By Gaurang Shah
This article is for general educational purposes and does not constitute legal advice. Court decisions and contract language vary by case. Consult a real estate lawyer about your specific Agreement of Purchase and Sale.
Who this is for: Pre-construction and new-build buyers in Brampton, Mississauga, and the GTA who are approaching closing on a townhouse, condo, or new home and want to understand what closing adjustments are allowed under their Agreement of Purchase and Sale, especially if a charge on the Statement of Adjustments looks unclear or unexpectedly high.
I have seen it happen more than once. Buyers are days away from closing on a new build they have been waiting years for. Then the Statement of Adjustments arrives, and there is a charge on it they have never seen before.
Sometimes it is a few thousand dollars. Sometimes it is much more. The immediate question is usually the same: “Can the builder actually charge this?”
In most cases, buyers feel stuck. They have movers booked, financing arranged, and a closing date coming fast. They may assume anything on the adjustment sheet must be legitimate because the developer put it there.
A group of buyers in Mississauga challenged that assumption in Bellisario et al. v. 2200 Bromsgrove Development Inc., 2025 ONSC 2546. The decision matters for Ontario new-build buyers because it reinforces a simple point: closing adjustments must come from the contract. They are not a blank cheque.
Quick Answer
New-build closing adjustments in Ontario can be normal, but they must be authorized by the Agreement of Purchase and Sale. If a charge appears days before closing and does not clearly match the APS, buyers should ask their real estate lawyer to review it before assuming it must be paid. This article is educational only and is not legal advice.
Last reviewed: August 2026. Court decisions, TARION rules, builder forms, and contract language can change. Review your own APS with a real estate lawyer before relying on any adjustment estimate.
What Happened in the Bellisario Case
The buyers purchased units in a Mississauga townhouse development known as Clarkson Urban Towns. The agreements were signed before construction was complete, which is common in pre-construction purchases.
Shortly before closing, the developer delivered final Statements of Adjustment. Those statements included charges labelled as utility meter installation charges. The issue was that the charges went beyond simple meter installation. They included amounts connected to contractors, trades, construction management, and landscaping.
Some buyers saw very large additional amounts added at closing. The buyers closed as required, then challenged the charges in court.
The Ontario Superior Court reviewed the wording of the Agreements of Purchase and Sale and found that the developer was only permitted to recover charges that were specifically authorized by the contract. The court did not accept the idea that broad or vague adjustment language allowed the developer to pass along internal construction costs that were not clearly listed in the APS.
Why This Matters to Ontario New-Build Buyers
Closing adjustments are common in new-build purchases. They can include items such as taxes, utility connection costs, municipal charges, TARION enrolment, condo fees, or other items addressed in the agreement.
The problem is not that adjustments exist. The problem is when a buyer receives a charge that is unclear, unexpectedly large, or not obviously connected to the contract language.
| Normal Question | Why It Matters |
|---|---|
| Is this adjustment named in the APS? | The contract should clearly authorize the type of charge being added. |
| Who was the money paid to? | There is a difference between charges paid to a municipality or utility provider and internal builder costs. |
| Is there a cap or estimate? | Open-ended clauses can create closing-day surprises if the buyer did not understand the range. |
| Can the builder provide proof? | A buyer’s lawyer may need supporting documents before advising whether the amount is proper. |
| What happens if you dispute it? | Refusing to close can create risk, so the strategy must come from a lawyer who has reviewed the APS. |
The Statement of Adjustments Is Not the Whole Story
A Statement of Adjustments is not automatically proof that every amount is valid. It is the seller or builder’s calculation of what they say is owed on closing. Whether the buyer actually owes it depends on the Agreement of Purchase and Sale and the supporting documentation.
This distinction matters because the adjustment sheet usually arrives late, when buyers are under pressure. By that point, the buyer may have already arranged financing, packed their home, scheduled movers, and made plans around the closing date.
That pressure can make people pay first and ask questions never. A better approach is to involve your lawyer early and understand the adjustment clauses before the final week.
What Buyers Should Ask Before Signing a New-Build APS
The best time to understand closing adjustments is before you sign. Once the agreement is firm, your leverage may be very different.
Ask your real estate lawyer questions like these:
- Which closing adjustments does this APS specifically permit?
- Are any adjustment clauses open-ended?
- Are there caps on development charges, utility costs, levies, or administrative fees?
- What range of closing adjustments would be realistic for this type of purchase?
- Does the TARION Addendum override or clarify any part of the agreement?
- If an unexpected charge appears before closing, what options would I have?
If you are still comparing new-build numbers against resale homes, remember to include total closing cash in the comparison. See our Ontario closing costs guide for how resale closing costs typically break down, since new-build closing cash requirements are calculated differently.
Common New-Build Closing Adjustments to Review
Every agreement is different, but buyers should slow down around any charge that is large, vaguely worded, or not capped.
| Adjustment Type | What to Review |
|---|---|
| Utility connections or meters | Ask whether the agreement allows the charge and whether the amount is supported by actual invoices. |
| Development charges or levies | Check whether the APS sets a cap, estimate, or method for calculating the amount. |
| Legal or administrative fees | Confirm when those fees apply and whether they are tied to specific buyer actions. |
| TARION enrolment | Confirm how the enrolment fee is handled and whether it matches the applicable new-home warranty process. |
| Taxes and occupancy adjustments | Review timing, interim occupancy, property tax proration, and condo-related charges if applicable. |
Not Sure If Your Closing Adjustment Is Valid?
If a charge on your Statement of Adjustments looks unclear or larger than expected, it is worth a quick conversation before you assume it has to be paid.
Call or text Gaurang at 647-892-2411.
What This Means for GTA Buyers
The Bellisario dispute came from a Mississauga project, which makes it very relevant for buyers in the west GTA. This is not a distant issue. Pre-construction buyers in Brampton, Mississauga, Milton, Oakville, Vaughan, Toronto, and surrounding markets sign agreements with detailed adjustment clauses every day.
New-build pricing can look attractive at the signing stage, especially when the deposit structure feels manageable. But the final cost is not only the advertised purchase price. Buyers also need to understand HST treatment, assignment rules, development charges, occupancy fees, closing adjustments, and the cash required on final closing.
If you are still deciding between resale and pre-construction, start with the GTA home buying guide. If you are a first-time buyer trying to understand down payment and closing cash together, the Ontario down payment sources guide is also worth reading.
Frequently Asked Questions
What is a closing adjustment in a new build?
A closing adjustment is an amount added to or subtracted from the balance due at closing to account for prepaid costs or amounts calculated as of the closing date. In new builds, common examples can include property tax adjustments, utility connections, TARION enrolment, and other charges described in the APS.
Can I refuse to close if I disagree with an adjustment?
That is a legal question and depends on the APS, the charge, the evidence, and the risk of default. Refusing to close can have serious consequences, including deposit risk. Speak with your real estate lawyer before taking any position on closing.
Does the builder have to prove the adjustment?
If a charge is questioned, your lawyer may ask for the contract basis and supporting documents. The key issue is usually whether the APS authorizes the charge and whether the amount can be properly supported.
What is the TARION Addendum?
The TARION Addendum is part of Ontario new-home purchase paperwork and sets out mandatory information and protections for new-home buyers. Your lawyer should review how it interacts with the rest of the APS.
Bottom Line
A developer cannot treat closing adjustments as a catch-all for costs that are not clearly authorized by the Agreement of Purchase and Sale. The Bellisario case reinforces that buyers should not assume every late-stage adjustment is untouchable.
Before signing a pre-construction agreement, review the adjustment clauses with a real estate lawyer. Before closing, compare the Statement of Adjustments against the contract. If a number looks wrong, ask questions quickly and get proper advice.
Navigating a Pre-Construction Closing?
This article is a real estate education summary, not legal advice. If you are navigating a pre-construction purchase in Brampton, Mississauga, or the GTA and want help understanding the practical buying side of the process, I’m available to talk it through.
Call or text: 647-892-2411
Email: mail@myshahteam.com
Gaurang Shah | Shah Team | Royal LePage Flower City Realty
Consultations are available in English, Hindi, Gujarati, Marathi, and Punjabi.
Reference: Bellisario et al. v. 2200 Bromsgrove Development Inc., 2025 ONSC 2546
