Closing statement that reconciles the purchase price, deposit, taxes, credits, and debits.
A statement of adjustments is a closing document that shows how the purchase price is adjusted between the buyer and seller for items such as deposits, prepaid expenses, or amounts that need to be reimbursed on closing.
This document helps explain the final cash figure the buyer must bring to close. It turns the broad idea of closing costs into a deal-specific number.
Canadian lawyers or notaries commonly use the statement of adjustments to account for things like the deposit already paid, property tax adjustments, condo fee adjustments, fuel adjustments, or other contract-specific items. The form and detail level can vary by province and professional workflow.
| Line item | How it usually affects the buyer | Why it appears |
|---|---|---|
| Purchase price | Increases the amount due | It is the base transaction amount. |
| Deposit already paid | Reduces the amount still due | The buyer gets credit for money already delivered. |
| Property tax adjustment | May increase or reduce the amount due | Buyer and seller are sharing a tax period based on the closing date. |
| Condo fee adjustment | May increase or reduce the amount due | Monthly fees may already have been paid by one side. |
| Fuel or utility adjustment | May increase the amount due | Some properties transfer with prepaid fuel or other consumables. |
| Other contract-specific credits or debits | Depends on the agreement | The purchase contract can require special adjustments. |
Suppose the purchase price is $700,000 and the buyer already paid a $25,000 deposit. If the seller also prepaid $900 of property taxes covering the period after closing, the statement of adjustments may credit the deposit to the buyer but add the $900 reimbursement back as an amount still owing. That is why the statement matters more than the headline purchase price alone.
The statement of adjustments is not the mortgage contract. It is part of the closing math around the purchase.
Borrowers also sometimes assume all adjustment documents will look identical. In practice, layout and terminology vary across lawyers, notaries, provinces, and transaction types.
Adjustment items depend on the purchase agreement, local practice, and the actual timing of closing. Not every file will contain the same line items.