A statement of adjustments is a document prepared by the purchaser’s conveyancer/ lawyer that sets out how various rates will be apportioned by the vendor and purchaser based on the amount of days each party is occupying the property in a rate period.
Standard rates that are adjusted at settlement can include:
- Water and sewerage rates including daily usage
- Land tax
- Council rates
- Owner corporation fees
- Rental payments
The adjustments are then added to the purchase price so the amount payable to the vendor may be slightly higher (or sometimes lower) than the purchase price due to the vendor written in the contract.
It is assumed that the vendor has paid in advance for the period. Any rates that have not actually been paid are paid from the funds due to the vendor at settlement to the relevant authorities.
If there are any charges that are incurred by the vendor in order to provide good title at settlement such as for a discharge of mortgage or withdrawal of caveat these are adjusted for as being the responsibility of the vendor. Further the PEXA electronic settlement fee is deducted from the amount due to the vendor at settlement.
It is important to note that these amount are obtained from certificates obtained from the relevant authorities. As a vendor, if you pay any amounts close to settlement then please let your lawyer know as this may effect the amounts to be deducted from you at settlement.
Our experienced lawyers are Carew Counsel Solicitors have prepared and reviewed many statements of adjustments and are well versed in conveyancing transactions representing both the vendor and purchaser. Please contact us to speak to one of our lawyers in relation to your conveyancing needs.