Definition
Closing adjustments (or notarial adjustments) are reimbursements calculated by the notary to balance charges already paid by the seller beyond the possession date, and charges not yet paid that the buyer will assume.
Typical adjustments include:
- **Property taxes**: if the seller prepaid them for the year, the buyer reimburses their pro-rated share from the possession date. If taxes are in arrears, the seller pays their share. - **Fuel (heating oil, propane)**: the notary measures the tank before closing. The buyer pays the seller for the remaining fuel value. - **Condo fees**: prepaid monthly condo charges are adjusted pro-rata. - **Advance rents received** (income property): the seller reimburses the portion of rents corresponding to the post-possession period.
These adjustments can total from a few hundred to a few thousand dollars, depending on the time of year and property type.