In BC's standard Contract of Purchase and Sale, what is the purpose of the 'adjustment date'?
Correct Answer
A) The date from which property taxes, utilities, and other expenses are apportioned between buyer and seller
The adjustment date in BC's Contract of Purchase and Sale is the date used to apportion property taxes, strata fees, utilities, rent, and other ongoing costs between buyer and seller. It is typically the same as the completion date but can differ.
Why This Is the Correct Answer
Option A is correct because the adjustment date is the date from which property taxes, strata fees, utilities, rent, and other ongoing expenses are apportioned between the buyer and seller. The seller is responsible for costs up to the adjustment date, and the buyer assumes responsibility from that date forward. In BC practice, the adjustment date is typically the same as the completion date but can be negotiated to be different.
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