Real estate Q&A: Seller may have to pay off special assessment
Q: I am in the process of selling my condo, and the board just passed a special assessment for the community. My real estate agent told me I need to pay off the whole amount at the closing, but I thought I would make the monthly payments until closing and then the buyer would continue the payments. Who is correct?
Q: I am in the process of selling my condo, and the board just passed a special assessment for the community. My real estate agent told me I need to pay off the whole amount at the closing, but I thought I would make the monthly payments until closing and then the buyer would continue the payments. Who is correct?
-- Carmen
A: A special assessment can be levied only for proper common expenses. Most assessments are too large for unit owners to pay in full immediately, so there usually is an option to make monthly payments.
The standard sales contract offers the option of either the seller paying the assessment in full before closing or the buyer picking up the payments thereafter. You'll need to check your contract to see which option you selected. You'll also need to check with your association because in some rare instances, the special assessment must be paid in full at closing and can't be transferred to the buyer.
In order to levy an assessment, your association has to jump through a bunch of hoops and have a properly noticed approval meeting. Your condo documents will determine whether the board or the membership will vote on the assessment at the meeting. In either case, the issue must be presented at the meeting.
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ABOUT THE WRITER
Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program. Send him questions online at http://sunsent.nl/mR20t7 or follow him on Twitter @GarySingerLaw.
The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.
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