An Agreement of Purchase and Sale states
that the balance of the purchase price on the closing date will be paid
by cash or by certified cheque subject to the usual adjustments.
The certified cheque required from purchasers by the law office for closing
will include any such ADJUSTMENTS payable on closing.
ADJUSTMENTS BETWEEN PURCHASER
AND VENDOR (RESALE):
On a resale home, adjustments consist of items already prepaid beyond
the closing date by the seller that benefit the purchaser after the closing
date, which are pro-rated, and a credit is given to the seller as an adjustment
on closing. Some examples of closing adjustments on a resale home are
for prepaid realty taxes, prepaid condominium fees (if the property purchased
is a condominium), and fuel oil (if property has an oil furnace).
ADJUSTMENTS BETWEEN PURCHASER
AND BUILDER (NEW CONSTRUCTION):
On a new home purchased from a builder, closing adjustments are greater
than on a resale home since adjustments (when buying from a builder) can
include hydro and water meter installation costs, Tarion New Home Warranty
Enrolment Fee, boulevard tree planting, driveway paving, grading deposit,
gas water heater, educational lot levy, municipally required fencing (if
needed) and many other items which are not normally adjusted when one
buys a resale property.
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