What is a Statement of Adjustment?

WOWA Trusted and Transparent

What You Should Know

  • A statement of adjustments shows how much is to be paid to the seller on closing, along with a breakdown of all costs. It’s used to keep track of transactions and amounts.
  • The statement of adjustments will include costs that the seller has prepaid and that the buyer will reimburse, such as prepaid utilities or property tax for the year.
  • The buyer's trust ledger will show how much they have paid to the seller, along with buyer closing costs, such as land transfer tax, legal fees, and home appraisal fees.
  • A seller's trust ledger shows how much the seller will receive, after subtracting legal fees and real estate commissions.
  • A refinance trust ledger statement is used to show changes to your mortgage amount when you are refinancing your mortgage.

A statement of adjustments is a lot like your own personal bank statement; however, instead of for your monthly purchases, it includes your various debits and credits from a housing transaction. The use of a Statement of Adjustments is to show the final amount the buyer owes to the seller on the closing date. To calculate this, prepaid expenses that the buyer will have to reimburse the seller for such as utilities and property tax are added to the purchase price and subtracted from the deposit. This gives both the buyer and seller the same amount that will be due to the seller when the property closes. When both the buyer’s and seller’s Statement of Adjustments is combined, it creates a final overall picture of what is happening in the transaction.

What is a Trust Ledger Statement?

A Trust Ledger Statement is used to show how money is being distributed when the sale does close. For both buyers and sellers, the amount due to the seller at close is carried over to the Trust Ledger. For buyers, closing costs are added to the amount owed to the seller, to equal the total cost owed at close. For sellers, the amount owed to them by the buyer at close is then subtracted from the closing costs the seller has.

Example of a Statement of Accounts & Trust Ledger Statement

A single family residential property is sold in British Columbia. The sale price is $750,000. The deposit made by the buyer is $30,000. The seller has prepaid the utilities for the full month, however only used it for 18 days before transferring the property to the seller. Along with this, the seller paid the full property tax amount for the year, however only owned the property for 138 days. In order to rectify this, the buyer needs to pay the seller for the utilities for the rest of the month, along with property tax for the rest of the year. Subtracting the deposit already paid by the buyer leaves a new amount of $724,653 owed to the seller at the closing date.

Buyer's Statement of Adjustments

Purchase Price $750,000
Deposit - $30,000
Prepaid Utility Fees
Fees Paid This Month + $246
Seller's Share (18 Days) - $148
Prepaid Property Tax
Taxes Paid to Date + $7,324
Seller's Share (138 Days) - $2,769
Due to Seller on Closing$724,653

The seller's Statement of Adjustments shows the same amount to be paid on the closing date as the buyer has.

Seller's Statement of Adjustments

Purchase Price $750,000
Deposit - $30,000
Prepaid Utility Fees
Fees Paid This Month + $246
Seller's Share (18 Days) - $148
Prepaid Property Tax
Taxes Paid to Date + $7,324
Seller's Share (138 Days) - $2,769
Paid to Seller on Closing$724,653

The buyer’s down payment and mortgage amount to pay both the seller and closing costs are at the top of the Trust Ledger. The amount that is owed to the seller on the closing day from the Buyer's Statement of Adjustments, is carried over to the buyer’s Trust Ledger. Next, the buyer's Trust Ledger adds up closing costs, including land transfer taxes and legal fees to name a few. When combined with the amount paid to the seller on close, it represents the total amount left to be paid by the buyer.

Buyer's Trust Ledger
Down Payment $140,387
Mortgage from Lender + $600,000
Total Funds$740,378
All Costs
Paid to Seller on Closing $724,653
Closing Costs
Land Transfer Tax, BC + $13,000
Lawyer & Legal Fees + $1,400
Home Inspection Fee + $500
Property Appraisal Fee + $350
Property Survey Fee+ $475
Total Closing Costs$15,725
Total Cost$740,378

On the top of the seller's Trust Ledger, it carries over the remaining amount due from the buyer at close from the Statement of Adjustments. In order to find the total amount the seller will get, the seller's closing costs are subtracted, including legal fees and real estate commissions.

Seller's Trust Ledger
Received From Buyer $724,653
Closing Costs
Legal Fees $920
Real Estate Commission $30,000
Total Closing Costs$30,920
Paid to Seller After Close$693,733


For those refinancing their mortgages, you will only get a trust ledger statement. In it will be the changes to your mortgage amount. If you are taking out a larger mortgage, which is common in places such as Ontario where home prices have soared, the new amount is subtracted from your old mortgage balance. The remainder is then subtracted by any bills or debts you wish to pay down. After subtracting the difference and the costs of the bills or debts, the remaining balance will be yours to keep.

The calculators and content on this page are provided for general information purposes only. WOWA does not guarantee the accuracy of information shown and is not responsible for any consequences of the use of the calculator.