Beware “Subject to Adjustments”
The term “subject to adjustments” in an Agreement of Purchase and Sale is often given little attention by both buyers and sellers. However, if you are depending on the sale price to be accurate to the last penny, it can cause serious difficulty.
The purchase price of a home could end up as much as a couple thousand dollars more if the seller had prepaid their taxes. Similarly, a seller could lose some of the purchase price if their taxes are not up to date. There may be rental contracts that need to be bought out, maintenance fees, or a mortgage loan “interest adjustment”, all of which can cause a shortfall. (This last adjustment often happens when the closing date is not at the end of the month.)
Ask your agent to help you calculate these adjustments to avoid any nasty surprises!
Want to know more about adjustments? Please ask me, I'll be happy to help.
peter@peterbottcher.ca — Office: 905-793-9233 — Cell: 416-629-8548
Home to Home Realty Inc., Brokerage — 23 Epsom Downs Drive, Brampton, ON L6T 1Y7
Ph: 905-793-9233 — Fax: 905-799-6164
Not intended to solicit those already under contract with a brokerage
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