On the Settlement Date, adjustments are made to the Purchase Price in favour of either the Buyer or the Seller, depending on the situation at the time.
The more common adjustments include:
- Local Council rates. Adjustments are made for the Council rates that have been, or are to be, paid on the property for that period. The amount adjusted will vary depending on the local council involved, the amount of the rates, when settlement occurs, etc.
- Water usage. This will depend on whether the property is connected to a town water supply or whether there is a Water Allocation involved or the water is supplied by a separate supplier.
- Rent. If the property is tenanted, there will need to be an adjustment for the rent paid. This will usually be done by our firm or the managing agent.