Does the agreement of purchase and sale affect what gets adjusted at closing in Ontario?

Yes, the agreement of purchase and sale (APS) governs what adjustments are made on the statement of adjustments. The standard Ontario APS form includes provisions stating that the parties adjust for taxes, local improvement rates, and unmetered public or private utility charges, among other things. It also specifies how the closing date is treated for adjustment purposes.

Adjustments that are not addressed in the APS may be negotiated between the parties or left to the standard conventions that Ontario lawyers apply by practice. For example, the treatment of fuel oil or specific utility prepayments may depend on whether the APS is silent, includes a specific clause, or refers to standard adjustments only.

If you are purchasing a property with unusual features — like a shared utility arrangement, a rent-to-own component, a vendor take-back mortgage, or a specific allocation of closing costs between buyer and seller — the APS should address those clearly. Ambiguities in the APS can become disputes at the closing table. Your lawyer should review the APS before you sign it, not just at closing. Early legal review allows you to add, remove, or clarify adjustment provisions before you are bound by the terms.