Should I disclose special assessments?
Thinking of Hiding a Special Assessment? Don’t — It Can Sink Your Sale and Cost You Thousands
Quick answer
Yes. Disclose known special assessments. Hiding them risks lawsuits, rescinded offers, lost trust, and lower sale prices. Transparency speeds sales and keeps buyers and lenders confident.
What is a special assessment?
A special assessment is a one-time charge by your condo corporation to cover unexpected repairs or shortfalls in the reserve fund. It’s different from monthly maintenance fees. It’s material information. Buyers and mortgage lenders care.

Why disclosure matters — legal and market reasons
- Legal risk: In many markets sellers must disclose known material facts. Failure can lead to claims for damages or rescission. Always confirm local rules with your lawyer or real estate professional.
- Financing risk: Lenders and appraisers review condo status. A surprise assessment can kill financing or lower appraisal value.
- Market trust: Buyers walk when they feel tricked. Price may drop or offers may disappear. Being upfront attracts serious buyers faster.
Actionable checklist: How to disclose special assessments
- Get the facts now: Order the condo status certificate (or equivalent), request minutes and notices from the property manager, and confirm the assessment amount, timing, and who pays.
- Put it in writing: Add the assessment to your property disclosure form and your MLS remarks where appropriate. Don’t bury it in documents.
- Show proof: Attach the condo notice or minutes to your disclosures. Buyers want evidence, not vague statements.
- Price or negotiate accordingly: Price the condo with the assessment in mind. Offer a credit, reduce the price, or show proof the seller will cover a portion. Be explicit in the offer terms.
- Consult professionals: Talk to your real estate lawyer, your listing agent, and your accountant. They’ll advise on liability and tax treatment.
Pricing and negotiation tactics that work
- Pre-pay and close clean: If you can afford to pay the assessment before closing, do it. Removes buyer friction.
- Offer a credit: If you can’t pre-pay, offer a dollar credit at closing. Buyers and lenders prefer clarity.
- Split the cost: Offer to cover part of the assessment to keep the sale moving.
Bottom line
Don’t hide special assessments. Disclosure reduces legal exposure, protects financing, and speeds the sale. Buyers respect transparency; markets reward it.
Need a local expert who sells condos and handles assessments so deals close cleanly? Contact Tony Sousa — local condo specialist. Email: tony@sousasells.ca | Phone: 416-477-2620 | https://www.sousasells.ca
Disclaimer: This post is for general information. Laws vary by jurisdiction. Consult your lawyer or licensed real estate professional for legal advice.



















