Breaking Down the Statement of Adjustments: What Buyers and Sellers Need to Know

Written by: Oviya Sugunakumar
Date: October 31, 2025

In every Ontario real estate transaction, one of the most important documents prepared before closing is the Statement of Adjustments. Its purpose is simple; to make sure both the buyer and the seller pay their fair share of property-related costs up to the closing date. Think of it as a balance sheet for your real estate deal which sets out the purchase price, then lists any credits and debits for each party to determine the final amount the buyer needs to bring to closing.

This document is typically prepared by the seller’s lawyer and reviewed by both sides before funds are exchanged. It accounts for anything that’s been prepaid or is still owing. For example, if the seller has already paid the property taxes for the full year but the buyer takes possession halfway through, the buyer reimburses the seller for their portion. In this way, the Statement of Adjustments ensures that everyone pays for only the time they actually own the property.

For resale properties, the adjustments are usually quite straightforward. You’ll see the purchase price, any deposits already paid, adjustments for municipal property taxes, extension fees, and condominium maintenance fees or common expenses. It may also include charges for rental items like a hot water tank.

​However, for pre-construction properties, the Statement of Adjustments can become much more complex. In addition to the standard items, buyers often face various builder-related charges that can add thousands to the final closing costs. These may include: Tarion Warranty enrollment fees; municipal development, education or art levies; gas, hydro and water meter installation fees; utility connection costs; builder administration fees; status certificate fee; and adjustments related to the HST rebate. For condos, there can also be occupancy fees, property taxes, and common expenses during the interim occupancy period, before final closing takes place.

Because these builder adjustments can quickly add up, it’s crucial for buyers to review their purchase agreement carefully and have their lawyer explain what adjustments the builder is entitled to charge. 

While the purpose of the Statement of Adjustments is the same for both resale and pre-construction properties, the level of complexity can vary widely. Resale statements are typically simple and predictable, while pre-construction statements often include additional fees unique to new developments.

At Theva Law, our team takes the time to walk you through your Statement of Adjustments, explain every line in plain language, and make sure you know exactly what to expect before you sign. Whether you’re buying a resale home or a newly built property, Theva Law is here to help you close with confidence.