CostThe statement of adjustments is your lawyer's final accounting of closing day, reconciling prepaid costs (like property tax the seller already paid for the full year) between buyer and seller, and showing the exact final amount you owe to close.
What it actually is
The statement of adjustments is prepared by your lawyer shortly before closing and lays out the final financial reconciliation between buyer and seller — it's where your purchase price, deposit already paid, and any prepaid costs the seller is owed reimbursement for all come together into one final number: what you actually need to bring to close.
The most common adjustment: property tax
Property tax adjustment example
| Annual property tax | $4,800 |
| Seller already paid the full year | Yes |
| Closing date | September 1 (2/3 of year remaining) |
| Amount you reimburse seller | ~$3,200 |
If the seller already paid the full year's property tax and you're taking ownership partway through the year, you reimburse them for the portion covering your remaining ownership period — you're not getting a free ride on tax they already paid for months you'll actually own the home. This is the single most common adjustment buyers encounter.
How to actually read it
Other adjustments can include prepaid utility accounts tied to the property, condo fees, or (in the reverse direction) any deposit credits already applied. Review the statement with your lawyer before closing day, not for the first time at the signing table — ask about any line item that isn't immediately clear, since these numbers form your actual final closing cash requirement, on top of what you budgeted using the closing cost calculator.