A condo assessment is due after closing. Who pays?

You’re buying a resale condo. An extra charge is due a week after closing. Does that make it your bill? Don’t guess from the calendar. Give your lawyer the assessment notice and the purchase agreement while there’s still time to clarify who pays.

Get the notice and the unit’s balance

A special assessment is a separate charge from the regular condo fee. Ask for the notice showing the amount allocated to this unit and the payment dates. Then ask for an up to date account statement showing what has actually been paid. The status certificate is part of that review. If the notice is newer than the certificate, flag both dates for your lawyer rather than assuming the older document answers the newer question.

Walk through the two payments

Here’s a made up example. The unit’s share is $3,600, due in two $1,800 instalments. The first was due before closing and the second is due a week after. If the first payment cleared, the remaining balance is $1,800. If it didn’t, the unpaid principal could still be $3,600, before any other amounts. Same notice, same closing date, different balance. Neither balance tells you by itself how the buyer and seller agreed to handle the charge.

Ask your lawyer to separate two questions: what does the corporation show as owing, and what does the purchase agreement say each party must cover? If the agreement leaves room for doubt, ask what can still be clarified in writing. If you are already under contract, ask which deadlines apply before assuming you can change anything. If a payment will be handled at closing, ask your lawyer where you’ll see it on the closing paperwork.

Keep three numbers handy: the original assessment, the unpaid amount and the amount your lawyer says to budget. They may be different. The date on the notice is useful. It isn’t the whole answer.

General buyer education, not legal or financial advice. Illustrative cover: Toronto waterfront condominiums by Milan Suvajac, 2019, CC BY-SA 4.0. No building shown is being assessed or offered for sale.