Ask a real estate pro: What can we do about new apartment’s surprise special assessment?
Q: We are in the process of purchasing an apartment. Our closing attorney received the report from the condominium association showing the monthly dues were current, and we were surprised to learn that a special assessment was pending because the sellers told us that none were. The contract also says that no special assessments are pending. We did not anticipate this additional financial burden when offering to buy the apartment. What can we do? — Duane
A: I have been seeing this type of question a lot lately, as many condominium communities face special assessments because of delayed maintenance, insufficient reserves and tougher community association laws.
When a community association needs extra money for a specific project, such as making repairs, it can “specially assess” unit owners to get the necessary funds. Like the regular assessments the association collects to maintain the community, special assessments must be paid to avoid serious consequences. The assessments vary from a couple of thousand dollars to over a hundred thousand. The amount will depend on the repairs required and how much reserves were postponed.