Why do special assessments happen?
Common reasons include an unexpected repair, insurance cost, legal expense, major project, construction defect or a reserve fund that cannot fully cover required work.
What buyers should investigate
- Whether an assessment is approved, proposed or only discussed.
- The total project cost and each unit’s share.
- Payment dates and whether the seller has paid.
- What work the assessment funds and whether costs may change.
- Whether additional phases or related repairs may follow.
What sellers should prepare
Gather current notices, minutes, information statements and payment evidence. Disclose material information as required and discuss contract treatment with your real estate lawyer and Realtor.
Can a special assessment ever be reasonable?
It may fund necessary work that protects the property, but buyers must understand affordability, project scope, execution risk and what the assessment says about longer-term planning.