Condo Special Assessment in Ontario: What It Is and What to Check Before You Pay

Why a special assessment can happen

Regular fees are based on a budget. Actual costs and the timing of repairs can differ from the assumptions behind it. A special assessment may address an operating shortfall, unexpected expense or additional funding needed for major work. For how regular fees are set and raised, see How Much Can Condo Fees Increase in Ontario?

Robert Mullin discusses budgets and special assessments in Condominium Law in Ontario: A Contemporary Guide, pages 151-153. His discussion helps explain why owners should read the budget and the assessment notice together.

An assessment alone does not establish poor management. The useful question is what changed: the work, its price, its timing or the amount previously collected. Ask the board to show how the funding need was calculated. CAO: Special Assessments.

Check the notice against these documents

Keep a copy of the notice and record when you received it. Ask for an explanation of any mismatch; a missing attachment alone does not establish that the assessment is invalid.

How your share is calculated

Section 84(1) generally allocates common expenses using the proportions in the declaration. Do not divide the total equally among units unless the declaration supports that calculation. Not using a particular amenity does not by itself remove your obligation to contribute.

Illustrative example: the corporation needs to collect $400,000 through a special assessment. If your applicable share is 1.25%, the calculation is $400,000 x 0.0125 = $5,000. This checks the arithmetic; it does not establish that the project or total assessment was properly approved.

If you own separately titled parking or storage units, ask how each unit was treated. If management used a different allocation, request the provision supporting it. CAO: Common Expenses.

A shared assessment is different from a chargeback directed at a particular unit. If your notice seeks reimbursement for something attributed to you, first clarify which kind of charge it is. See Condo Chargeback: What the Bill Really Means.

Does the board need an owner vote?

Separate the collection of money from the decision to undertake the work. CAO explains that boards can levy special assessments without owners' permission, while complying with applicable provisions in their governing documents. Mullin specifically identifies the need to check the corporation's operational by-law for notice requirements on page 153.

For the project, section 97 draws distinctions that matter:

• Repair or maintenance: work meeting section 97(1)'s conditions, including the standard of replacement materials, is not treated as an addition, alteration or improvement for that section. A high price alone does not turn a repair into an improvement requiring a vote.
• Changes permitted without notice: section 97(2) provides specific grounds, including certain legal-compliance needs, safety or security needs, imminent-damage prevention and qualifying low-cost changes. Ask which ground applies.
• Changes requiring notice: section 97(3) describes the notice, estimated cost, proposed funding and owners' opportunity to requisition a meeting within 30 days of receiving the notice. It also sets conditions for proceeding.
• Substantial changes requiring approval: where section 97(4) applies, approval requires owners of at least 66 2/3% of the corporation's units to vote in favour at a meeting called for that purpose. This is not simply two-thirds of those attending.

Section 97(6) defines substantial changes by total estimated cost against the statutory threshold, or by the board's election to treat a change as substantial. Read that definition together with the other routes and any applicable regulations. Do not assume every expensive project needs the same approval process. Read section 97.

The practical request is: "Please identify the approval route for this work and provide the relevant decision, notice or vote result."

Why not use the reserve fund?

The reserve fund is intended for major repair and replacement of common elements and corporate assets. It cannot simply cover ordinary operating bills because another account is short. The Act also expressly allows the cost of a reserve fund study to be charged to the reserve under section 94(7).

Even when work is eligible, the current balance may be needed for other projects. Ask how the assessment relates to the study and the board's funding plan, and how the remaining projects will be funded afterward.

There is no single balance that proves every building's reserve is adequate. Avoid applying a universal percentage: section 93(5) contains a specific initial-contribution rule before the first study and implementation of the plan. Our Reserve Fund Study Explained covers that distinction and how to compare the documents.

If you want that comparison made for you, Fee & Reserve Check compares the reserve contribution in your budget with the amount your Reserve Fund Study sets out, using your own documents. It is document analysis by software, and it cannot predict a special assessment.

What if you disagree or cannot pay on time?

Raise the issue promptly in writing. Identify the disputed calculation, missing explanation or approval concern, and request a response before the due date. A records request does not itself extend that date.

Section 84(3) says that making a claim against the corporation does not exempt an owner from common-expense contributions. Do not assume you may withhold payment simply because you disagree. If you believe the assessment is unauthorized, or a deadline is close, ask a licensed Ontario condominium lawyer about payment, preserving your objection and any available remedy. Writing "under protest" is not a guarantee of a refund.

If affordability is the problem, ask whether the corporation will agree to instalments. A request is not an agreement. Get written confirmation of the amounts, dates, interest, collection costs and how the arrangement affects default or lien steps. Do not assume that every written payment plan prevents a lien. See Special Assessment Payment Plans.

Under section 85, default in paying common expenses gives the corporation a lien for the unpaid amount, interest and reasonable collection costs. The corporation must provide written notice at least 10 days before registering a certificate of lien. The lien expires three months after the relevant default unless registered in time; this is not a three-month payment grace period. A lien can be enforced like a mortgage. Condominium Act, section 85. For the notice, the deadlines and what to check, see Condo Lien in Ontario: What a Notice of Lien Means.

Request records and choose the right route

Ask for the assessment calculation, relevant board minutes, supporting financial or project documents, and applicable notices. Some records or portions may be withheld or redacted under the records rules. A request for an explanation is also different from a request for an existing record.

For a formal records request, use the prescribed form. The corporation generally has 30 days to respond using its response form; delivery requirements depend on the records and applicable steps. Keep your request, proof of delivery and response. Wording examples and the steps after the response are in what records owners can ask for. CAO: Requesting Records.

The Condominium Authority Tribunal handles specified disputes, including records issues. It is not a general appeal body for special assessments. A records dispute and a challenge to the assessment itself may need different routes. Obtain advice on the appropriate forum, including whether mediation, arbitration or court proceedings apply. CAO: Tribunal Jurisdiction.

What happens to money left over?

A project costing less than expected does not automatically create an individual refund. Section 84(2) provides that a common surplus is applied against future common expenses or transferred to the reserve fund, rather than distributed to owners except on termination. Reserve money has its own restrictions under section 95.

Ask for the final accounting and the board's explanation of how any surplus will be handled. This is different from a claim that an amount was unlawfully collected, which needs advice on its own facts. Mullin discusses surplus and collected assessments on pages 152-153.

Buying or selling while an assessment is pending

Give your transaction lawyer the notice, payment history and any instalment agreement. Section 76 requires a status certificate to include specified information about arrears, declared common-expense increases, reserve-related assessments and reserve funding, among other matters.

Ask your lawyer how the certificate and purchase agreement address an announced or unpaid assessment. Do not assume that the buyer or seller always pays, or that a missing disclosure automatically cancels the obligation. See Status Certificate Red Flags.

Sources and further reading

Book source: Robert Mullin, Condominium Law in Ontario: A Contemporary Guide (Irwin Law, an imprint of University of Toronto Press, 2026), Chapter 6, pages 150-154, particularly pages 152-153 on special assessments. View the book and read about Robert Mullin.

This is an independently written COA article informed by the book and official Ontario sources. Robert Mullin is the author of the cited book, not the author of this article. The example and checklist are COA editorial material.

Legal references: Condominium Act, 1998, especially sections 55, 76, 84-85, 93-95 and 97; Ontario Regulation 48/01, including the records provisions. CAO explanations are linked beside the relevant sections above.

Help understanding your notice

Condo Owner Advocate helps owners understand documents, identify missing information and prepare focused questions. Start with the Free Notice Decoder or see the available services.

COA does not provide legal representation or an engineering opinion and does not promise to cancel or reduce an assessment. For advice on liability, a dispute or an approaching lien deadline, consult a licensed Ontario lawyer.