Owning a condo in Edmonton comes with shared responsibility for the building, and every so often that means a special assessment, an unexpected bill on top of your regular condo fees. If you’re planning to sell while an assessment is pending or recently passed, here’s what you need to understand.
What Is a Special Assessment?
A special assessment is a one-time charge condo corporations levy on owners to cover costs the reserve fund can’t absorb, such as a roof replacement, envelope repairs, or an elevator overhaul. Depending on the building and the scope of work, these charges can range from a few thousand dollars to tens of thousands per unit.
How It Affects a Sale
An outstanding or upcoming special assessment can complicate financing, since some lenders factor it into a buyer’s debt load, and it can also make buyers nervous about what other costs might be coming. Sellers are typically responsible for the balance owing at the time of closing unless the purchase agreement specifies otherwise.
Disclosure Obligations Are Real
Alberta sellers must disclose known or pending special assessments to prospective buyers, and condo document packages, including the estoppel certificate, will reveal them regardless. Trying to sell around this information isn’t a realistic strategy and can create legal exposure.
Selling Before or After an Assessment
Some owners choose to sell before an assessment is finalized to avoid the cost altogether, while others wait until the work is complete because a freshly renovated building can support a higher price. If you’re facing a large assessment and want a clean exit without negotiating the balance with a buyer, selling directly is often the simplest route.
If you’d like to talk through your options with no pressure and no obligation, give us a call at 587-401-2627 or fill out the form on our website today.