BC Realtor Guide to Statement of Adjustments (2026): What Buyers and Sellers Get
The Statement of Adjustments is the final financial accounting of every BC real estate transaction. It tells the buyer exactly how much to bring to closing and tells the seller exactly what they will receive. Most clients see it for the first time two days before completion — and they have questions. This guide gives you the knowledge to explain every line.
What Is a Statement of Adjustments?
A Statement of Adjustments (SOA) is a financial document prepared by the conveyancing lawyers or notaries at closing. It reconciles the purchase price against all credits, deposits, prorations, and holdbacks to arrive at the net amount owing or receivable.
Every residential transaction in BC has two statements:
Buyer's Statement of Adjustments
Shows the total amount the buyer must have ready for closing. Prepared by the buyer's lawyer or notary. Starting point is the purchase price, then credits (deposits paid, any seller credits) and debits (outstanding property taxes owed by buyer's period, strata fees for buyer's period) are applied to produce the net amount due from the buyer.
Seller's Statement of Adjustments
Shows the net proceeds the seller will receive. Prepared by the seller's lawyer or notary. Starting point is the purchase price, then debits (commissions, legal fees, mortgage discharge, outstanding taxes owed by the seller's period) and credits are applied to produce the net payout.
The Adjustment Date
The adjustment date is when financial responsibility shifts from seller to buyer. It is typically the same as the completion date — the day title transfers — though the contract can specify a different date. Property taxes, strata fees, utilities, and rent are all prorated as of the adjustment date. Items in the seller's period: seller pays. Items in the buyer's period: buyer pays, usually via a credit to the seller on the SOA.
The Standard Line Items: What Appears on Every BC SOA
1. Purchase Price
The agreed purchase price from the Contract of Purchase and Sale. This is the starting point for both the buyer's and seller's statements. Any agreed price amendments (from renegotiation after inspection findings, for example) should be documented in a signed addendum before the SOA is prepared.
2. Deposit Credit (Buyer's Statement)
The deposit paid by the buyer is credited against the purchase price on the buyer's statement. If the buyer paid $25,000 in deposits, they owe $25,000 less at closing. Multiple deposits (initial deposit + completion deposit) are each listed separately.
Less: initial deposit (paid 2026-03-01): ($25,000)
Less: additional deposit (paid 2026-03-10): ($25,000)
Subtotal before adjustments: $1,150,000
3. Property Tax Adjustment
BC property taxes run January 1 to December 31 and are billed annually (typically payable by early July). The adjustment depends on whether the seller has already paid the annual tax bill:
Scenario A: Seller has paid annual taxes
The buyer must reimburse the seller for the portion of the year after the adjustment date. This appears as a credit to the seller (or debit on the buyer's statement).
Completion: September 1 → 122 days remaining in year
Buyer pays: 122 × $20 = $2,440 credit to seller
Scenario B: Seller has NOT paid annual taxes
The seller must pay for their portion (January 1 to adjustment date). This appears as a debit on the seller's statement, often paid from net proceeds. The buyer assumes responsibility for the rest of the year.
Completion: September 1 → 243 days seller's period
Seller pays: 243 × $20 = $4,860 debit to seller
Note: The Home Owner Grant (a BC-specific tax reduction for principal residences) belongs to whoever is the registered owner on July 2 of the tax year. If the seller was the owner on July 2, they claim the grant — not the buyer, even if the buyer occupies the home for most of the year.
4. Strata Fee Adjustment (Strata Properties)
Strata fees are paid monthly, typically in advance. If the seller has paid the month's strata fees and the completion date falls mid-month, the buyer reimburses the seller for the portion of the month after the adjustment date.
Completion: September 15 → 16 days remaining in month
Daily rate: $450 ÷ 30 days = $15/day
Buyer reimburses seller: 16 × $15 = $240 credit to seller
5. Prepaid Rent (Tenanted Properties)
If the property is tenanted and the seller has collected rent for a period extending past the adjustment date, the buyer receives a credit for the overpayment. The buyer will be the landlord from the adjustment date and is entitled to the rent for that portion.
Completion: September 10 → 21 days remaining in month
Daily rent: $2,800 ÷ 30 = $93.33/day
Credit to buyer: 21 × $93.33 = $1,960 (buyer collects rent from Sep 10)
6. Security Deposit Holdback (Tenanted Properties)
Under the BC Residential Tenancy Act, a security deposit collected from a tenant must be transferred to the new owner at closing — it does not belong to the seller. The deposit (typically one month's rent or half a month's rent) appears as a credit to the buyer and debit to the seller on their respective statements. The buyer becomes responsible for returning or applying the deposit when the tenancy eventually ends.
7. GST (New Construction and GST-Applicable Properties)
GST at 5% applies to new construction and properties used commercially. For new homes, the GST is typically included in the purchase price and built into the SOA. If a GST rebate applies (for new homes under certain thresholds), it may appear as a credit on the buyer's statement or may be assigned to the builder directly.
Important
GST does not apply to the resale of used residential homes. It only applies to new construction, substantially renovated homes, and some converted properties. Confirm with the seller's lawyer if there is any uncertainty.
8. Non-Resident Withholding (Section 116)
If the seller is a non-resident of Canada for income tax purposes, the buyer's lawyer must withhold 25% of the gross purchase price (or 50% in some cases) and remit it to the CRA unless a clearance certificate is obtained before closing. This withholding appears as a debit on the buyer's SOA and reduces what is remitted to the seller. Failure to withhold makes the buyer personally liable to the CRA — a risk that buyers and their lawyers must take seriously.
9. Legal Fees and Disbursements (Seller's Statement)
The seller's lawyer or notary deducts their fees and disbursements from the net proceeds. These include the professional fee, title search, mortgage discharge registration, couriers, and other out-of-pocket costs. Seller legal fees in BC typically range from $800 to $1,800 for a straightforward residential transaction.
10. Commission (Seller's Statement)
Real estate commissions are paid from the seller's proceeds at closing. They appear on the seller's SOA as a debit. The listing brokerage collects the full commission and remits the cooperating brokerage's portion. GST applies to commissions — so a $30,000 commission has $1,500 in GST, for a total commission debit of $31,500 on the seller's statement.
Commission (tiered, approx.): $28,500
GST on commission: $1,425
Total commission debit: ($29,925)
11. Mortgage Discharge (Seller's Statement)
Any outstanding mortgage balance on the property must be discharged at completion. The payoff amount (including any prepayment penalty) is deducted from the seller's net proceeds. The seller's lawyer obtains a mortgage payout statement from the lender and includes this amount on the SOA. Any break penalties are the seller's responsibility and should be anticipated well before closing.
12. Strata Building Insurance Holdback (Some Strata Sales)
Some strata corporations require a contribution toward building insurance at purchase (particularly in buildings that have had recent special levies or where the insurance deductible is very high). This may appear as a debit on the buyer's SOA if the strata corporation collects it at completion. Confirm with the seller whether any such fees are outstanding.
Worked Example: Full Buyer's SOA
Here is a realistic example of a buyer's Statement of Adjustments for a $975,000 Metro Vancouver condo purchase completing September 15, 2026. The unit is tenanted at $2,200/month. Annual property taxes are $4,380 (seller already paid). Monthly strata fees are $380.
BUYER'S STATEMENT OF ADJUSTMENTS
Completion: September 15, 2026 | Adjustment Date: September 15, 2026
| Item | Debit (Buyer Pays) | Credit (Buyer Gets) |
|---|---|---|
| Purchase price | $975,000.00 | — |
| Deposit paid (2026-08-01) | — | $25,000.00 |
| Property tax adjustment (seller paid; buyer reimburses Sep 15–Dec 31 = 108 days × $12/day) | $1,296.00 | — |
| Strata fee adjustment (seller paid September; buyer reimburses Sep 15–30 = 16 days × $12.67/day) | $202.67 | — |
| Prepaid rent credit (seller collected Sep rent; buyer receives Sep 15–30 = 16 days × $73.33/day) | — | $1,173.33 |
| Security deposit transfer (tenant paid $1,100 to seller; transfers to buyer) | — | $1,100.00 |
| NET DUE FROM BUYER AT COMPLETION | $950,225.34 | — |
The buyer needs to wire $950,225.34 to their lawyer in trust before the completion date. This figure does not include PTT ($18,000 on a $975K purchase), legal fees (~$1,500–$2,000), or any insurance costs — those are paid separately.
Worked Example: Full Seller's SOA
Using the same transaction: $975,000 sale price, September 15 completion. The seller's commission is 3.22% on the first $100K plus 1.15% on the balance (a common REBGV structure), plus GST. Outstanding mortgage balance: $620,000. Seller's legal fees: $1,250.
SELLER'S STATEMENT OF ADJUSTMENTS
Completion: September 15, 2026 | Adjustment Date: September 15, 2026
| Item | Debit (Seller Pays) | Credit (Seller Gets) |
|---|---|---|
| Purchase price | — | $975,000.00 |
| Deposit held in trust (released to seller) | — | $25,000.00 |
| Property tax adjustment (reimbursed by buyer) | — | $1,296.00 |
| Strata fee adjustment (reimbursed by buyer) | — | $202.67 |
| Prepaid rent credit (transferred to buyer) | $1,173.33 | — |
| Security deposit transferred to buyer | $1,100.00 | — |
| Commission (3.22% on $100K + 1.15% on $875K = $13,282.50): $13,282.50 + $1,562.50 = $14,845.00 + GST $742.25 | $15,587.25 | — |
| Mortgage payout (balance $620,000 + $800 discharge fee) | $620,800.00 | — |
| Seller legal fees + disbursements | $1,250.00 | — |
| NET PROCEEDS TO SELLER | — | $361,588.09 |
The seller walks away with approximately $361,588. This figure surprises some sellers who only calculated (sale price − mortgage balance) = $355,000 and did not account for commissions or closing costs. Setting accurate expectations early — ideally at the listing presentation — prevents unhappy surprises on completion day.
Common Client Questions About the SOA
Q: Why is my closing amount different from what we calculated?
A: The final SOA includes property tax and strata fee prorations that are calculated to the day of closing. These depend on the exact completion date and the actual tax and strata fee amounts — which can differ from estimates. The lawyer also adds their disbursements, which vary. Small differences of $100–$500 from estimates are common and normal.
Q: Why do I have to pay property taxes when the seller just paid them?
A: Because the seller paid for the full year and you're taking over ownership partway through. The adjustment reimburses the seller for the portion of the year you'll be the owner. You're not paying taxes twice — you're paying your fair share.
Q: When do I need to have the money ready?
A: Your lawyer needs to receive the funds in trust before the completion date — typically one to two business days before. Funds are transferred by bank wire. Do not leave this to the last minute: wire transfer delays have caused transactions to collapse because the money did not arrive on time.
Q: What if the numbers on my SOA don't match what I expected?
A: Contact your lawyer immediately. SOAs occasionally contain errors, particularly in the proration calculations. Your realtor can help you understand the components — but only your lawyer can adjust the final figures.
Q: Will I see the seller's SOA?
A: No. Each party's SOA is prepared by their own lawyer and is confidential. You will only see your own. However, the buyer's and seller's credits and debits should mirror each other — a credit to one party is a debit to the other.
Advisory Scripts
Setting seller expectations at listing appointment
"I want to walk you through what you'll actually receive at completion so there are no surprises. At the current market value, if we sell at $975,000, your net proceeds after the commission, your remaining mortgage, and legal fees will be approximately $360,000–$365,000. The exact figure depends on your mortgage payoff amount and the day we close — your lawyer will send you the final Statement of Adjustments a couple of days before completion. I want you to know that number now rather than be surprised later."
Explaining the property tax adjustment to a buyer
"On your Statement of Adjustments you'll see a property tax credit to the seller. Here's why: the seller already paid this year's tax bill in full, and since you're taking over on September 15, you owe them for the rest of the year — about 108 days' worth. At your property's tax rate of about $12 a day, that works out to roughly $1,300. It's not an extra tax — it's just reimbursing the seller for what they prepaid on your behalf."
Explaining the timing for funds transfer
"Your lawyer will need the funds by [date] — that's two business days before our completion. The amount will be on your Statement of Adjustments, which you'll receive from your lawyer within the next few days. I'd recommend confirming the wire transfer details directly with your lawyer, not through email — wire fraud is a real risk in real estate, and you want to call to verify the bank account details before you send anything."
Seller asking why commission is on the statement
"Yes, the commission comes off your proceeds at closing — that's standard in BC. The listing brokerage collects it from the funds your lawyer receives from the buyer's lawyer, then remits the buyer's agent's portion to their brokerage. You won't see separate invoices or need to write a cheque — it all flows through the trust account. The commission total includes GST, which is why the number is slightly higher than the commission percentage applied to the sale price."
Frequently Asked Questions
What is a Statement of Adjustments in BC real estate?
A Statement of Adjustments is a document prepared by the buyer's and seller's lawyers or notaries that calculates the exact amount the buyer must pay and the seller will receive at completion. It accounts for the purchase price, deposits paid, property tax prorations, strata fee prorations, prepaid items, and any other credits or debits. Every residential transaction in BC has a Statement of Adjustments.
Who prepares the Statement of Adjustments in BC?
The buyer's lawyer or notary prepares the buyer's Statement of Adjustments. The seller's lawyer or notary prepares the seller's Statement. Both are prepared close to the completion date once all figures are confirmed. The two statements should mirror each other — credits to one party appear as debits to the other.
How are property taxes adjusted on BC closing?
BC property taxes run January 1 to December 31. If the seller has paid annual taxes, the buyer reimburses the seller for the portion of the year after the adjustment date (usually the completion date). If taxes are unpaid at closing, the seller pays the amount owing for the period up to the adjustment date, and the buyer assumes taxes from then on. The proration is calculated on a per-day basis using the annual tax bill.
What is the adjustment date in BC real estate?
The adjustment date is the date on which financial responsibilities shift from seller to buyer — typically the completion date (the day legal title transfers) or the possession date. The Contract of Purchase and Sale specifies the adjustment date. Items like property taxes, strata fees, and rent are prorated as of this date.
What happens to the deposit on the Statement of Adjustments?
The deposit paid by the buyer appears as a credit on the buyer's Statement of Adjustments, reducing the amount they need to bring to closing. It appears as a debit on the seller's Statement, reducing the net proceeds. The deposit is typically held in the listing brokerage's trust account and released to the seller's lawyer at completion.
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