Closing adjustments allocate specified prepaid or unpaid property amounts between the parties as of the contract's adjustment date. They are transaction-specific and should be reconciled against the contract and conveyancer's statement.
Decision points
- 01
Do not confuse adjustments with professional fees or transfer tax.
- 02
Check the contract dates and supporting accounts.
- 03
Ask about every credit or debit that does not match the documents.
Identify the accounts that cross completion
Depending on the property and contract, adjustments may address property tax, strata fees, utilities, rents, deposits, fuel, local charges, and other prepaid or unpaid amounts. The applicable contract and accounts determine the list.
Check the dates and direction
Confirm completion, adjustment, and possession dates; the period covered by each account; the amount already paid; and which party receives the credit or bears the debit. A one-day or annual-period assumption can move the result.
Reconcile the final trust request
Compare the statement of adjustments with the purchase or sale contract, tax notice, strata information, deposit credit, mortgage advance or payout, and professional invoice. The closing-cost tool is a planning file; the conveyancer's statement is the transaction record.
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