The statement of adjustments, decoded.
The statement of adjustments is the final accounting at closing. It prorates costs the seller prepaid or left unpaid so each side pays only for their time owning the home. It sets the exact bank draft you bring to close.
Book a 15 minute callProperty tax
If the seller prepaid the year of property tax, the buyer reimburses the share from closing day forward. On a 750,000 Mississauga home the annual tax runs near 6,200, so a mid year closing can adjust about 3,100 toward the seller.
Utilities and condo fees
Condo fees are usually paid monthly in advance, so the buyer reimburses the rest of the month. Water and other utilities are settled by meter reading or final bill. Each line is small but they add up.
Deposits and credits
The deposit you paid with the offer is credited against the purchase price here, along with any agreed credits for repairs or incomplete work. Khan Law checks every figure before you wire funds.
Important considerations
- The exact figures depend on the closing date. Khan Law sends the final statement three to five days before closing.
- A prepaid tax or condo fee shifts money toward the seller on a mid cycle close.
- Always reconcile the deposit credit against the agreement of purchase and sale.
Frequently asked
Why do I owe the seller for property tax?
Because the seller already paid tax for part of the year you will own the home. The adjustment reimburses their prepaid share from closing day forward.
When do I get the final number?
Khan Law provides the statement of adjustments and the exact funds to close three to five days before closing.