Condo Special Assessments Explained: How a $10,000 Bill Happens (2026)
When a condo’s reserve fund can’t cover a big repair, every owner gets a one-time bill, often five figures. How assessments are levied and what to check first.
A special assessment is a one-time charge the condo corporation levies on every owner when a needed expense exceeds what the reserve fund and operating budget can cover: a roof, a parking garage membrane, a boiler, a lawsuit, an insurance deductible. It is allocated by each unit's percentage of common-expense contribution, so a $2 million project in a 200-unit building averages $10,000 per unit, more for larger units. The board can levy it by resolution in most provinces without an owner vote. It is due on the schedule set by the board, is a lien on the unit if unpaid, and, for buyers, is the single largest cost that a status certificate can warn you about.
The CostToClose guided buying flow flags reserve-fund review on every condo purchase.
How it is calculated
| Item | Amount |
|---|---|
| Project cost (garage membrane and boiler) | $2,100,000 |
| Reserve fund available | $800,000 |
| Shortfall to assess | $1,300,000 |
| Units | 200 |
| Average per unit | $6,500 |
| A 1,100 sq ft unit at 0.65% of common expenses | $8,450 |
| A 600 sq ft unit at 0.35% | $4,550 |
The percentages are in the declaration; your share of the assessment equals your share of the common expenses.
Who pays when a unit is sold
- Levied before closing: the seller's, unless the agreement says otherwise. Standard forms make the seller responsible for assessments levied before closing even if payable in instalments afterward; check the wording.
- Levied after closing: the buyer's, even if the underlying problem was known. This is why the status certificate's disclosure of contemplated assessments matters.
- Disclosed in the status certificate as "under consideration": legally still the buyer's if levied after closing, but a strong basis to negotiate a price reduction or a holdback.
Spotting the risk before you buy
In the status certificate (Ontario), Form B and depreciation report (BC), or estoppel certificate (Alberta):
- Reserve fund balance versus the fund study's recommended balance: a 30% shortfall is a warning, and 50% is a near certainty.
- Age of major components (roof, windows, garage, elevators, mechanical) against expected life.
- Minutes referencing engineering reports, "reserve fund study update," or "funding options."
- Insurance deductible amounts; some buildings pass $50,000 to $100,000 water deductibles to the responsible unit.
- Recent or pending litigation.
Ask your lawyer for a specific opinion on assessment risk, not just "the certificate is clean."
Paying it
Boards usually allow a lump sum or instalments over 6 to 24 months. Owners without cash use a HELOC (if they have one), a lender's condo-assessment loan product (a few offer them), or, at a cost, a refinance. Unpaid assessments are a lien with priority over the mortgage in most provinces; the corporation can ultimately force a sale.
Worked example from the calculator
Buyer considering a $520,000 unit in a 1988 building; status certificate shows reserve at $800,000 against a study recommending $1.9 million, and minutes referencing a garage engineering report:
| Item | Amount |
|---|---|
| Likely assessment per unit within 2 years | $5,000 to $8,500 |
| Negotiated price reduction | $8,000 |
| Or: holdback in trust pending the board's decision | $8,500 |
| Alternative: 2019 building at the same price, reserve on plan | $0 expected |
The $100 certificate identified an $8,000 exposure. Reproduce the purchase numbers.
Frequently asked questions
What is a special assessment in a condo?
A one-time charge to owners for expenses the reserve fund and budget cannot cover, allocated by each unit's percentage share.
Who pays a special assessment when a condo is sold?
Assessments levied before closing are generally the seller's; those levied after are the buyer's. Assessments disclosed as under consideration are a negotiating point.
Can I refuse to pay a special assessment?
No. It is a common expense; unpaid amounts become a lien on the unit with priority over the mortgage in most provinces.
Do owners vote on special assessments?
Usually not. Boards can levy them by resolution; owners can requisition a meeting but rarely reverse a needed assessment.
How can I avoid buying into a special assessment?
Read the reserve fund study and minutes in the status certificate, compare the fund balance with the recommended level, and make the offer conditional on a satisfactory review.
Sources
- Condominium Act, 1998 (Ontario) — common expenses, liens and status certificates — checked 14 Sept 2026
- Strata Property Act (British Columbia) — special levies — checked 14 Sept 2026
- Condominium Property Act (Alberta) — special assessments and estoppel certificates — checked 14 Sept 2026
- Condominium Authority of Ontario, guidance on special assessments — checked 14 Sept 2026
This guide is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It is not legal, tax, or mortgage advice. Rules and rates change; confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.