It’s so awesome and you are just so excited to move into your first condo that you got an accepted offer on last night. You are reading through the minutes and all of a sudden you see that the strata has passed a special assessment to the tune of $20,000. Immediate panic and a sick feeling in your stomach. Where or where will you get $20,000?
Good news! Special assessments are based on unit entitlement, so the assessment is split between all the owners of the building, and the guy who has the bigger unit will pay a bigger portion of the assessment, and proportionality the guy with the smaller unit will pay a smaller assessment.
Here is how the math works:
Unit entitlement of the strata lot (divided by) Total unit entitlement of the entire building X the total amount of the special assessment.
So if we put the formula to work it would look something like this:
794 / 91,698 X $20,000 = $173.16
When broken down like this, it doesn’t look so scary. Plus, if your realtor was awake when they wrote the contract, they would have added the clause that makes the Seller liable to pay for the special assessment, on or before Completion.
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