What are “closing adjustments”?

Updated March 13, 2023.

“Closing adjustments” are credits or debits to either party to allocate responsibility for expenses already paid or to be paid. Property taxes are an expense that typically needs to be “adjusted” at closing. For example, if the seller has paid a full year of property taxes but sells the house to the buyer only five months after the taxes were paid, the seller received only five months of benefit from the payment of these taxes and the buyer will be getting the remaining seven months of benefit. Therefore, this payment is “adjusted” at closing by the buyer reimbursing the seller for 7/12ths of the yearly payment, which represents the seven months of taxes that were paid by the seller for the buyer’s benefit.


Read our latest news and blogs that discuss important legal issues.

distracted driving
How Dangerous is Distracted Driving?
Read More
What is Mesothelioma?
Read More
person driving car
How Can Witness Statements Strengthen a Car Accident Case?
Read More

Get in touch

Please do not provide any sensitive information (i.e. bank account information or social security number).

"*" indicates required fields

Why Choose Lacy Katzen

Our mission is to ethically serve our clients with excellence and teamwork each day.

Over 73 Years of Experience
Nine Attorneys Listed in Best Lawyers in America®
Ranked by Best Lawyers as a Best Law Firm®
Six Attorneys Named as Super Lawyers
One Attorney is a Fellow at the American College of Trial Lawyers

Accessibility Toolbar