# What is a Statement of Adjustments and what does it show?

> The Statement of Adjustments is the financial reconciliation document prepared by your real estate lawyer showing every dollar exchanged at closing — purchase price, deposit credit, prorated taxes, condo fees, and the final amount you owe.

Category: Closing
Last verified: 2026-04-19
Source: https://ratellow.com/faqs/closing/what-is-a-statement-of-adjustments-at-mortgage-closing

## Answer
**The Statement of Adjustments (SOA) is the definitive financial document for your closing day — it shows exactly how every dollar flows between buyer and seller.**

## What the SOA Includes

**Credits to the Buyer (money owed to you):**
- Your deposit already paid
- Any seller repairs agreed in the offer
- Tenants' prepaid rent or damage deposits (assignment deals)

**Debits to the Buyer (money you owe):**
- Purchase price
- Prorated property taxes (if seller has prepaid beyond possession date)
- Prorated condo maintenance fees
- Any extras agreed in the deal (appliances, chattels, etc.)

## The "Balance Due on Closing" Line

The SOA produces a single **balance due on closing** figure — this is what your lawyer needs from you by possession day, on top of what your mortgage lender sends directly to the lawyer in trust. Typically:

- Mortgage lender sends: mortgage proceeds to lawyer in trust
- You send: closing costs + down payment balance to lawyer in trust
- Lawyer sends: full purchase price to seller's lawyer

## Key Timing

You should receive a draft SOA from your lawyer **2–5 business days before closing**. Review it carefully — errors in tax prorations or deposit credits are common and must be corrected before possession day.

### Your Next Steps
1. **Ask your lawyer** for the draft SOA at least 3 days before closing
2. **Confirm the wire transfer amount** your bank needs to send to the lawyer in trust
3. **Read the Closing Costs guide** → [Closing Costs Canada](/guides/closing-costs-canada)

## Related guide
- https://ratellow.com/guides/closing-costs-canada

## Sources
- Closing Costs — FCAC — https://www.canada.ca/en/financial-consumer-agency/services/mortgages/closing-costs.html
- Home Buying Guide — CMHC — https://www.cmhc-schl.gc.ca/consumers/home-buying/buying-guides