Condo Special Assessments in Ontario: The Surprise Bill Buyers Need to Check For

Condo fees fund day-to-day operations plus a reserve fund for major future repairs — elevators, the garage, the building envelope, the roof. When a big expense lands and the reserve fund falls short, the corporation can’t conjure money; it levies the shortfall across owners. That’s a special assessment.

Under section 84 of the Condominium Act, 1998, each owner pays their proportionate share of common expenses, set by the percentage in the corporation’s declaration. Larger units pay more, smaller units pay less.

Why a special assessment suddenly appears

Common triggers:

• A chronically underfunded reserve (fees set too low, historic shortfalls);
• A large unplanned repair (garage structure, fire system, envelope leaks);
• A big insurance deductible (the corporation’s share of a flood or fire claim);
• Litigation or a dispute with the developer.

Critically, the board can generally levy without an owner vote unless the declaration or by-laws say otherwise — so you may have no veto.

How to spot the risk before you buy: read the reserve fund study

Under section 94(1) of the Condominium Act, 1998, every corporation must complete a reserve fund study at least every three years, prepared by qualified professionals such as engineers, projecting major repairs and funding needs over roughly 30 years. That study — together with the status certificate — is the document you most want before buying. Look for:

• Current reserve balance versus the study’s recommended target — a wide gap signals risk;
• Whether fees are rising on plan each year (flat fees can be a warning, not a perk);
• Any recent special assessment, or a study flagging a major repair as imminent.

The status certificate discloses whether the unit is in arrears, any known or proposed special assessment, the reserve fund’s health, and any litigation. On a resale condo, having a real estate lawyer review it during your condition period is the single most effective way to avoid a nasty surprise. Don’t waive conditions until that review is done.

What happens if it goes unpaid

Under section 85 of the Condominium Act, 1998, unpaid common expenses — including a special assessment — become a lien on the unit. That can affect your financing and, in the extreme, let the corporation force a sale to recover the debt. A special assessment is not optional.

• New vs. older buildings: condos at 20–30 years hit their major-repair window and feel reserve pressure; in brand-new buildings, watch for low introductory fees and a reserve starting from zero.
• Use your conditions: make reviewing the status certificate and reserve fund study a condition of your offer, with a lawyer checking it.
• Ask for the last three years of fee history and any assessment record.
• Don’t shop on fee level alone: unusually low fees can mean a starved reserve and a higher chance of a future special assessment.

Q: How much is a typical special assessment?

There’s no fixed amount — it depends on the total repair cost and your unit’s share. It can range from a few hundred dollars (your portion of an insurance deductible) to tens of thousands (major garage or envelope work). Your share is set by your unit’s common-expense percentage in the declaration.

Q: Can the board charge me without a vote?

Usually yes. Under the Condominium Act, 1998, unless the declaration or by-laws provide otherwise, the board can levy a special assessment directly and owners generally have no veto — which is exactly why pre-purchase due diligence matters.

Q: How do I know before buying whether a building is at risk?

Read two documents: the reserve fund study (updated at least every three years) and the status certificate. The study reveals funding gaps and looming repairs; the certificate discloses any proposed assessment, arrears, and litigation. Have a real estate lawyer review them during your condition period.

Q: What if I refuse to pay a special assessment?

The unpaid amount becomes a lien on your unit, which can affect your financing and, in serious cases, allow the corporation to force a sale to recover the debt. It is a mandatory common expense, not a discretionary fee.