What is a condo special assessment and can I refuse to pay it in Ontario?
A special assessment is an extra charge to owners, and refusing to pay it carries real consequences. A board can levy a special assessment through common expense fees without owner approval, although the governing documents may contain provisions about special assessments. Each owner's share uses the same percentage as their common expense fees.
An unpaid special assessment gives the corporation a lien on the unit, covering the unpaid amount, interest and all reasonable legal costs of collecting it. Under the general lien process, the lien expires after three months unless the corporation registers a Certificate of Lien, and the owner first gets a Notice of Lien. If the owner pays, the corporation must discharge the lien. The corporation can start the power of sale process 15 days after registering a Certificate of Lien.
Whether a particular assessment can be challenged depends on the governing documents and on how the board went about it. A lawyer can review your notice and your building's documents before you decide whether to pay or dispute it.
Key takeaways
- A board can levy a special assessment through common expense fees without owner approval, although the governing documents may have provisions about it.
- Each owner's share uses the same percentage as their common expense fees.
- An unpaid special assessment gives the corporation a lien on the unit covering the unpaid amount, interest and all reasonable legal costs of collecting it.
- Power of sale can start 15 days after a Certificate of Lien is registered.