The words “special assessment” bring goosebumps to many condo owners & with good reason! These additional fees can appear to come out of nowhere if you don’t approach your condo purchase properly & do your homework on the building!
A special assessment occurs when there are repairs that need to made to a condo building but the existing reserve fund doesn’t have enough cash on hand to cover the expense. As a result, owners are left with an additional lump sum that they must pay to cover the costs.
While most buyers know about the monthly maintenance fees you have to pay as a condo owner, many are unaware of the fact that these condo fees can increase at any time!
These fees are typically based on a monthly amount which you can easily budget for, however should the building need repairs or have to pay for a lawsuit, you can end up with an additional cost that can be hard to predict!