What is a "special assessment?"

A special assessment is an additional payment or a levy that a condo board has to impose when unexpected shortfalls or unexpected expenditures occur in the budget, or when an expensive system (such as the boiler) has to be replaced and there is not enough money in the reserve fund to cover it. In order to be levied, a special assessment must be approved by owners owning 66.66 percent of the common elements. When a condominium is resold, the seller must disclose any existing or pending special assessments.