Statement of Adjustments in Ontario: How to Read Yours

A few days before closing, you receive a page of figures with headings like credits, debits and adjustments. The total at the bottom may not match what you expected, and that can be unsettling when the amount is large.

The statement of adjustments is a bookkeeping tool. It shows who owes what to whom on the closing date so that each side pays only for the period it owned the property. This article walks through the usual line items and the reasons the numbers move.

What a statement of adjustments does

On a sale, the seller has often already paid some costs for a period that will belong to the buyer, such as property tax. Other amounts may be owing but not yet billed. The statement splits these between the two sides as of the closing date and arrives at a final figure for the balance due on closing.

The items and the way they are calculated come from the agreement of purchase and sale, usually the standard form, rather than from a single statute. If your statement looks different from a friend's, the difference often lies in the contract or the property itself. Your lawyer can match each line to your agreement.

Common line items and what they mean

Property tax adjustments are one of the usual closing costs buyers are told to plan for.

Separately from the statement, when a brokerage holds a buyer's deposit in trust, it first deducts the commission owing. The balance owing to the seller may be released only when the transaction is completed, or with the mutual written consent of both parties.

Why the amount owing may have changed

• The closing date moved, which changes the number of days for tax and utilities.
• A tax bill was issued or corrected after you first estimated your costs.
• Your deposit was applied or adjusted differently than you assumed.
• On a new home, the builder passed along costs. The Tarion enrolment fee is paid by the vendor, and Tarion notes that vendors commonly pass it to buyers in the statement of adjustments. Whether a builder may pass on that fee or other charges depends on your agreement and the Tarion Addendum.
• On a sale, the seller's side may show costs such as a mortgage discharge fee and legal fees, including preparing the statement itself.

If a commission is involved, HST applies to it at the Ontario rate of 13%. Sellers commonly see commission of 2% to 6% of the sale price, and it is negotiable.

Costs that sit outside the statement

Some closing costs are paid separately, so do not expect the statement to show your full cash need. Ask your lawyer for a total that includes everything.

• Land transfer tax is payable when the transfer is tendered for registration, or before then. It is calculated in brackets: 0.5% up to $55,000, 1.0% from $55,000 to $250,000, 1.5% from $250,000 to $400,000 and 2.0% above $400,000, with 2.5% on the part over $2,000,000 for land with one or two single family residences. On $400,000, the total is $4,475.
• The value used includes the price, liabilities assumed, benefits conferred, soft costs and upgrades, but not HST paid on the price.
• Eligible first-time buyers may get a refund of up to $4,000, which can be claimed at registration through the electronic affidavit.
• Registering an instrument electronically costs $85.00 as of November 3, 2025, though fees can change.
• Toronto adds its own municipal land transfer tax, so a Toronto purchase needs a separate calculation.

Buyers are told to budget 1.5% to 4% of the purchase price for all closing costs.

What to do before closing

• Compare the statement with your agreement of purchase and sale, line by line.
• Ask your lawyer to explain any figure you cannot trace to the contract.
• Check the closing date used for each adjustment.
• Confirm the deposit amount credited matches what you paid.
• Ask for a full list of funds needed, including tax, registration and other costs outside the statement.
• Raise questions early, since corrections are easier before closing day.

Frequently asked questions