Buying or Selling a Home/special assessments

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Expert: - 9/21/2007


Question
Is there any way to fight a special assessment ,
2yrs ago I bought a condo in mississauga ontario, the maintance has be rising every 6months sense.The building has foundation problems that have been overlooked for a number of yrs.Now the cost of repairing this problem is 7.4 million
The building has been sold to new owners and a special assessment is now in effect ,where they want $13,000 from every owner before march or they threaten to do power of sale on each unit.Some people in this building are on disability and can no way afford this.I know no one want to buy a condo thats collapsing so what is the answer??

Answer
Hey, James.

I don't know about Canada, but here in the United States, and specifically California, homeowners' associations are very powerful and special assessments are very difficult to fight. It would have to be done on "principle" since the cost of fighting it would probably go well beyond the amount of the special assessment.

The only thing to do is to try to change the votes of the HOA Board, appeal to their sense of decency regarding those who can't afford it, try to come up with a different plan, etc. But that type of activity also comes with a cost.

Probably the best thing to do is to read your covenants, deeds, and restrictions, and then contact a good real estate attorney with experience dealing with homeowners' associations and/or special assessments.

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Russel Ray

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Through home inspections, I provide an education about real estate. I'm one of those rare home inspectors who has been involved in real estate in many different capacities: as a Realtor (in Texas), as a property investor/flipper, as a teacher, and as a marketing expert (for Realtors and home inspectors). I believe that my experience as a Realtor and property investor provides me with a different viewpoint about home inspections in that I work for my Clients, but when there are other people involved in helping my Clients, then I firmly believe in helping them, too. That includes Realtors (both the seller's and the buyer's), repair professionals (e.g., plumbers, electricians, etc.). If I can get all the players (seller, seller's Realtor, buyer, buyer's Realtor, and repair professionals) playing in the same sandbox together to accomplish goals as a TEAM (Together Everyone Accomplishes More), then I believe I have succeeded in my job as a home inspector. My profession is, in my opinion, much more than simply documenting the condition of a property and then take the money and run. I am also a rare breed in that I don't believe that one inspection fits the needs of all Clients, and I have led the industry in understanding that fact. For example, the goals of a property investor are far different than the goals of someone buying a property to live in. The goals of a seller (a pre-listing inspection) are far different than the goals of a buyer (a pre-purchase inspection). To that end, I offer 14 different types of inspections, e.g., STANDARD, LIST, RENTER, BASIC, MAINTENANCE, SPOT, and more. I believe in giving the benefit of the doubt to all professionals in whatever industry they represent until they prove me wrong.

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Over 42 years in all aspects of real estate--building homes, renovating homes, inspecting homes, Realtor.

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National Association of Certified Home Inspector, Better Business Bureau of San Diego

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Graduate of Texas A&M University; College Station, Texas

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