In a sale and purchase agreement, there is a clause stating that the purchase price outstanding on the closing date will be paid by certified cheque subject to the usual adjustments.
At the time of closing, the certified cheque required from the purchaser includes all the adjustments which become payable:
All Adjustments between resale vendor and purchaser:
Adjustments on a resale home include prepaid items by the seller beyond the date of closing, which ends up benefitting the purchaser. These prepaid items are pro-rated, and all adjustments arising from this situation are payable to the seller on the closing date. Few examples are:
- Prepaid fees of condominium (for condominium purchases)
- Fuel oil (if the oil furnace is part of the property)
- Property taxes prepaid
- Any prepaid rent and rent for current month, where tenancies are assumed