When purchasing a condo, it’s easy to become focused on the purchase price and what the monthly payments will be; however, there are other expenses that you’ll also have to pay. A condo special assessment is one of those. This is an additional charge that a condo association imposes on unit owners.
The condo special assessment is separate from regular monthly assessments. It’s used to cover unexpected expenses, insurance shortfalls, legal costs, reserve funding gaps or major repairs. These can be stressful for condo owners because they often involve large amounts that are due on a set schedule. In some cases, condo boards may allow owners to pay the special assessments in installments.
Why are special assessments necessary?
Special assessments are necessary because they maintain the property in specific cases. Some of the more common reasons include roof replacement, storm damage, structural repairs, elevator work, concrete restoration or plumbing failures.
Condo boards can’t charge special assessments when they feel like it. Instead, the condo bylaws and declarations govern how often special assessments are approved and collected. Some assessments can be approved by the board, but others require owner approval.
How do condo owners find out about special assessments?
Condo owners should receive a written notice about the special assessment. It should include the purpose of the assessment, payment deadlines, total assessment amount, voting requirements and consequences for nonpayment. Reading through this notification is critical so owners know exactly what it’s for and what action they need to take.
Special assessments are a routine part of owning a condo, but they can lead to financial challenges. In some cases, they can raise legal questions. It may be beneficial to work with someone familiar with this area of real estate law if there are issues with a special assessment.
