The adjustments are accessories to all transactions. They consist in adjusting the fees covering a yearly or monthly period that may have been paid by the vendor or that will be under the responsibility of the purchaser.
Municipal taxes cover a period starting on January 1 st up to December 31.
If you are buying a property on September 1 st., the vendor has paid municipal taxes up to December 31. You will then reimburse your vendor for all municipal taxes covering the period of the year that you will own the property. In this example it would be from September 1 to December 31. Of course if you are buying on February 1 st, the vendor will then owe you taxes from January 1 up to February 1st.
The fiscal year for School taxes is from July 1 st up to June 30 th of each year. They will also be adjusted.
If the property has tenants, the rental will be adjusted on a day to day basis as rents are paid in advance. (If a rental is paid on the 1 st, it covers the period from the 1 st up to the last day of the month.)
Heating oil may be adjusted as well. Normally, the vendor will have the tank filled and a full tank is charged to the buyer.
If you are pursuing the vendor's insurance, they will be adjusted on a day basis.
On the closing date, the notary will prepare the necessary adjustments. Do not hesitate to contact him as he will give you all the required information
|
