What is a special assessment in a condo and can I be forced to pay one in Ontario?

A special assessment is a one-time charge levied by the condominium corporation on unit owners when the reserve fund or operating fund runs short of money needed for an unexpected or underestimated expense. Common triggers include emergency repairs (a failing roof, flooded parking structure, elevator replacement) or a reserve fund that wasn't adequately funded over the years.

Yes, you can be legally required to pay a special assessment. The amount each owner pays is typically proportional to their unit's common interest percentage as set out in the declaration. Special assessments can range from a few hundred to tens of thousands of dollars per unit depending on the scope of the project and the number of units sharing the cost.

The best protection against surprise assessments is reviewing the reserve fund study and the corporation's financial statements before you buy. A depleted or underfunded reserve is a red flag. Some buyers include a condition in their offer allowing them to review the status certificate and financials before waiving conditions.