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.