Who Pays for a Special Assessment at Closing?

"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."

"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."

Special assessments are extra charges levied by HOAs, condo boards, or municipalities to fund large projects or expenses beyond regular dues or taxes. Common causes include major repairs (roof, structural), infrastructure upgrades (repaving, sewer), and community improvements (amenities, landscaping, safety). Responsibility depends on timing and contract terms: sellers usually pay assessments approved and billed before closing, while buyers pay assessments imposed after ownership transfers, though parties can negotiate responsibility in the purchase agreement. Assessments may be one-time or installment-based and should be considered in long-term financial planning. Sellers should review HOA disclosures, request payoff statements, and negotiate terms to avoid surprises at closing.

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