My husband and I are hoping to purchase a property that is in foreclosure. The property comes with a tenant that we would have to assume. The tenant was given a lease until Sept. 2010 for which they pay $750 incl utilities. Also in the lease, it states that the tenant gave $4500.00 as a security deposit, so at the end of the lease, we would have to pay this out. Ontario law states that a deposit cannot be more than one month's rent, so in this circumstance, are we required to pay?

Why did he pay such a high deposit, was it lease purchase agreement.

It is not a purchase. We think that the lease was made as a last ditch attempt to keep the house for longer or friend signed it to them.