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, transfer tax, or deposits.
- 02
Check the contract dates, account period, and supporting record.
- 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.
- Start with the contract and the actual account documents, not a generic adjustment list.
- Separate a deposit credit from a recurring account adjustment.
- Record the payer, covered period, payment status, and supporting document for each line.
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. If an account has changed after the date on a statement, ask how that later information is handled.
Treat a statement of adjustments as a reconciliation task
For every credit or debit, match the description, date range, rate or balance, calculation, and direction to the contract or account record. If a property is tenanted, strata-managed, newly constructed, or otherwise unusual, ask the conveyancer which additional records and contract terms apply rather than treating a familiar line item as automatic.
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.
Common questions, answered directly
What are closing adjustments in a BC real-estate transaction?
They are transaction-specific credits or debits used to allocate certain prepaid or unpaid property amounts between buyer and seller as of the applicable adjustment date. The contract, account records, and completion statement determine which lines apply.
Are property taxes included in closing adjustments?
They may be, but the calculation depends on the contract, the relevant tax period, payment status, and completion or adjustment date. Check the tax notice and statement of adjustments rather than assuming a standard credit.
Who prepares the statement of adjustments?
The transaction professionals prepare and reconcile the completion documentation within the transaction. Ask the professional handling the file to explain any line that does not match the contract or supporting records.
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