What is a condo special assessment and how does it affect my purchase in Ontario?

A special assessment is a charge levied on all unit owners in a condominium corporation to cover expenses that cannot be funded from the corporation's regular reserve fund or operating budget. Common causes include major unexpected repairs (roof replacement, parking garage waterproofing, elevator overhauls), insufficient reserve fund contributions over the years, or losses not covered by insurance.

Special assessments can range from a few hundred to tens of thousands of dollars per unit, and they are typically non-negotiable — if you own the unit when the assessment is levied or when it comes due, you pay it. When you purchase a condo, you need to know whether any special assessment has already been approved or is anticipated, because that liability could effectively transfer to you.

The status certificate discloses approved special assessments. However, assessments that have not yet been formally approved — even if they are under serious discussion — may not appear in the certificate. This is why your lawyer reviews the corporation's financial statements and recent meeting minutes included in the status certificate package, looking for early warning signs.