Short answer
The agreement of purchase and sale, assessment dates, payment schedule and legal adjustments determine who pays. Do not assume the seller pays because the assessment was announced before closing or that the buyer pays because instalments continue afterward. Put the allocation in writing and have the lawyers confirm it.
The buyer’s real concern
A condominium purchase includes the unit and a financial relationship with the corporation. The client needs to know whether the documents, monthly cost, future repairs, rules and lender acceptance support the way they intend to live, rent or eventually sell.
A practical Ontario example
Illustration only: A $24,000 assessment is approved before an offer, payable over two years. The seller offers to cover instalments due before closing, but the buyer would inherit the rest. The buyer compares the total price plus remaining assessment and asks the lender whether the obligation affects approval.
What to review now
Obtain the assessment notice, total amount, unit share, instalment dates, purpose, collection status and any available project information. The lawyer should confirm wording in the offer and statement of adjustments.
Do not review the unit in isolation
The unit may look excellent while the corporation faces expensive repairs, litigation, insurance problems or a funding shortfall. The reverse is also possible: a well-run corporation can still have a unit-specific problem. Review both levels before removing conditions.
Questions Rajiv would ask
- Is this a resale or newly registered condominium?
- Will you occupy it, rent it or use it part-time?
- What do current fees include, and can your budget absorb an increase?
- Has the lawyer reviewed the current status package?
- Has the intended lender accepted the condominium?
- Which document or deadline remains unresolved?
Practical options
- Negotiate a seller payment, price adjustment or holdback through the lawyers.
- Accept the assessment only after including it in affordability and resale analysis.
- Keep a financing condition if lender acceptance is not confirmed.
- Choose another building when the work, funding or disclosure remains too uncertain.
How financing fits
A strong borrower can still face a property decline. A lenders, insurers and alternative lenders review condominium risks differently, including litigation, insurance, marketability, commercial concentration and building condition. A MIC or private lender may consider a short-term solution when equity and exit are strong, but it should not be used to hide a property problem the buyer has not understood.
Who should answer each question?
- Condo lawyer: status certificate, title, documents, assessment and legal exposure.
- Realtor: comparable sales, building history, negotiation and offer protection.
- Inspector: observable unit condition and accessible systems.
- Insurance professional: unit-owner coverage and deductible exposure.
- Mortgage broker: lender acceptance, qualification, payment and backup routes.
Facts, lender policy and assumptions
Verified public guidance: CAO describes a special assessment as an extra charge used to cover a condo corporation budget shortfall. An owner’s share is generally based on the same proportion used for common expenses.
Lender policy: property acceptance and mortgage treatment vary by lender. Legal advice: the buyer’s lawyer interprets the documents and agreement. Assumption: past fees, repairs and resale performance do not guarantee future results.
Pressure-test the purchase
Model a higher condo fee, a special assessment, an insurance increase, delayed repair and a slower resale. If one ordinary condo expense makes the household budget unworkable, reduce the price range or choose a building with a more comfortable cost profile.
Documents to gather
- Current status certificate and attachments
- Declaration, bylaws and rules
- Budget, financial statements and reserve-fund study
- Insurance certificate and standard-unit definition
- Assessment, litigation or major-project notices
- Agreement, listing and parking or locker details
Related AskRajiv guidance
Continue with condo reserve fund study buyer review ontario, condo status certificate special assessment mortgage approval.
Discuss the condo before the financing deadline
Use Rajiv’s direct mortgage strategy contact form. Include the building, unit, price, deadline and document concern so the lender review starts with the property issue.
Need a condo professional?
Use Rajiv’s Professional Referral Concierge for a relevant introduction based on the location, property and deadline.
Source and review
Read the primary source. Source checked 2026-09-03. Reviewed by Rajiv Verma, Mortgage Broker on 2026-09-03. Educational information only; not legal, insurance, appraisal, real-estate or mortgage approval advice.