A special assessment is an additional charge assessed by a Homeowners Association (HOA) to cover the cost of repairs or improvements to the common areas of the community.
Special assessments are important to HOAs in Florida for a variety of reasons. They:
- Provide a way to finance major repairs or improvements
- Spread the cost of these items over a longer period of time
- Allow owners to budget accordingly for these expenses
- Help to maintain or increase the property values in the community
When it comes to selling a property that is part of an HOA, there are a few things to keep in mind about special assessments.
Who pays for special assessments at closing in Florida?
In Florida, the party who pays the special assessment at closing is typically the seller. However, there are some exceptions to this rule.
For instance, if the assessment is for a new improvement that has not yet been completed, the buyer may be responsible for paying the assessment. Additionally, if the property is located in a special assessment district, the buyer may be required to pay the assessment as part of their annual property taxes.
The amount of the special assessment may be prorated between the buyer and seller based on the number of days each party owned the property during the assessment period.
Ultimately, it is important to discuss this issue with your real estate agent or attorney to determine who will be responsible for paying the special assessment. A real estate attorney can help to negotiate the terms of the special assessment with the seller and/or lender, and can also help to ensure that the buyer is aware of the assessment and its implications.
If you have questions about special assessments, don’t hesitate to reach out to our legal team at Dania Fernandez and Associates, P.A. We’re more than happy to assist you and ensure you have a timely, stress-free closing experience.
We offer legal assistance in all matters of condominium association law, homeowners and community association law, real estate litigations and transactions, residential and commercial closings, and insurance law.
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Good evening,
I listed my Townhouse in May, after the City approved my townhouse the 40 Yr Recert Certif in February 2023. I completed the interior = $25,000.00in May . I List the Townhouse at that time on tMLS .
Prior to 10/23 The SA was $84,000.00. as of 10/1 they increased the SA to $144,200.00, to obtain an additional $29,000.00 (= $42,000.00) to increase the mo. $700.00 per unit)to complete the other 26 buildings. over 207 months My unit was complete the $26,700.00 I PAID into the first SA they are adding to the assessment instead of subtracting
Our HOA president has just advised us of a special assessment for new elevators for all 10 of our buildings when 8 of the 10 are still working. The assessment is almost $900,000. We were not asked to vote on this but were just told the first payment of $2,800.00 is due in January
I closed on the sale of my condo on October 28, 2024. Prior to closing I was aware of a special assessment of $8,700 (my unit’s portion) to replace the roof. First installment due November 1, 2024; second due January 1st. At closing the buyer received a credit $6,500. The work will not start until the beginning of the year. Although I was aware of the SA, I believe I should not have given this credit to the buyer for work yet to be performed.
How does one determine ” new improvement that has not yet been completed”? We have a special assessment coming that include MANY items that have not yet started and therefore will not be completed upon closing. Who is responsible for these?