Can fuel oil or propane be adjusted on a statement of adjustments in Ontario?

Yes, prepaid fuel oil or propane that remains in a tank at the property can be adjusted on the statement of adjustments in Ontario. If the seller has paid to fill a heating oil tank or propane tank and there is fuel remaining at the time of closing, that fuel has value and the buyer is receiving it as part of the property.

The adjustment works by estimating or measuring the amount of fuel in the tank at the time of closing and crediting the seller for its value based on the current price per litre or unit. This is a credit to the seller on the statement of adjustments. It is practical and fair — the seller paid for the fuel, and the buyer will benefit from it.

Your real estate agent or lawyer may arrange for a reading of the fuel level near the closing date. If the agreement of purchase and sale is silent on fuel adjustments, practice in Ontario is generally to adjust for any fuel in the tank. This is a relatively modest item in dollar terms for most residential properties, but it should be itemized and not overlooked. Ask your lawyer to confirm how fuel will be handled in your specific deal.