Let us admit that a significant amount of paperwork is involved in purchasing or selling a property. The Statement of Adjustments is one document that might sometimes cause misunderstandings. But it doesn’t have to be as difficult as it seems.
What is it, then?
The Statement of Adjustments is a financial breakdown that helps figure out exactly how much money changes hands on settlement day. It makes sure the buyer and the seller are each paying their fair share of property-related costs, no more, no less.
Key Points to Understand the Statement of Adjustments:
It’s a Financial Balancing Tool
The Statement of Adjustments is used to fairly divide costs between the buyer and the seller at settlement. It ensures everyone pays for their share of property-related expenses.
It Accounts for Prepaid or Owing Expenses
The buyer reimburses the seller for any unused funds if they have previously paid strata fees, water bills, or council rates for a period that extends beyond the settlement date.
However, the seller pays for any bills that are not paid.
It’s Finalised Before Settlement
Before settlement day, your conveyancer or solicitor prepares and finalises the settlement statement. In order for both parties to understand exactly what is due, it outlines all financial adjustments.
It includes strata fees, water expenses, and council rates. This guarantees that the buyer pays the right amount in the end. And that the seller is paid what they are due after all deductions.
You Don’t Have to Do It Alone
Your conveyancer or solicitor will explain it to you, but it’s helpful to understand the basics so you know where your money is going.
Sapphire Real Estate Agents Are Here to Assist
Our team of professionals are happy to assist you with every step of the process. This includes the Statement of Adjustments, whether you are buying or selling.
