What is the seller’s statement of adjustments?

What is the seller’s statement of adjustments?

Don’t sign the papers until you’ve read this: what is a seller’s statement of adjustments?

Fast answer

A seller’s statement of adjustments is the clear, line-by-line tally of who pays what at closing. It shows the sale price, credits, prorated items, and final net proceeds to the seller. Think of it as the closing receipt for a home sale.

Why this matters

If you want the exact cash you expect at closing, this document matters more than promises. Mistakes here change your proceeds. Agents, lawyers, and lenders rely on it to settle money the day keys change hands.

What’s included (short checklist)

• Sale price and deposit credited to buyer
• Adjustments for property taxes (prorated)
• Utility and heating charges (prorated)
• Condo fees and common expenses (if applicable)
• Mortgage payoff and any discharge fees
• Real estate commissions and HST where applicable
• Closing costs charged by lawyers or notaries
• Miscellaneous credits or debits (repairs, adjustments agreed in contract)

How the math works — simple rules

• Prorations are based on the closing date. If you paid property tax for the full year, the buyer reimburses you for the unused portion after closing. If buyer pays, seller owes.
• Credit to buyer equals deposit plus any adjustments in buyer’s favour.
• Seller net proceeds equal sale price minus mortgage payoff, commissions, and seller debits, plus any credits owed to seller.

Legal and paperwork points every seller must know

• The statement is usually prepared by the closing lawyer or your realtor in draft form and finalized by the lawyer. It becomes part of closing documentation.
• Accuracy matters: your lawyer confirms mortgage payouts, lien searches, and discharges. Errors can delay closing or change net proceeds.
• Keep receipts and utility statements. Final utility readings and municipal tax notices can alter numbers.
• If the property is sold through a trust or has special taxes, additional adjustments may appear.

Common problems and how to avoid them

• Wrong proration date: confirm closing date in writing.
• Missed liens or unpaid bills: run a final title and lien search with your lawyer.
• Utilities left on in seller’s name: arrange final reads and payments.
• Incorrect mortgage payoff: request a payoff statement from your lender before closing.

Quick action plan for sellers

• Ask for a draft statement of adjustments at least 48–72 hours before closing.
• Review line-by-line. Don’t rely on totals alone.
• Raise questions immediately with your lawyer or agent.
• Confirm final mortgage payoff and closing funds.

Need help reviewing your statement of adjustments?

I review and explain every line so you get the exact cash you expect. Email [email protected] or call 416-477-2620. Visit https://www.sousasells.ca for local guidance and a fast review.

Clear, legal, and numbers-first: that’s how you close without surprises.