Condo Special Assessments In Ontario Explained

Worried about a surprise condo bill you did not plan for? You are not alone. Many Unionville and Markham condo owners and buyers hear about special assessments and want to avoid costly surprises. In this guide, you will learn what special assessments are, why they happen in Ontario, and how to spot the risk early using the status certificate and other documents. You will also get a practical checklist tailored to 1980s–1990s buildings common in Markham. Let’s dive in.

What a special assessment is

A special assessment is an extra levy your condo corporation can charge when regular revenues and the reserve fund are not enough to pay for required work on the common elements. The Condominium Authority of Ontario explains that corporations must maintain common elements and plan for major repairs through a reserve fund, but unexpected costs or shortfalls can still arise. You can read more from the Condominium Authority of Ontario.

In plain terms, if your building needs big repairs and the savings are not sufficient, the board can levy owners to cover the gap. These levies are legally binding and can be billed in one payment or in installments.

Why assessments happen in Ontario

Ontario’s Condominium Act sets the rules for budgeting, financial reporting, and maintaining a reserve fund for capital repairs. The Government of Ontario’s condominium resources provide consumer information about these obligations.

Special assessments typically occur when:

• The reserve fund is underfunded or outdated compared to current construction costs.
• An emergency failure happens, like a major boiler breakdown or significant water infiltration.
• Tendered construction bids come in higher than expected after an engineering study.
• Insurance deductibles or non-covered losses must be paid by the corporation.
• Litigation, warranty disputes, or municipal orders require costly remediation.

Markham buildings from the 1980s–1990s: what to watch

Many Unionville and Markham condos built in the 1980s–1990s are reaching the age where major components need renewal. You see this era in well-known local complexes. While every corporation is different, buildings from this vintage commonly face:

• Windows and glazing replacement. Seals and aluminum frames can fail over time. Full façade programs are expensive and often exceed reserves if not planned for early.
• Balcony waterproofing and guardrail remediation. Safety concerns can accelerate timelines and force building-wide work.
• Parking garage waterproofing and concrete repairs. Structural and coating work in garages is disruptive and costly.
• Building envelope remediation. Caulking, flashing, and cladding repairs prevent water ingress but often require specialized contractors.
• Mechanical plant replacement. Boilers, pumps, and domestic hot water systems approach end of life roughly 25–40 years after installation.
• Elevator modernization. Reliability, code updates, and control upgrades can require large capital projects.

If reserves have not kept up with these lifecycles, a special assessment or sharp fee increase becomes more likely.

Your best tool: the status certificate

When you buy a resale condo in Ontario, the seller provides a status certificate. It is your primary source of truth about the corporation’s financial health. The certificate discloses current budgets, the reserve fund balance, any existing or proposed special assessments, and known legal matters. Learn the basics from the Condominium Authority of Ontario.

Read the certificate and all attachments carefully. If it mentions an assessment or a major project, ask for the timing, per-unit allocation, and payment schedule. Your lawyer can review the documents and help you decide if conditions or price adjustments are appropriate.

How to check the risk before you buy

You can reduce surprises by following a simple process:

1. Read the status certificate end to end. Confirm if there is an existing or proposed assessment and whether the board has passed a resolution.

2. Compare the reserve fund to near-term needs. Use the reserve fund study to see what work is planned in the next 5–10 years and the estimated costs.

3. Request engineering reports and tender results. If a big project is planned, ask for consultant reports and the contractor bids. Look for increases between study estimates and real bids.

4. Check the last 2–3 years of financial statements and budgets. Sudden fee increases, low reserve contributions, or high arrears indicate stress.

5. Ask about phasing vs one-time replacement. Phased projects can spread cost but may increase total spend and risk of repeated levies.

6. Confirm insurance coverage and deductibles. High deductibles or coverage gaps can lead to owner-funded costs.

Key questions to ask management

• Has the corporation levied any special assessments in the last 10 years? How much and for what?
• When was the last reserve fund study completed? What are the next 5 years of projects and costs?
• Have any recent construction tenders come in higher than the study estimates? By how much?
• Are there pending lawsuits, warranty claims, or municipal orders?
• What is the current insurance deductible and are there exclusions owners should know about?
• Does the corporation offer installment plans for assessments?

Document checklist for buyers

Use this checklist before you waive conditions or finalize an offer:

• Status certificate and all schedules or addenda
• Most recent reserve fund study and any updates for the past 10 years
• Last 2–3 years of financial statements and the current year budget
• AGM and board minutes from the last 12–24 months
• Recent engineering reports, building condition assessments, and envelope audits
• Contractor bids or tender results for planned work
• Insurance declarations page and policy summary
• Disclosure of pending or ongoing litigation or municipal orders
• History of past special assessments and major capital projects over 10–20 years
• Arrears summary and percentage of units in arrears
• Declaration, by-laws, rules, and key service contracts that affect finances

Financial red flags that deserve a closer look

You do not need to be a CPA to spot warning signs. Focus on:

• Reserve fund balance vs upcoming projects. A large gap signals likely fee increases or assessments.
• Out-of-date reserve fund study. If it is older than 3–5 years, the plan may not reflect current prices.
• Repeated emergency assessments. Multiple events in a short period may point to deferred maintenance.
• Big jumps from study estimates to tender bids. Cost escalation can force new levies.
• High common expense arrears. If several percent of the budget is unpaid, cash flow is tight.
• Large insurance deductibles or exclusions. These can push costs back to owners.
• Pending litigation or municipal orders. Legal or safety-driven work often cannot be deferred.

For broader governance standards and best practices, you can also visit the Condominium Management Regulatory Authority of Ontario.

Payment and your options

When a board levies a special assessment, it will pass a resolution and set a payment schedule. Some corporations require upfront payment. Others offer installments or payment plans. Policies vary, so ask management for the details in writing.

On a resale, buyers rely on the status certificate disclosure. If an assessment is disclosed, you can ask your lawyer about negotiating price, requesting the seller to pay a portion, or adding conditions for review. Affordability matters too. Build assessments into your budget planning and mortgage stress test to avoid strain later.

For current owners in Unionville

If you already own a condo:

• Stay informed. Read board notices, AGM packages, and engineering updates.
• Encourage regular reserve fund studies. These should be professionally prepared and updated on a set cycle.
• Ask for scope clarity before projects go to tender. Clear scope reduces change orders and cost surprises.
• Plan your personal budget. If the building is entering a heavy renewal phase, set aside savings for potential levies.

Real-world scenarios to keep in mind

While every building is unique, these patterns are common in Greater Toronto Area condos of this era:

• Small unplanned repair. A localized plumbing riser fix might be covered by operations, insurance, or a modest reserve draw.
• Medium building-wide project. Balcony waterproofing often involves many units and may exceed reserves, leading to an assessment or higher monthly fees.
• Large envelope replacement. Full window or glazing replacement can reach high six or seven figures for a mid-rise. If reserves are short, the board may levy several thousand dollars per unit in installments.

Exact numbers vary by building size and scope. Always rely on the reserve fund study, engineering reports, and the bids for the specific property you are evaluating.

How we help you navigate assessments

You should feel confident about the building you are buying or selling. Our team focuses on Markham and Unionville condominiums and helps you read the status certificate, organize the document package, and ask the right questions before you commit. We also coordinate with your lawyer to make sure you understand the financial picture and options if an assessment is disclosed.

If you are planning to sell, clear disclosure and strong, trust-building marketing can keep buyers at the table even when a building is heading into a capital project. We can position your listing, set the right expectations, and help you navigate timing and negotiations with care.

Ready to talk through a specific building or status certificate? Reach out to Walker Parker Real Estate to get a clear plan for your next step.

FAQs

What is a condo special assessment in Ontario?

• It is an extra levy a condominium corporation charges owners when regular fees and the reserve fund are not enough to cover required work on common elements.

How can I tell if a Markham condo has an assessment?

• Review the status certificate and attachments. It must disclose any existing or proposed assessments, along with budgets and reserve fund details.

What projects most often trigger assessments in older Markham buildings?

• Windows and glazing, balcony waterproofing, parking garage repairs, building envelope work, mechanical plant replacement, and elevator modernization are common for 1980s–1990s buildings.

Can a buyer avoid paying a disclosed assessment on resale?

• If the status certificate discloses an assessment, you can negotiate price or terms with the seller. Your ability to change the deal depends on your contract conditions and legal advice.

Do condo boards offer payment plans for assessments?

• Payment structures vary. Boards may require a lump sum or offer installments. Ask management for the payment schedule and any plan options in writing.

What documents should I review to judge assessment risk?

• Prioritize the status certificate, reserve fund study, 2–3 years of financials, AGM and board minutes, engineering reports, tender results, and the insurance summary.