09/19/2018
What You Need To Know!
As a prospective condo unit holder, it is important to ask if there are any pending or on-going condo assessments. Special assessment fees can dramatically increase a total monthly payment, depending on a repair.
Requesting a history of condo assessments is also important for prospective homeowners. If a condominium has a history of special assessments, it’s important to inquire about the integrity of the build before purchasing. It's also helpful to ask about the condo reserve fund and its readiness for future repairs and upgrades.
Condo assessments in new developments are unlikely. New developments benefit from durable, high-quality materials and are backed by a new home warranty. In the rare event an assessment does occur, condo fees and reserve funds usually cover the vast majority of repairs, both on-going and long-term. As a general principle, it’s wise to take a good look at the history of a condominium building and understand the fee structure, prior to purchasing a unit.
