Definition
A special assessment is an exceptional amount each co-owner must pay to the corporation to finance unexpected work or expenses that the reserve fund cannot cover.
Common causes: - End-of-life roof not budgeted in reserve fund study - Emergency foundation repair after a disaster - Electrical or accessibility upgrades mandated by the city - Legal disputes generating unexpected costs
Amount: can range from a few hundred to several tens of thousands of dollars per unit depending on the scope of work and the co-owner's fractional share.
Mortgage impact: - An ongoing special assessment can affect property value and lender decisions - Some lenders ask if special assessments are voted or anticipated before approving a purchase - A buyer who purchases a property with a voted special assessment is responsible for future calls, even if the decision predates their purchase
Protection: review the last 3 years of corporation meeting minutes before buying.