ExamPassClosing Adjustments Calculator
On a statement of adjustments, property tax, condominium fees, rent and flat utility charges are shared by the day. As the course teaches, the day of closing belongs to the buyer: the seller pays up to the day before closing, and the buyer from closing day on. If the seller has prepaid past closing, the buyer credits the seller; if the seller has not paid for their own days, the seller credits the buyer. Enter an item below to see the credit and every step.
Enter an item and a closing date to see the credit and every step.
How does the calculator work?
Yearly items (property tax, a flat water charge).
- Daily rate (per diem) = the year's amount ÷ 365, or 366 in a leap year.
- Seller's days = January 1 up to the day before closing. Buyer's days = closing day to December 31.
- Seller's share = the year's amount × seller's days ÷ days in the year.
- Compare what the seller has paid with the seller's share. Paid more: credit to the seller. Paid less: credit to the buyer.
Monthly items (condominium fees, rent). Use the days in the month of closing. If the seller paid the month's condo fee, the buyer credits the seller for the days from closing to month end. If the seller collected the month's rent, the seller credits the buyer for those days, and also hands over the tenant's last month's rent deposit with any interest owing.
Never adjusted. Property insurance (the buyer arranges their own from closing day) and metered utilities (read on the closing date). The reserve fund of a condominium is not adjusted either: it stays with the corporation.
The calculator assumes a calendar tax year. If your agreement gives the closing day to the seller, use the override.
Worked example: a mid-June closing in London
The Tremblays sell their house in London, Ontario, closing Monday, June 15, 2026. The 2026 property tax is $7,300 and they have paid it in full.
| Step | Working | Result |
|---|---|---|
| Daily rate | $7,300 ÷ 365 | $20.00 |
| Seller's days, Jan 1 to Jun 14 | 31 + 28 + 31 + 30 + 31 + 14 | 165 days |
| Buyer's days, Jun 15 to Dec 31 | 365 − 165 | 200 days |
| Credit to the seller | $20.00 × 200 | $4,000.00 |
The buyer pays $4,000 more on closing for tax the sellers prepaid for the buyer's days. June 15 is the buyer's day.
Now a condo: a Kitchener unit closes Tuesday, July 21, 2026, and the seller has paid July's $585 common expense fee. July has 31 days and the buyer owns 11 of them (July 21 to 31), so the buyer credits the seller $585 × 11 ÷ 31 = $207.58.
Frequently asked questions
Who pays property tax on the day of closing in Ontario?
As the course teaches, the buyer. The standard agreement's adjustment clause gives the closing day to the buyer, so the seller's share runs to the day before. Counting the closing day as the seller's puts every proration off by one day, which is exactly what exam distractors test.
Who prepares the statement of adjustments?
The seller's lawyer prepares it, and the buyer's lawyer reviews it. A salesperson can estimate the adjustments to help a client budget, but does not prepare the statement.
Are condominium fees adjusted on closing?
Yes, by the day, like property tax, when closing is not on the first of the month or the seller is behind on fees. See the condo status certificate guide for what else a condo buyer checks before closing.