How do I handle adjustments for taxes and
utilities?
“How do I handle adjustments for taxes and utilities?” — You’ll like the answer: a step-by-step playbook that stops surprises, keeps money in your pocket, and closes clean.
Why adjustments matter now — and why Georgetown sellers lose money when they ignore them
Closing adjustments are the final math at the sale table. They decide who pays what between the day you stop owning the house and the end of the tax or utility period. Miss a detail and you pay a bill you shouldn’t. Worse: buyers subtract last-minute surprises from your net proceeds.
In Georgetown, Ontario, local billing cycles, municipal processes, and utility setups create a predictable pattern. Learn that pattern. Use it. Close on time. Walk away with your full proceeds.
The short version: what “adjustments” are
- Property tax adjustments: The seller gets credited for the portion of property taxes already paid for the period after closing. Or the seller owes the buyer for taxes accrued before closing but billed later.
- Utility adjustments: Final meter reads or prorated estimates for hydro, gas, water, sewer, and waste.
- Statement of Adjustments: Prepared by your lawyer/closing agent. It lists credits and debits and gives the exact amount to transfer at closing.
Georgetown specifics you must know (local facts that change the math)
- Municipal oversight: Property taxes are administered through the Town of Halton Hills. Billing cycles, installments, and due dates affect proration. Know your latest tax notice.
- Water and sewer: In some properties, water is billed by the Town; in others (rural or private systems), water/sewer may be private or based on meter reads.
- Utility providers: Hydro (electric), gas, and internet/cable accounts vary by street. Final meter reads are standard in Georgetown but timing for final bills can lag.
Bottom line: local billing timing and who bills you matters. Don’t wing it.
Who does the math — and when it gets locked in
- Your lawyer or closing agent prepares the Statement of Adjustments 24–72 hours before closing. They use the closing date, last tax/utility bills, and known credits for deposits or prepaid amounts.
- Final bills that arrive after closing can create follow-up adjustments. That’s normal. Your lawyer will handle enforcement if a buyer owes money later.
Step-by-step seller checklist for taxes adjustments (do this now)
- Pull your most recent property tax notice from the Town of Halton Hills. Check the billed amount, billing period, and payment dates.
- Identify what you’ve already paid this year. Keep receipts or online screenshots.
- Share copies of tax notices and payment receipts with your lawyer and listing agent at the start of the sale process.
- Confirm the expected closing date in writing. The closing date decides how many days you owe or are owed.
- Expect your lawyer to prorate taxes on a per-day basis. They’ll use a 365- or 366-day year depending on the calendar.
- Confirm if there is an outstanding prior-year charge, tax arrears, or local improvement levy — these affect your payout.
Example calculation (real numbers, simple):
- Annual municipal property tax: $3,650
- Closing date: July 1 (seller owns Jan 1–Jun 30 = 181 days)
- Seller’s share = $3,650 × (181 / 365) = $1,809.50
- If seller already paid $3,650 in instalments, buyer owes seller $1,809.50 at closing.
Make the lawyer’s life easy: deliver clean, dated proof of tax payments early.
Step-by-step seller checklist for utilities adjustments
- Contact every utility account immediately: hydro, gas, water, sewer, waste pick-up, internet/cable. Tell them the closing date and provide the new owner’s details if you have them.
- Arrange a final meter reading on closing day. If meter reading isn’t possible, get the last bill and have your lawyer prorate by days.
- Cancel or transfer services. Keep final bills for closing and for your records.
- Provide account numbers and copies of final bills to your lawyer and the buyer’s agent.
Practical example: Hydro bill shows $120 for 60 days ending June 20. Closing is June 1. Daily rate = $2.00. Buyer owes seller $40 (20 days × $2.00). Simple.
Common issues and how to prevent them (do these now)
- Final bill arrives late: Keep proof you requested final meter reads and copies of the last bills. Your lawyer can chase adjustments after closing.
- Utility deposits: Some utilities hold deposits refundable to the final account holder. Document them. If you paid a deposit, make sure it shows on the Statement of Adjustments.
- Condo fees: If you sell a condo, maintenance fees are prorated differently. Provide the condo status certificate early.
- Tenant-occupied homes: Include tenant occupancy and lease details. Deposits, unpaid utility bills, and final reads must align with the tenancy agreement.
The Statement of Adjustments — what to expect and how to read it
This is the single document that translates bills into dollars at closing. It lists:
- Purchase price and deposit
- Property tax adjustments (credit or debit)
- Utility adjustments (credit or debit)
- Condo fees, local improvements, special levies
- Outstanding municipal charges or fines
Check the Statement line-by-line. Ask questions. Don’t sign until every line is clear.
Negotiation strategy: use adjustments to protect your net proceeds
- Price vs adjustments: Buyers may try to renegotiate after seeing final bills. Prevent that with solid records and by including clear adjustments language in the offer.
- Closing date control: If you can choose your closing date, pick one that limits outstanding bills or aligns with when you’ve paid taxes.
- Ask for utility final reads to be done the morning of closing. No surprises.
Moving day and transfer tasks that prevent post-closing headaches
- Request final meter reads and take your own photos of meter readings with timestamps.
- Transfer or cancel utilities and keep confirmation emails.
- Forward your mail with Canada Post and confirm address changes for billing entities.
- Leave receipts and a folder of last bills in the house for the buyer.
These small steps stop months of back-and-forth and keep your closing clean.
Why local expertise matters — and how the right agent changes your outcome
Georgetown’s local billing patterns and municipal procedures create a repeatable system. An agent who knows Halton Hills, local utility quirks, and common closing pitfalls will save you money and time. They make sure the right documents and reads are requested early. They nudge the lawyer for accurate statements. They prevent buyers from using timing gaps as leverage.
Tony Sousa is the local Realtor who handles this for Georgetown sellers every day. He ensures your tax notices, utility accounts, final reads, and the Statement of Adjustments are aligned before closing — not after. That prevents surprises and protects your net proceeds.
Contact: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
Final checklist — What to give your lawyer 7–14 days before closing
- Copy of most recent property tax notices and receipts
- Last 3 bills for hydro, gas, water, and any condo/municipal utilities
- Proof of utility deposits paid
- Tenant information (if applicable)
- Any pending municipal notices or local improvement bills
Deliver these early. Delay costs you money.
FAQ — Quick answers for Georgetown sellers
Q: Who pays the property taxes at closing?
A: The seller pays taxes for the period they owned the property. The buyer pays for the period after closing. The lawyer prorates taxes on the Statement of Adjustments so the seller is credited for any prepayment.
Q: What about the land transfer tax?
A: The buyer pays land transfer tax. It is not part of the seller’s adjustments.
Q: How are hydro and gas adjusted?
A: Ideally by final meter read on closing day. If not possible, lawyers prorate using the last bill’s daily rate.
Q: A municipal bill arrives after closing. Who pays?
A: If it covers a period before closing, the buyer owes the seller. If the buyer already paid the bill, the buyer should be credited or the seller’s lawyer should collect the amount through post-closing adjustments.
Q: What if I didn’t get a final meter reading?
A: Use your last bill to prorate and keep proof you requested a final reading. Your lawyer will handle subsequent corrections.
Q: Do condo fees get adjusted?
A: Yes. Condo common expenses are prorated. Provide the condo status certificate early so the lawyer has accurate figures.
Q: How long until adjustments are finalized?
A: Most adjustments are final at closing. Items that arrive late (like final utility invoices) may require post-closing follow-up, but this is typically resolved within 30–90 days.
Q: How do I avoid disputes?
A: Provide clean documents, request final meter reads, keep receipts, and work with a local agent and lawyer who know Georgetown timelines.
Closing is a math problem. Do the work. Deliver the papers. Get the reads. Let your lawyer finalize the Statement of Adjustments. That’s the fast route to a clean closing and the highest net proceeds.
If you want a partner who handles the details for Georgetown sellers every day, call or email for a free closing-prep checklist tailored to your property.
Tony Sousa — tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
