A one-time fee charged to condo owners when the reserve fund doesn't have enough money to cover a major repair or unexpected expense. Special assessments can range from a few hundred dollars to tens of thousands per unit, depending on the scope of the work needed. They're typically approved by the condo board and can sometimes be paid in installments.
Why It Matters
A special assessment is essentially an unplanned bill that you have no choice but to pay. They often signal that the reserve fund was poorly managed or that an unexpected issue arose. Before buying a condo, check the status certificate for any pending or planned special assessments -- they can significantly impact your costs.
Real-World Example
A 25-year-old, 180-unit condo building in North York discovers its underground parking garage membrane is failing and water infiltration is corroding the structural steel. The repair estimate comes in at $3.6 million, but the reserve fund only has $1.1 million earmarked for this work. The board passes a special assessment of $14,000 per unit, payable in three installments over 12 months. Owners who purchased their units just months ago are hit with the same bill as long-term residents.
Ontario & GTA Context
Under the Ontario Condominium Act, 1998, the condo board can levy special assessments for necessary common element repairs. Owners cannot refuse to pay -- unpaid amounts become a lien on the unit under Section 85 of the Act, and the corporation can register that lien on title. The lien must be cleared before the unit can be sold. For very large expenditures, some condo by-laws require a vote at an owners' meeting.
How It Works in Practice
When reviewing a status certificate, look specifically for any mention of planned or pending special assessments in the board minutes and financial statements. If you see one coming, factor the full amount into your purchase decision. If you are an existing owner, attend AGMs and review board meeting minutes regularly so you are not blindsided.
Common Questions
Can I refuse to pay a condo special assessment in Ontario?▾
How much can a condo special assessment be?▾
Is a special assessment a sign of a badly managed condo?▾
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