What you need to know about statement of adjustment

Real estate lawyer for the seller will put together a document called statement of adjustment, which is basically a balance sheet that has a list of all the adjustments that need to be made to the purchase price. After these adjustments are calculated a final amount that the purchaser must pay can be determined.

In the statement of adjustment, the seller receives credit for the sale price and the amount of money that he or she might have prepaid for expenses that should be passed on to the purchaser. For example, if the seller has paid property taxes for the year that the buyer will be occupying the property, the seller will get credited for the overpayment.

On this balance sheet the buyer receives credit for things such as the deposit that was made previously and for any underpayment that the seller might have made in relation to the utilities, property taxes or any other expenses. Other expenses such as accounts between the seller and tenants are also adjusted through a statement of adjustment. If you believe that you overpaid for expenses that were not adjusted please contact a real estate lawyer in Mississauga.