What are adjustments or apportionments, and how do they affect my closing costs?

Adjustments, sometimes called apportionments, are pro-rated cost-sharing calculations made at closing to ensure that both buyer and seller pay only their fair share of ongoing expenses. The most common adjustments involve property taxes and heating fuel. If the seller has prepaid taxes for a period that extends beyond the closing date, the buyer reimburses the seller for that portion. Conversely, if taxes are owed and unpaid, the seller credits the buyer.

In the Western Catskills, the fuel oil adjustment is particularly relevant, as many homes in Delaware, Otsego, Greene, and Ulster counties rely on heating oil or propane rather than natural gas. The oil or propane remaining in the tank at the time of closing is measured and credited to the seller at the current market rate. Given that rural Catskill homes can have large tanks — sometimes 275 to 500 gallons — this adjustment can be meaningful. Buyers should also be aware that school and town tax cycles in these counties may mean adjustments going in either direction depending on the time of year the sale closes.