By Lev Kramar, Integrity Legal Solutions · Calgary, Alberta
The statement of adjustments is the closing math. It starts with the purchase price, subtracts your deposit, adds credits owed to the seller for costs they prepaid, subtracts credits owed to you, and arrives at one number: the balance you must pay the seller on possession. In Calgary the largest adjustment is almost always property tax, because the full calendar year is due June 30 and taxes are apportioned to the possession date. Ask for the statement several days before signing, not at the signing table.
Three days before possession, your lawyer sends a one-page document with a dozen lines on it and a bolded number at the bottom. That number is what you owe. Most buyers glance at the total, transfer the money, and never look at the rest.
The rest is where the errors live. Here is how to read it.
What is a statement of adjustments?
The statement of adjustments is the accounting that turns a purchase price into a final number. It reconciles what you agreed to pay against what you have already paid, what the seller has prepaid on your behalf, and what closing costs you owe.
Both lawyers prepare one. The buyer’s lawyer and the seller’s lawyer exchange them and reconcile any differences before closing, so both sides are working from the same figures.
It arrives a few days before possession because it cannot be finalized earlier. The tax certificate, the lender’s advance figure, and the condominium estoppel certificate all arrive late in the process, and each one moves the total.
The core structure
Every statement of adjustments follows the same logic:
- Start with the purchase price.
- Subtract the deposit you have already paid, which is normally held in the listing brokerage’s trust account.
- Add or subtract adjustments for costs apportioned between you and the seller.
- The result is the balance due to the seller on closing.
A credit to the seller increases what you owe. A credit to the buyer decreases it.
It DOES NOT include your legal fees or if you are purchasing the net mortgage advance. These are shown on a separate Statement of Funds Received and Disbursed in order to calculate the balance you need to bring to your lawyer.
Property taxes, the line that moves the most money
Calgary property taxes run on a calendar year, January through December, and the full year is due June 30th if you pay annually. Under the standard Alberta residential purchase contract, taxes are adjusted to the possession date, and the seller is responsible for the whole of that day.
How this plays out depends on when you close.
Closing after June 30
The seller has already paid the full year. You reimburse them for the portion of the year you will own the home. On a September 1 possession with $4,200 in annual taxes, you credit the seller roughly $1,400 for September through December.
Closing before June 30
The taxes have not been paid yet, and in the first part of the year the current tax bill has not even been issued. The seller credits you for the portion of the year they owned the home, and you pay the full bill when it arrives. Because the current year’s assessment is unknown, this adjustment is calculated on an estimate based on the prior year.
If the seller is on TIPP
Many Calgary owners pay monthly through the Tax Instalment Payment Plan. TIPP payments are not transferable between properties, and the seller must cancel in writing. The City requires notice by the 22nd of the month before the next withdrawal, otherwise the payment still comes out.
For the first six months of the year TIPP installments are based on the previous year’s assessment, then recalculated from July so the current year is paid in full by December. That structure makes TIPP adjustments easy to get wrong. If your seller was on TIPP, confirm the payments made to date are reflected accurately.
Condominium fee adjustment
Condo contributions are paid monthly in advance. If the seller paid the full month and you take possession mid-month, you credit them for the balance of the month.
Where the estoppel certificate discloses arrears or an outstanding special assessment, the amount is held back from the seller’s proceeds and paid to the corporation. This matters because unpaid contributions attach to the unit, not to the former owner. Without the holdback, you inherit the debt.
Other common adjustments
- Utilities are usually not adjusted. Sellers cancel for the exact date of the sale and buyers sign up as of that day.
- Rent and security deposits, where you are buying a tenanted property. The deposit plus accrued interest transfers to you.
- Homeowners association fees, common in newer Calgary communities and separate from condo fees.
- Lease payments or ground rent, on a leasehold property where rent is payable rather than prepaid.
- GST and the GST rebate, on a new build.
- Builder adjustments on a new home, which can include utility hookups, landscaping deposits, and supplementary property tax charges.
What to check before you send the money
- The purchase price matches the contract, including every amendment.
- Your deposit is credited, in the correct amount.
- The mortgage advance matches your commitment, net of any lender fees deducted at source.
- The property tax adjustment uses the actual annual tax figure and the correct possession date.
- On a condo, the fee adjustment matches the estoppel certificate and any arrears are held back.
- You can identify what every line is. If you cannot, ask. Your lawyer should be able to explain how any adjustment was calculated and why.
How to send your funds
The balance is due before possession, not on it. Most firms ask for funds two to three business days ahead so they clear in time to be released on the possession date.
Personal cheques are not accepted. Bank draft, certified cheque, or wire transfer are standard. If you are wiring, confirm the account details with your lawyer by phone using a number you already have, not one from an email. Real estate wire fraud is real, and closing day is exactly when it happens.
Frequently asked questions
When will I get my statement of adjustments?
Typically a few days before possession. Ask for it in advance of your signing appointment rather than at it. A statement handed to you across the signing table leaves no time to question a number.
Why is the final number different from what my realtor estimated?
Estimates are made before the tax certificate, the lender’s final advance, and the condominium estoppel are in hand. The property tax adjustment in particular can move by more than a thousand dollars depending on the possession date.
Who prepares the statement of adjustments?
Both lawyers prepare one and they reconcile before closing so that the figures agree. You receive yours from your own lawyer.
Talk to Lev
Call (403) 466-6580 or email Lev@integrity-legal.ca to book a consultation. We close real estate transactions across Alberta – including Calgary and surrounding areas, with 1-2 week turnarounds when timelines are tight.
Lev Kramar is the principal lawyer at Integrity Legal Solutions in Calgary. He focuses on residential and commercial real estate, with a particular interest in leasehold and new-build closings, including transactions at Taza Park on Tsuut’ina Nation land. Integrity Legal Solutions serves clients across Alberta, with a reputation for fast funds movement and direct, plain-language communication.
Phone: (403) 466-6580 · Email: Lev@integrity-legal.ca · 1550 5 St SW #300, Calgary, AB T2R 1K3
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