If you’re selling your home, unexpected fees like a special assessment can come up at the closing table. A special assessment is an extra charge levied by a homeowners association (HOA) or local government for specific projects, such as repairing a roof, resurfacing roads, or upgrading community amenities. Typically, the seller pays any assessments that are due or approved before closing, while the buyer covers those approved afterward — though this can sometimes be negotiated in the purchase agreement.
Whether you’re selling a home in Chicago, IL, San Diego, CA, or Orlando, FL, this Redfin guide explains who typically pays the special assessments at closing, the factors influencing this decision, and how sellers can prepare to their advantage and avoid any surprises.
What is a special assessment and why do they happen?
A special assessment is a fee imposed by a homeowners association (HOA), condo board, or even a municipality to cover large expenses that regular dues or taxes don’t fully cover.
Common reasons include:
- Major repairs like a roof replacement or structural work.
- Infrastructure costs such as repaving roads or sewer upgrades.
- Community improvements like new amenities, landscaping, or safety upgrades.
As communities age, special assessments are becoming more frequent due to increased expenses for maintenance, insurance, and materials. Property owners should factor these potential fees into their long-term financial planning.
Who is typically responsible for paying the special assessment?
Whether the seller or buyer is responsible for paying a special assessment depends on timing and what’s written in the purchase contract.
- Before closing: If the assessment is approved and billed before the sale closes, the seller usually pays.
- After closing: If the assessment is imposed after the buyer takes ownership, the buyer generally assumes responsibility.
- Installments vs. lump sums: Assessments can be one-time or spread over time….