Re-Sale Homes

In most Agreements of Purchase and Sale you will note that the purchase price will be paid by bank draft or certified cheque, "subject to the usual adjustments".

Usual adjustments are items that have been prepaid or unpaid that benefit one party or the other after closing. On a re-sale home, adjustments on closing may consist the following items:

    * Realty taxes
    * Condominium expenses
    * Fuel oil/propane
    * Tenancies
    * Land lease payments
    * Mortgage assumed

These items are prorated and a credit is given to the seller or the buyer as an adjustment on closing.
 

Builder Homes

When purchasing a new home from a Builder, you should be aware that there will be extra costs involved. These costs may not be clearly set out at the time of entering into the contract. We recommend that you clarify these charges when negotiating your contract, if they have not already been predetermined. The following are some of the typical adjustments you will find in a builders Agreement of Purchase and Sale:

    * Ontario New Home Warranty Program enrollment fee
    * Educational lot levy
    * Driveway paving
    * Hydro and Water Meter installations
    * Tree planting
    * Subdivision damage deposit
    * Subdivision grading deposit
    * Legal fees relating to any mortgages arranged through builder
    * Vendor's lawyer insurance levy surcharge
    * HST on extras and appliances
    * Realty tax deposit
 

Caution on statement of adjustment

These adjustments can add several thousands of dollars to your closing costs and if not properly reviewed and capped by your Lawyer the final amount can not be known or controlled!