Legal Impacts of Special Assessments

Special assessments in condominiums can be daunting as they demand unexpected cash beyond the regular budget requirements. To avoid fear and potential conflicts, boards should be proactive in their approach. Realistic and accurate budgeting can help reduce the need for special assessments. Effective communication strategies should be employed by the board and property management to help owners understand the reasons for the special assessment and how it will be implemented. Cash flow issues should also be considered, and special assessments may need to be broken into installments or delayed in certain circumstances. The authority for a special assessment comes from the operating bylaws and the Condominium Act, 1998. Challenging a special assessment may have limited value, so it is essential to focus on the necessity of the assessment, due diligence, proper implementation, and timely communication with owners. Failure to pay a special assessment can lead to a lien and power sale, but these can be avoided with careful planning.