Statement of Adjustments

Summary

This precedent is a simple form of a "Statement of Adjustments" for a real estate transaction. The Statement sets out the final amount of payment which the Purchaser will have to provide on the closing date to fulfill the amount due under the Agreement of Purchase and Sale. The final amount due on closing will factor in the deposits paid together with realty taxes and other pre-paid amounts which run with the land. This precedent contains practical guidance and drafting notes. The Statement of Adjustments introduces some accounting work into the field of Real Estate Law. The final amount which a Purchaser will have to provide to the Vendor's Solicitor (or otherwise if re-directed) is calculated and summarized for both parties to review. At the very least, the amounts paid by the Purchaser as deposits on entering into the transaction are to be adjusted as a credit in favour of the Purchaser. Other adjustments may include property taxes and pre-paid amounts for utilities and rental ...