By Karim Eshqoor, BBA, LLB, LLM · Barrister & Solicitor (LSO #83032R) · Barbarian Law® · October 2026
The statement of adjustments is the one-page calculation that sets the balance the buyer pays the seller on closing. It starts from the price, credits the deposit, and splits shared costs such as property taxes, condo fees and rent so each side pays for the days it owns the home. Under the standard Ontario resale agreement, the closing day itself is the buyer’s.
Who prepares it, and when do I see it?
The seller’s lawyer usually prepares it and sends it to the buyer’s lawyer a few days before closing. The buyer’s lawyer checks every line against the agreement, the deposit receipt, the municipal tax certificate and, for a condo, the status certificate. Disagreements are settled between the lawyers before closing day.
What is on a statement of adjustments?
| Line | Who gets the credit | What it reflects |
|---|---|---|
| Sale price | Seller | The price in the agreement, including any amendments |
| Deposit | Buyer | Every deposit paid to the brokerage, including a second deposit |
| Property taxes | Seller if paid ahead; buyer if unpaid | This year’s taxes split to the closing date, from the tax certificate |
| Condo common expenses | Usually the seller | The month’s fee the seller has paid, split to the closing date |
| Unmetered utilities or fuel | Usually the seller | Heating oil left in the tank, or a utility billed in advance |
| Rent and rent deposits | Buyer, when tenants stay | Rent for the closing month and the last month’s rent deposit the buyer takes over |
| Balance due on closing | What the buyer’s lawyer sends to the seller’s lawyer |
The standard Ontario agreement of purchase and sale (OREA Form 100) apportions rents, mortgage interest, property taxes and unmetered utilities and fuel to the day of completion, with that day counted as the buyer’s.
How are property taxes adjusted?
By the day. The lawyers take the year’s taxes from the municipality’s tax certificate and split them to the closing date. If the seller has paid instalments that cover days after closing, the buyer repays those days. If the seller is behind, the arrears come off what the buyer pays. When the year’s final bill hasn’t been issued yet, the lawyers adjust on the best figure available.
What is not on the statement of adjustments?
Your own closing costs. Land transfer tax, the title insurance premium, registration ($86.42 per document from November 2, 2026) and your legal fee are on your own lawyer’s statement, not this one. The seller’s mortgage payout is the seller’s business and comes out of the sale proceeds. See real estate lawyer fees in Ontario.
What should a buyer check?
- The deposit, in full, including a second deposit.
- The tax figures against a current tax certificate.
- The condo fee against the status certificate.
- On a tenanted property, the rent for the closing month and any last month’s rent deposit.
- The balance due against your own lawyer’s closing figures.
Residential closings at Barbarian Law®
| Service | Price |
|---|---|
| Purchase, including one mortgage | $1,750 + HST |
| Sale, including discharge of the first mortgage | $1,750 + HST |
| Purchase and sale together | $3,200 + HST |
| Condo status certificate review (included in the purchase fee; charged only if the deal doesn’t close) | $350 + HST |
Prices exclude HST and disbursements. Hourly work is billed against a written estimate you approve before work begins.
Buying and selling at the same time? See title requisitions and same-day double closings.
Frequently asked questions
Who pays the property tax for closing day?
The buyer, under the standard Ontario resale agreement.
Is land transfer tax on the statement of adjustments?
No. It is paid by the buyer through the buyer’s lawyer when the deed registers.
When will I see the statement of adjustments?
Usually a few days before closing, once the seller’s lawyer has the tax and status figures.
Does checking it cost extra?
Not at Barbarian Law®. It’s part of the flat fee: $1,750 + HST for a purchase with one mortgage or for a sale, searches and closing software included.
Where Art Meets Corporate Interest.
Get the closing number in writing before closing week.
You get a written estimate of the fee and disbursements before any work starts, and nothing is paid until closing.
This article is general information about Ontario law, not legal advice, and reading it does not create a lawyer-client relationship. Every situation is different; speak with a lawyer about yours.
