What are the usual adjustments?
The purchase price is often stated to be “subject to the usual adjustments”. Usual adjustments include adjustments for the initial deposit, a pro-rata share of property taxes (School Board and Local Road Boards); mortgage principal if a mortgage is to be assumed; rents, prepaid rents and interest on prepaid rents, if applicable, GST (if applicable); etc. With respect to new construction, the Agreement of Purchase and Sale may provide for upgrades, the cost of which will be adjusted prior to closing.
