A Statement of Adjustments is prepared by the Purchaser’s representative to calculate the monies that are owed upon the property. Adjustable items include the council rates, water rates, body corporate fees (if applicable) and the like. Adjustments are calculated so that the Vendor pays for everything due up to the date of settlement and the Purchaser for everything due from the settlement date until the end of the next rating period. In accordance with the Local Government Act adjustments are calculated on a paid basis. Cheques to cover payment of any outstanding rates are deducted from the monies due to the Vendor at settlement. These cheques are retained by the Purchaser’s legal representative and forwarded to the relevant authorities following settlement