A special assessment is a one-time charge that a condo corporation bills owners, on top of their regular monthly fees, to cover a cost the reserve fund or budget can't, such as an urgent repair, a project that ran over budget, or legal costs. Under Ontario's Condominium Act, 1998, owners must pay it, and each unit's share is calculated using the same percentage as its regular condo fees.
According to the Condominium Authority of Ontario (CAO), the board can levy one without a vote of the owners, unless the corporation's own declaration or by-laws say otherwise. If an owner doesn't pay, the corporation gets a lien on the unit, the same as for unpaid monthly fees.
Why special assessments happen
Special assessments happen when a condo corporation needs money it doesn't have. The CAO, the provincial body that supports condo owners and runs the Condo Authority Tribunal (CAT), lists three common reasons:
- Unforeseen expenses. Something major fails earlier than planned, such as a boiler, a roof or a parking garage membrane.
- Under-budgeting. A planned project costs more than the corporation set aside, or the reserve fund was underfunded for years.
- Litigation. The corporation needs money for legal fees or a court award.
Most of these trace back to the reserve fund, the corporation's savings account for major repairs and replacements. Ontario's Condominium Act, 1998 requires every corporation to have a reserve fund study, a professional forecast of repair costs, and to fund the reserve based on it. When contributions are kept low to hold fees down, or costs rise faster than forecast, the gap eventually shows up as higher fees, a special assessment, or both.
How much special assessments are and how they're split
There's no typical amount for a special assessment. One can be a few hundred dollars per unit or many thousands, depending on the cost of the project and how many units share it.
Each unit pays the same percentage of the assessment as it pays of the regular budget. That percentage is set in the building's declaration, mostly by unit size, and it appears on your status certificate and in the corporation's records. As a simple example, a $500,000 repair in a 100-unit building averages $5,000 per unit, but a larger unit with a bigger percentage pays more than a smaller one.
The corporation tells owners how much they owe and when. It can be billed as a single lump sum or spread over several installments. Your bank or lender may be able to help with financing; whether to borrow to pay one is a decision to talk through with them.
Can you refuse or dispute a special assessment?
You can't refuse to pay a special assessment. Under the Condominium Act, owners must pay their share of the common expenses, which includes special assessments, and disagreeing with the board's decision doesn't change that. If you don't pay, the corporation automatically has a lien on your unit for the unpaid amount, interest and its reasonable collection costs. If it registers the lien, it can eventually sell the unit to recover what's owed.
What you can do is question how the decision was made:
- Ask for the records. Owners have a right to examine the corporation's records, such as the reserve fund study, board minutes, contracts and quotes behind the assessment. Disputes about access to records can go to the CAT, Ontario's online tribunal for condo disputes.
- Check the governing documents. The CAO notes that a corporation's declaration and by-laws may contain rules about special assessments, which the board has to follow.
- Raise it with the board, in writing, or at the annual general meeting.
- Requisition an owners' meeting. Owners of at least 15% of the voting units can sign a requisition asking the board to call a meeting. The CAO notes that owners generally can't overturn a board decision at that meeting, but they can, for example, vote to remove and replace directors.
- Get legal advice. The CAT can't hear most disputes about common expenses or special assessments themselves; its jurisdiction covers areas such as records, pets, vehicles, parking and storage, and nuisances. Disputes outside its jurisdiction go to the Ontario Superior Court of Justice. Talk to your lawyer about whether you have grounds.
Keep paying while you dispute. A lien and legal costs can quickly add more than the assessment itself.
Some changes to the common elements need owner notice or approval under the Condominium Act, depending on their size and whether they're a repair or an improvement. If an assessment funds an addition or improvement rather than a repair, ask your lawyer whether those rules apply.
Buying a unit with a special assessment pending
If you're buying a resale condo, the status certificate must disclose, under the Condominium Act, any special assessments levied on the unit since the current year's budget, and the reason. Your lawyer reviews it before your offer is firm, which is your chance to find one before you're committed.
Who pays depends on timing and on your agreement. In general, the person who owns the unit when an amount comes due is the one billed for it, so a buyer can inherit installments that fall due after closing. That's why it's negotiated in the offer. Common approaches include:
- A lower price that reflects the assessment
- The seller paying it in full before or on closing
- A credit to the buyer on closing for the amount still owing
Your lawyer and agent can write the terms. Make sure the offer covers assessments that are planned but not yet levied, as well as those already billed.
The status certificate is also binding. The CAO points to a 2023 Ontario Superior Court decision involving a Waterloo condo, in which a buyer didn't have to pay their share of a special assessment because the status certificate hadn't clearly disclosed that one was likely. The right answer for your situation is still a question for your lawyer. What to look for in a status certificate →
How to spot the risk early
You can't rule out a special assessment, but some buildings carry much more risk than others. Before you buy, or as an owner watching your own building, look at:
- The reserve fund study. Ontario requires a full study in a corporation's first year, then updated studies at least every three years, each projecting at least 30 years ahead. Look for large items coming due in the next five years and whether the fund can cover them.
- The Notice of Future Funding. After each study, owners receive this notice showing planned increases in reserve contributions. Steep increases are a sign the fund is catching up.
- Fee history. Fees held flat for years in an older building can mean the reserve fund fell behind.
- Board minutes. Talk of engineering reports, quotes for major work or financing often comes before an assessment.
- Lawsuits. Litigation disclosed in the status certificate can lead to legal costs or repairs.
- Known building issues. For example, Kitec plumbing in buildings from about 1995 to 2007, which may need replacing. Read the Kitec guide →
Compare the building's fees with others in the area too. Unusually low fees can be a sign of underfunding, not a bargain. See median condo fees by city and building age →
If you own a condo with an assessment coming
A special assessment doesn't stop you from selling, but buyers will see it in the status certificate and factor it into their offers. If you're thinking of selling, it helps to know what your unit is worth and how much the assessment might shift that.
Track what your home is worth →
If you're buying instead, include the assessment in your budget alongside fees and closing costs. See what you can afford with your own numbers →