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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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