Statement of Adjustments

A Statement of Adjustments is a document prepared by the conveyancing lawyer or notary that provides the detailed financial breakdown of a real estate transaction, showing the purchase price, deposit credits, property tax adjustments, strata fee adjustments (if applicable), and other costs or credits. It calculates the exact balance the buyer must pay on the completion date. Under the Land Title Act, RSBC 1996, c. 250, and through common conveyancing practice in BC, this document ensures both parties understand all financial adjustments at closing. Verify the specific format and inclusions with your BC lawyer or notary, as practices may vary.

In British Columbia, the Statement of Adjustments is typically prepared by the buyer's lawyer or notary public who is handling the conveyancing. Under BC's Legal Profession Act and Notaries Act, both lawyers and notaries are authorized to provide real estate conveyancing services, including preparing financial closing documents. The seller's lawyer or notary reviews and agrees to the adjustments before completion. Verify which professional is preparing your Statement of Adjustments and confirm all amounts before signing.

Property taxes in BC are assessed and paid annually, but ownership changes partway through the tax year, so taxes must be apportioned between buyer and seller based on the number of days each party owns the property. If the seller has already paid the full year's property taxes, the buyer reimburses the seller for the portion covering the period after the completion date; if taxes are unpaid, the buyer receives a credit. This practice reflects fairness and is a standard part of BC real estate conveyancing. Verify the exact tax amounts and payment status with your lawyer or notary before completion.

Under the Strata Property Act, SBC 1998, c. 43, strata fees (monthly maintenance fees paid to a strata corporation) are typically paid in advance by the owner. If the seller has prepaid strata fees beyond the completion date, the buyer reimburses the seller on a per-diem basis for the days the buyer will own the unit but the seller has already paid. The Statement of Adjustments calculates this prorated amount. Verify the current strata fee amount, payment schedule, and any special levies with your lawyer or notary and review the strata's Form B (Information Certificate).

The deposit (usually paid when the Contract of Purchase and Sale is accepted and held in trust by the seller's brokerage or lawyer/notary) is credited to the buyer on the Statement of Adjustments, reducing the amount the buyer must pay at completion. Under the Real Estate Services Act (RESA), SBC 2004, c. 42, and the RESA Rules administered by the BC Financial Services Authority (BCFSA), deposits must be held in trust and properly accounted for. Verify the deposit amount, who holds it, and confirm the credit appears correctly on your Statement of Adjustments before completion.

No, the Statement of Adjustments typically does not include Property Transfer Tax (PTT) because PTT is a separate provincial tax paid directly to the BC government under the Property Transfer Tax Act, RSBC 1996, c. 378, and is due before registration of title. The buyer's lawyer or notary calculates the PTT (currently 1% on the first $200,000, 2% on $200,000–$3,000,000, and 3% over $3,000,000, plus any Additional PTT if applicable — as of 2026-07-27 — verify current) and arranges payment separately. Verify your PTT liability, including any available exemptions (First-Time Home Buyer, Newly Built Home), with your BC lawyer or notary.

Legal or notary fees for conveyancing services are usually itemized separately on the lawyer's or notary's final account or invoice, not on the Statement of Adjustments itself, although practices can vary. The Statement of Adjustments focuses on adjustments between buyer and seller (taxes, strata fees, deposit credits, purchase price), while professional fees are between the buyer and their own legal representative. Verify all fees, disbursements, and the format of your final accounting with your BC lawyer or notary before completion.

The 'balance due on completion' is the final amount the buyer must pay (usually by bank draft, certified cheque, or wire transfer) to complete the purchase, after all credits (deposit, any seller contributions) and debits (purchase price, prorated taxes, fees) are calculated. This figure represents the exact funds the buyer must deliver to their lawyer or notary on or before the completion date specified in the Contract of Purchase and Sale. Verify the balance due, acceptable payment methods, and timing with your BC lawyer or notary well in advance of the completion date.

Yes, the Statement of Adjustments may include adjustments for other prepaid or shared costs, such as fuel oil in a tank, water or utility deposits, prepaid insurance (if assumed), or rental income if the property has tenants (prorated under the Residential Tenancy Act, SBC 2002, c. 78, if applicable). Any item agreed to in the Contract of Purchase and Sale or required by law to be apportioned will appear on the statement. Verify that all adjustments reflect the terms of your contract and current amounts with your BC lawyer or notary.

The Statement of Adjustments is typically provided by the buyer's lawyer or notary a few days before the completion date, giving the buyer time to review, arrange final funds, and ask questions. The exact timing depends on the conveyancer's practice and the complexity of the transaction. Verify the expected delivery date of your Statement of Adjustments with your BC lawyer or notary early in the transaction, and review it carefully as soon as you receive it to ensure all amounts and adjustments are correct.