REAL ESTATE LAW DOCUMENTS
REAL ESTATE LAW DOCUMENTS
In a series of blog posts I discussed the agreement of purchase and sale.
In this blog post I will briefly discuss the Statement of Adjustments
WHAT IS A STATEMENT OF ADJUSTMENTS
The seller’s real estate lawyer
In a real estate home closing the real estate lawyer acting for the seller will prepare a document entitled Statement of Adjustments. I have briefly discussed this document in a previous post entitled, Real Estate Law. Do the Math!
A good real estate lawyer will have his or her clients review the Statement of Adjustments with their client for accuracy.
The main purpose of this document is to identify the final sum of funds that the seller’s real estate lawyer will require on the day of closing.
The purchaser’s real estate lawyer
The Statement of Adjustments will be forwarded to the purchaser’s real estate lawyer who will then review it with his or her client for accuracy.
Generally, at my law office I will email the document directly to my clients prior to closing and seek their approval. Again another reason why its good to do the math in advance.
HOW MUCH MONEY WILL BE NEEDED
Many real estate law offices will use special software designed for real estate closings. This software will complete the calculations. However, in its most basic form the Statement of Adjustments will identify the purchase price minus the deposit. It will then provide for the property taxes the seller has paid out up to the date of closing. It will identify what portion is remaining for property taxes for the year.
In the case of condos there can be an additional line for common expenses.
If you don’t understand the Statement of Adjustments ask your lawyer. Remember, its good to know the exact number so there are no surprises on the day of closing.
REAL ESTATE LAWYER NEAR ME
Call my office to speak with a Burlington Real Estate Lawyer 416-505-4901
anytime for a free consultation