WHAT IS A STATEMENT OF ADJUSTMENTS?
WHAT IS A STATEMENT OF ADJUSTMENTS?
Lawyers in Ontario during a real estate closing will use a document called Statement of Adjustments.
A good real estate lawyer will generally forward a copy to the clients in advance of the closing date for review. In most situations the document is generated using real estate software. The Statement of Adjustments is generated by the seller’s lawyer and forwarded to the purchaser’s real estate lawyer.
WHAT DO I DO WITH THE STATEMENT OF ADJUSTMENTS?
As the client you should receive this document in advance and review it prior to meeting the lawyer. You should check to ensure the deposit price and purchase price are accurate. You should also cross reference the property tax that has been paid for the year as identified on the document with a tax certificate.
Essentially, the seller identifies what they have paid for the year for property taxes and whether they are owed any money back.
It’s a good idea to ensure that the numbers seem somewhat accurate. Close the middle of the page will be the actual funds that will be required for the seller’s real estate lawyer on closing.
Typically, the words will say something as follows: Balance payable to John Smith Lawyer in Trust.
HOW MUCH MONEY DO I BRING IN FOR CLOSING?
Once, the number is determined for what needs to be paid to the seller’s lawyer. The purchaser should add in additional costs such as their lawyers legal fees and disbursements, Land Transfer Tax, and any other fees payable.
IS THERE A REAL ESTATE LAWYER NEAR ME?
If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.
My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901 OR
anytime for a free consultation