If the Condominium has a short-fall in the operating budget or reserve fund, or unforeseen events occur (for example, a rise in heating costs or a need for a major repair or renovation, the higher cost will necessitate an increase in your contribution.

When this happens, each owner could be given a special assessment charge. The amount owed by each owner is calculated by the percentage of ownership, or unit factor as previously discussed. The amount owed by the owner may be either added as a lump sum to one month of an owner’s regular monthly condominium fees, or, it could be spread over a period of time by increasing a number of monthly condominium fees.

Special assessments are uncommon but in some cases, such as where funds are needed for major repairs, they can be substantial. This is why it is important to review the financial statements, reserve fund level, building condition surveys, inspection reports, maintenance history and the status certificate for the corporation before you commit to buying.

If you need a professional to help you with buying a condo, please click here.

Are you looking for a Mississauga Realtor who can help you sell your home quickly? Are you looking for someone to help you find your dream home? If you answered 'yes' to either of these questions, please call John Morrison at Right At Home Realty Inc. who is in the business of making your home buying and selling dreams come true. Please call me on my cell at 416-568-2414.