Humber/Ontario Real Estate Course 3 Exam Practice

Who usually prepares the statement of adjustments in a property sale?

1. Seller’s lawyer

2. Buyer’s lawyer

3. Real estate agent

4. Financial advisor

5. Bank manager

6. Property inspector

The correct answer is: Seller’s lawyer

In a property sale, the statement of adjustments is typically prepared by the seller’s lawyer. This document plays a crucial role in the closing process, as it outlines any adjustments that need to be made between the buyer and seller regarding expenses such as property taxes, utilities, and any other costs that need to be allocated due to the timing of the sale. The seller’s lawyer usually has the responsibility to ensure that all relevant financial details are accurately compiled and presented, considering the financial interests of the seller throughout the transaction. The adjustments include items that may have been prepaid by the seller or expenses incurred up to the closing date, ensuring that both parties are fairly compensated based on their occupancy and financial obligations to the property. While the buyer's lawyer might also be involved in reviewing and confirming these calculations, the primary responsibility for preparing the statement lies with the seller's legal representation. Other roles, such as real estate agents, financial advisors, bank managers, and property inspectors, do not typically engage directly in this legal documentation process, as their functions focus on different aspects of real estate transactions.