What common errors appear on statements of adjustments in Ontario closings?

While Ontario real estate lawyers prepare statements of adjustments carefully, errors do occur. Catching them before funds are exchanged protects both parties. Your lawyer reviews the statement before you pay, but it helps to know what to watch for.

The most common errors involve property tax calculations — using the wrong tax year, applying an incorrect total tax amount, or failing to account for a supplementary tax bill. Condo deals frequently see errors in maintenance fee amounts, particularly if fees changed during the year or the seller did not disclose an increase. Rent adjustments on income properties sometimes miss units, apply the wrong rent, or fail to include accrued interest on last month's rent deposits.

Occasionally there are mathematical errors in the per-diem calculations — using the wrong number of days, a leap year miscalculation, or applying the wrong convention for the closing date. Title searches sometimes uncover outstanding property tax arrears that were not reflected in the initial statement. Your lawyer's job is to catch all of these before you close, but you can assist by providing accurate information — your tax bills, condo fee notices, lease agreements, and fuel receipts — well in advance.