In most Agreement of Purchase and Sale you will note that the purchase price will be paid by cash or certified cheque, "subject to the usual adjustments".

Usual adjustments are items that have been prepaid or unpaid that benefit one party or the other after closing. On a re-sale home, adjustments on closing may consist the following items:

Realty taxes
Condominium expenses
Fuel oil
Water
Land lease payments
Mortgage assumed

These items are prorated and a credit is given to the vendor as an adjustment on closing.

When purchasing a new home from a Builder, you should be aware that there will be extra costs involved. These costs may not be clearly set out at the time of entering into the contract. We recommend that you clarify these charges when negotiating your contract, if they have not already been predetermined. The following are some of the typical adjustments you will find in a builders Agreement of Purchase and Sale:
Ontario New Home Warranty Program enrolment fee
Educational lot levy
Driveway paving Hydro and Water Meter installations
Tree planting
Subdivision damage deposit
Subdivision grading deposit
Legal fees relating to any mortgages arranged through builder
Vendor's lawyer insurance levy surcharge
GST & PST on extras and appliances
Realty tax deposit

These adjustments can add several thousands of dollars to your closing costs.