Do utilities get adjusted at closing like property taxes do?

Unlike property taxes, utility accounts — hydro, gas, water — are typically not adjusted on a statement of adjustments in Ontario residential purchases. Instead, each utility is treated as a separate account in the name of the account holder, and the practice is for the seller to arrange final meter readings and close their accounts, while the buyer opens new accounts in their name effective on the closing date.

Your real estate lawyer will remind you to contact utility providers in advance of closing to arrange the account transfer. Sellers are responsible for any utility charges up to and including the closing date, and buyers take over from the day they become owners.

One exception is situations where the property has a shared well, septic system, or other utility arrangement that cannot simply be switched into a new name — those situations sometimes do require negotiated adjustments. Condominium purchases may also involve adjustments for common expense fees (condo maintenance fees) that are prepaid or in arrears. Your lawyer will flag any utility-related adjustments that do apply to your specific transaction and include them on the statement of adjustments if necessary.