How are per-diem adjustments calculated on a closing statement in Ontario?

Per-diem (per-day) adjustments in Ontario real estate closings are calculated by dividing the annual or monthly amount of the item being adjusted by the number of days in the relevant period, then multiplying by the number of days being credited or debited to each party.

For property taxes, the annual tax amount is divided by 365 (or 366 in a leap year) to get the daily rate. That daily rate is multiplied by the number of days the seller owned the property in the tax year to determine the seller's portion, and the remainder is the buyer's portion. If the seller's portion exceeds what has already been paid, the seller owes a credit to the buyer; if the seller has overpaid, the buyer owes a credit to the seller.

The closing date convention in Ontario treats the closing date itself as the buyer's day — meaning the seller is responsible through and including the day before closing, and the buyer takes over from closing day. This is the conventional approach, though the agreement of purchase and sale or local practice can vary. Your lawyer will identify the correct convention and apply it consistently across all per-diem adjustments on your statement.