Statement of Adjustments in Ontario: How to Read Yours

By Irina Marchenkova, Sales Representative, RE/MAX Realtron Realty · Last updated October 2026

A few days before closing, your lawyer will show you a document called the statement of adjustments. It’s the final tally of the deal: the purchase price, minus your deposit, plus or minus costs that the buyer and seller split as of the closing date. It tells you exactly how much money you need to bring. Here’s how to read one, with an Ontario example.

What is a statement of adjustments?

Some costs of owning a home are paid ahead for a period that runs past closing day. Property tax is the classic example: if the seller has already paid the full year’s tax, the buyer reimburses them for the days after closing. The statement of adjustments lists each of these items so that both sides pay exactly their share, calculated to the closing date.

What’s on a statement of adjustments in Ontario?

• Sale price: credited to the seller.
• Deposit: credited to the buyer.
• Property taxes: adjusted based on what the seller has paid for the year.
• Utilities: mainly water, where billed to the property, and any prepaid fuel oil or propane.
• Condo common expenses: if the seller has paid the month’s condo fees, the buyer reimburses the days after closing.
• Rent and tenant deposits: for tenanted properties, the last month’s rent deposit and prepaid rent are credited to the buyer.
• Balance due on closing: the amount the buyer must pay.

Example: statement of adjustments for a resale home

Closing on June 30, 2026 for a home priced at $800,000. The seller has paid the full 2026 property tax of $5,840 (about $16 a day), and the buyer paid a $40,000 deposit.

Simplified example. Real statements include more items and exact daily calculations.

The buyer pays that balance through their mortgage advance and their own funds, sent to their lawyer before closing. Land transfer tax and legal fees are added on top. See my closing costs guide for those.

Statements of adjustments for new homes

For a new or pre-construction home, the builder’s statement of adjustments is often longer and can contain surprises. Watch for:

• HST and rebates: how the price treats HST and any rebates you assign to the builder. See my GST/HST guide.
• Tarion enrolment fee and utility meter or connection charges.
• Development charges, education levies and other municipal charges passed on to the buyer.
• Occupancy fees and interest for condos with an interim occupancy period.

Many of these depend on caps negotiated in your agreement of purchase and sale, which is why a lawyer should review new-build agreements before you sign.

Questions to ask your lawyer

• Is the property tax adjustment based on actual payments made by the seller?
• Are there any arrears, liens or work orders that should be cleared before closing?
• For condos: are the common expenses up to date, and are there any special assessments?
• For new homes: are all builder charges within the caps in my agreement?

Buying soon? I’ll make sure nothing in your agreement leads to surprises on closing day. Get in touch.

Statement of adjustments FAQ

Who prepares the statement of adjustments in Ontario?

The seller’s lawyer prepares it, and the buyer’s lawyer reviews and approves it before closing.

When do I receive the statement of adjustments?

Usually a few days to a week before closing, when you meet your lawyer to sign documents.

Does the statement of adjustments include land transfer tax?

No. Land transfer tax, legal fees and title insurance appear on your lawyer’s trust ledger or account, separate from the statement of adjustments.

What is the difference between a statement of adjustments and a trust ledger?

The statement of adjustments settles amounts between buyer and seller. The trust ledger shows all money flowing through your lawyer’s trust account, including your mortgage, land transfer tax and fees.

General information, not legal advice. Your lawyer will explain your own statement of adjustments.