, decision, and final payment with the closed ledger.

Which Nova Scotia Deposit Edge Cases Need Extra Care?

Several tenants or a third party pay

Keep each completed transfer with its own payer, amount, and reference, then allocate the total to the tenant deposit balance. Document who is entitled to receive the return; do not assume it is automatically the person whose banking profile sent the first instalment.

One transfer includes rent and the deposit

Allocate the payment between rent and security deposit according to the lease and written instructions. Move only the security-deposit portion into the trust account and reconcile the rent portion to the correct rental period.

The property changes owners

The Residential Tenancies Regulations require the trust account, records, and statements to transfer to the new landlord when the rental property is sold or transferred. Reconcile every tenant balance before and after the handoff and give the successor enough information to return or claim the correct amount.

The tenant disputes a deduction

Do not delete the original deposit or overwrite the ledger with the proposed deduction. Preserve the condition evidence, calculation, communications, Form R records, and final decision as separate events. A tenant can use Nova Scotia's Form S process when the stated conditions apply.

How TransferLog Helps Organize Deposit Notifications

TransferLog organizes details found in supported incoming and outgoing Interac e-Transfer notification emails from connected Gmail, Outlook, and iCloud inboxes. Property managers can search and filter the records, assign categories, and export CSV or PDF on the Pro plan before matching payments with tenant ledgers and bank activity.

TransferLog does not access bank or trust accounts, calculate deposit interest, maintain a legal trust ledger, prepare tenancy forms, serve documents, decide whether a deduction is lawful, or replace lease and inspection records. Its role is to make the supported notification layer easier to review and export.

Official Sources

• Nova Scotia: Standard Form of Lease Regulations
• Nova Scotia: Residential Tenancies Regulations
• Nova Scotia: Guide to Form R—Security Deposit Claim
• Nova Scotia: Application to Director to return a security deposit—Form S
• Nova Scotia: Security Deposit Interest Calculator
• Interac e-Transfer FAQ

This article provides general record-keeping information, not legal advice.

Organize supported rent and deposit e-Transfer notifications with TransferLog. Start free, then reconcile the export with the trust account and tenancy file.