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What is a Rates Adjustment?

This is where the solicitors for the seller and buyer work out what proportion of the rates each of the parties pay. The normal procedure is that if a rates notice has been issued then the rates will be paid using the purchase monies with the purchase price increasing by the buyer's share of the rates. If the rates have already been paid then you will simply increase the purchase price by the buyer's share of the rates. If a rates notice has not been issued then the purchase price will decrease by the amount of the seller's share of the rates. For example, if the rates were $600.00 and settlement occurred on 30 September, then the purchase price would increase by $300.00. This is assuming that the rates are paid half yearly.

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