What is the seller’s statement of adjustments?
Selling a House in Georgetown? Read This About the Seller’s Statement of Adjustments — Don’t Close Blind!
What is the seller’s statement of adjustments?
The seller’s statement of adjustments is a simple paper that adds up who owes what on closing day. It shows money the seller must pay and money the buyer must pay. It lists the sale price, deposits, taxes, condo fees, utility charges, commissions, lawyer fees, and other money items. The goal is to make the final money exchange fair.
This is not a bill. It is a final count. Lawyers or closing agents prepare it. You see it before you sign. You check it. You fix mistakes before money moves.
Why it matters to home sellers in Georgetown, ON
If you sell a home in Georgetown, you want clean money at closing. Georgetown is in Halton Hills. Taxes, utilities, and fees get billed by local agencies. The seller’s statement of adjustments makes sure you only pay for the days you owned the house. It stops surprises. It prevents underpayment or overpayment on taxes and condo fees. It tells you how much cash you will walk away with.
For sellers in Georgetown this matters because:
- Property tax rates and due dates are set by Halton Region and the Town of Halton Hills. The statement proratess these taxes to the closing date.
- Local utilities or water charges may be billed differently. The adjustment covers meter-read timing or estimated reads.
- Condo or neighborhood fees get proratated if you sell a condo or townhome in the area.
Who prepares the statement?
A real estate lawyer or a licensed closing agent prepares the statement. In Ontario, lawyers handle closing paperwork. Your lawyer will collect numbers from the buyer’s lawyer, the municipality, and your realtor. They then make the statement and send it to you to review.
What does the statement include? (Simple list)
- Sale price of the home
- Deposit paid earlier (credit to seller)
- Property tax adjustments (prorated to closing date)
- Utilities and water charges (prorated or final read)
- Condo fees or maintenance fees (if applicable)
- Hydro or gas bills, if pre-paid or estimated
- Rent or security deposits, if the property has tenants
- Real estate commission (usually paid by seller)
- Mortgage payoff amount and penalties (if any)
- Lawyer fees and registration fees
- Any other credits or debits agreed in the purchase agreement
How the math works — plain example
You sell for $700,000. You paid a $20,000 deposit. Property taxes for the year are $4,000 and are billed for the whole year. The closing date is July 1 (half the year).
- Sale price: $700,000 (credit to seller)
- Deposit already paid: $20,000 (credit to seller)
- Property tax adjustment: seller paid full year $4,000 earlier. Buyer will own the house for half the year. Buyer owes seller $2,000.
- Real estate commission and lawyer fees: listed as debits to seller.
The statement lists credits and debits and shows net proceeds. That net is what you, the seller, get at closing.
Common adjustments for Georgetown sellers
- Property taxes: prorated from Jan 1 to closing or based on the municipality’s billed period.
- Utilities: sometimes estimated. Best practice is to get a final meter read before closing.
- Water and sewer: Halton Region or local utility fees may be billed differently — lawyer will prorate.
- Condo fees: must be adjusted. Also, check for arrears and special assessments in the status certificate.
- Closing date costs: if you close earlier or later than expected, adjustments change.
Who pays what? Simple rules
- Seller pays: real estate commission, mortgage payout, any seller closing costs unless the agreement says otherwise.
- Buyer pays: balance of purchase price and any buyer closing costs.
- Shared or prorated items: taxes, utilities, condo fees — split based on days of ownership.
The statement shows these as credits and debits so both sides see the exact amounts.
Mistakes to watch for
- Wrong closing date used for prorations.
- Using old tax amounts instead of the current municipal bill.
- Not accounting for condo special assessments or arrears.
- Utility bills estimated but never finalized.
- Commission or legal fees entered incorrectly.
Fix errors before closing. Once funds transfer, fixing mistakes takes extra time and can be costly.
How long before closing will you see it?
You should receive the seller’s statement of adjustments a few days before closing. Sometimes it comes 24–72 hours ahead. Review it right away. Ask your lawyer or realtor for a clear walkthrough.
Can you change numbers on the statement?
Yes, but only with proof or agreement. If you spot a mistake, tell your lawyer. If the buyer and seller both agree to a change, your lawyers update the statement. Don’t sign off without understanding every line.
Local tips for Georgetown sellers (quick wins)
- Get a final meter read and keep the receipt.
- Order the status certificate early if you sell a condo.
- Ask your lawyer for a payoff letter from your mortgage lender before closing.
- Ask your realtor to confirm the date for proration calculations.
- Keep all receipts for pre-paid taxes, repairs, or warranties to show during closing.
Why a clear statement protects you
A clear seller’s statement of adjustments protects your money. It shows your net proceeds. It also protects you from future claims. If everything is listed and agreed at closing, buyers have less to dispute later.
Quick checklist before you close
- Confirm closing date and time
- Request final meter reads for utilities
- Get mortgage payoff figure from lender
- Review the status certificate for condo sales
- Ask your lawyer to send the seller’s statement at least 48 hours before closing
- Review for taxes, condo fees, utilities, and commissions
Closing day — what to expect
On closing day, your lawyer will:
- Compare the signed statement of adjustments from both sides
- Arrange funds transfer
- Register the transfer of title with the land registry
- Pay off your mortgage and commissions
- Send you the net proceeds
You will sign closing documents. Your lawyer will walk you through any last items.
Final thoughts for Georgetown home sellers
The seller’s statement of adjustments is the money map for closing day. Learn to read it. Ask questions. Use local experts who know Halton Hills rules. A clear statement means you leave closing with the right money and no surprises.
If you want a straight answer and help with real local numbers, contact a local Georgetown real estate expert. They can review your statement and help you get your money right.
Contact for local help: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Seller’s Statement of Adjustments and Legal Paperwork in Georgetown
Q: Who prepares the seller’s statement of adjustments?
A: A real estate lawyer or closing agent usually prepares it in Ontario. Your realtor collects details. Lawyers exchange numbers before closing.
Q: When will I get the statement?
A: Usually 24–72 hours before closing. Ask your lawyer to send it earlier if possible.
Q: What if I disagree with an entry?
A: Tell your lawyer right away. Provide proof. Lawyers will correct and reissue the statement. Don’t sign until you understand the change.
Q: Does the statement include real estate commission?
A: Yes. In most Ontario sales, the seller pays the commission and it appears as a debit on the statement.
Q: Who pays property taxes on closing day?
A: Taxes are prorated. The seller pays for days they owned the property. The buyer pays for days after closing.
Q: Are utility bills adjusted?
A: Yes. Utilities are prorated or adjusted based on final reads or estimates.
Q: Does HST apply to resale homes?
A: Generally no for resale homes that are not substantially renovated or newly built. HST rules can be complex. Ask your lawyer if you sell a new build or a converted property.
Q: What if my mortgage has a penalty for early payout?
A: That penalty shows as a debit on the statement. Ask your lender for a payoff figure early.
Q: Do I need a lawyer for closing in Georgetown?
A: Yes. In Ontario, lawyers handle title transfer and closing paperwork. A lawyer protects you and prepares the statement.
Q: Can the buyer and seller close on different days?
A: Both sides must agree to a closing date. If dates change, adjustments change too. The statement will update.
Q: How can I avoid surprises on the statement?
A: Get final meter reads, confirm mortgage payoff, order condo status certificate if needed, and review the statement early.
Q: Who keeps a copy of the statement?
A: Both buyer and seller get copies. Your lawyer keeps a file and provides your copy.
Q: What if a mistake appears after closing?
A: Contact your lawyer immediately. Corrections are possible, but they take time. Avoid this by reviewing before closing.
Q: How are condo fees handled?
A: Condo fees are prorated. Check the status certificate for the current balances and special assessments.
Q: Where do I get help with the statement?
A: Ask your real estate agent and your lawyer. For Georgetown-specific help, contact the local expert below.
Contact: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
