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ADJUSTMENTS DURING A NOTARIZED TRANSACTIONSaint-Sauveur, October, 2005 Dear readers, To follow-up on the last publication of my legal column in this magazine, I thought of offering you specifics on: ADJUSTMENTS DURING A NOTARIZED TRANSACTION Whether buying a new home, a condominium or even a piece of property, all real estate transactions involve monetary adjustments on the part of all parties during the final meeting with the notary. The notary will ask the buyer to bring a certified check or a bank draft for both the cash down and the necessary adjustments to conclude the transaction. The adjustments include, among other things, municipal and school taxes. In effect, the buyer must reimburse the seller for amounts which have already been paid. The costs to fill the oil tank, rent in the case of a rental property, any rent that the seller agrees to pay the buyer should he or she continue to live in the building for a period of time, interest in the case where a mortgage is to be assumed, and special charges (eg. condo fees) will also be included in the adjustments. Whether it is the buyer or the seller who owes a sum to the other party, the amount will be credited to or debited from the net amount of the transaction before calculating the final amount owed by the buyer. The calculation of the adjustments will also take the buyer’s down payment and the amount of the mortgage into account. The notary will determine all amounts owed by the seller such as taxes in arrears, mortgage to be reimbursed, real estate commission, acquittance fees, new land survey certificate, etc. In any case, the notary will provide all parties with a document detailing all distributions, showing an accounting of all amounts to be adjusted between the buyer and the seller, to ensure that all parties have a thorough understanding of the monies to be exchanged. For additional information do not hesitate to communicate with me at (450) 227-7077 or at (514) 745-6673 (NORD) or at (514) 688-3131.
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