{"id":1164,"date":"2026-09-24T20:36:57","date_gmt":"2026-09-24T20:36:57","guid":{"rendered":"https:\/\/www.vsrlawfirm.com\/blog\/?p=1164"},"modified":"2026-09-24T20:42:49","modified_gmt":"2026-09-24T20:42:49","slug":"real-estate-lawyer-mississauga-what-to-know-about-property-tax-adjustments","status":"publish","type":"post","link":"https:\/\/www.vsrlawfirm.com\/blog\/real-estate-lawyer-mississauga-what-to-know-about-property-tax-adjustments\/","title":{"rendered":"Real Estate Lawyer Mississauga: What to Know About Property Tax Adjustments"},"content":{"rendered":"

Buying or selling a home involves more than agreeing on the purchase price. Property taxes also have to be dealt with properly on closing.<\/span><\/p>\n

A <\/span>Real Estate Lawyer Mississauga<\/b><\/a> buyers or sellers work with will normally review the property tax information before closing. The lawyer checks how much tax has been paid, whether any amount is still owing, and whether a <\/span>property tax adjustment on closing<\/b> is required.<\/span><\/p>\n

These adjustments can sometimes look confusing on the Statement of Adjustments. But the basic idea is simple: the seller should normally pay their share of the property taxes for the time they owned the property, and the buyer becomes responsible for their share after closing.<\/span><\/p>\n

Also Read:<\/strong> Avoid Legal Mistakes with a Real Estate Lawyer in Toronto<\/em><\/a><\/p>\n

What Are Property Tax Adjustments?<\/h2>\n

A property tax adjustment is used to divide the year’s property taxes between the buyer and seller.<\/span><\/p>\n

For example, imagine:<\/span><\/p>\n

    \n
  • Annual property taxes are $6,000.<\/span><\/li>\n
  • The seller has already paid the full $6,000.<\/span><\/li>\n
  • The property closes halfway through the year.<\/span><\/li>\n<\/ul>\n

    The seller has paid taxes covering part of the year when the buyer will own the home. In that situation, the buyer may have to credit the seller for the buyer’s portion of the taxes.<\/span><\/p>\n

    The opposite can also happen. If taxes relating to the seller’s period of ownership have not yet been paid, the adjustment may provide a credit to the buyer.<\/span><\/p>\n