Statement of Adjustments on an Ottawa Real Estate Closing: What to Review

Published October 11, 2026 · Meysami Law Professional Corp. · Ottawa

The statement of adjustments is a closing account that starts with the purchase price and shows agreed credits and adjustments between buyer and seller. It helps calculate the balance payable on closing, but it should be read with the Agreement of Purchase and Sale, amendments, tax information and other transaction documents. Ottawa buyers and sellers should review the entries rather than treating the final number as self-explanatory.

Confirm the transaction details first

Check the property address, buyer and seller names, purchase price, closing date and deposit credit. Compare each item with the signed agreement and amendments. If an amendment changed the price, deposit, closing date, chattel allocation or another financial term, make sure the closing statement reflects the final documents rather than an earlier version.

Understand debits, credits and adjustments

A debit generally increases what a party must account for, while a credit generally reduces it or recognizes an amount already paid or owing to that party. The direction of an entry depends on whether the statement is prepared from the buyer's or seller's perspective. Ask about any description, date range or calculation that is unclear.

Review the Ottawa property-tax calculation

The City of Ottawa issues an interim bill and a final bill. The interim bill is a payment on account rather than a bill for a defined part of the year, and the final bill covers the calendar year after crediting the interim amount. On a sale, the lawyers are responsible for adjusting property taxes between buyer and seller. Confirm which bill and payments were available, the adjustment date and who receives the credit.

Ask about tax or water information still outstanding

The City offers tax certificates to identify outstanding property taxes at a real estate closing and water utility certificates to identify outstanding water charges. Whether a certificate is ordered and how a charge is handled depend on the transaction and instructions. New construction or improvements can also produce supplemental or omitted tax bills after the regular bills, so ask how that risk is addressed.

Separate adjustments from the buyer's other closing costs

The statement may calculate the contractual balance between buyer and seller, but it is not necessarily a complete list of the buyer's cash requirements. Ontario land transfer tax, legal fees, title insurance, registration charges, lender requirements and transaction-specific disbursements may appear elsewhere in the lawyer's reporting or trust ledger. Review the complete funds request, not only the statement of adjustments.

Resolve questions before transferring closing funds

Compare the statement with the agreement, deposit receipt, tax information and any promised credit. Ask the lawyer to explain unusual prorations, duplicate-looking entries or an estimate that may later be reconciled. Verify payment instructions through a trusted channel before sending funds, and keep the final statement with the closing report for future reference.

This article is general information as of October 11, 2026, not legal, tax or financial advice. Rules and circumstances can change. Contacting the firm does not create a lawyer-client relationship.