🏛 What Is a Special Assessments Clause in Real Estate?

A Special Assessments Clause in a real estate contract determines who is responsible for paying current or upcoming special assessments—extra charges imposed by an HOA, condo association, or municipality for improvements, repairs, or community projects. This clause clarifies whether the buyer or seller must pay these fees at or before closing.

How a Special Assessments Clause Works

Special assessments are charges beyond regular dues or taxes. They arise when an HOA, condo association, or city needs funds for major repairs or improvements. The Special Assessments Clause specifies who pays:

  • Current special assessments — already approved or billed.
  • Pending assessments — proposed but not yet finalized.
  • Future assessments — typically excluded unless stated.

The clause prevents disputes at closing by defining responsibility before the sale is finalized.

Why a Special Assessments Clause Matters

Benefits for Buyers:

  • Prevents unexpected charges after closing.
  • Ensures transparency around HOA or municipal obligations.
  • Helps evaluate true cost of ownership.
  • Clarifies responsibility for large, one-time fees.

Benefits for Sellers:

  • Prevents disputes over assessment disclosures.
  • Limits liability to specific assessments disclosed.
  • Helps negotiate credits or cost-sharing with buyers.
  • Ensures compliance with state HOA disclosure laws.

Example of a Special Assessments Clause

A typical clause may state:

  • “Seller shall pay all special assessments approved prior to the effective date of this contract.”
  • “Buyer shall be responsible for any special assessments approved after the effective date of this contract.”
  • “Seller agrees to pay all current and pending assessments in full at closing.”
  • “Buyer agrees to assume ongoing or future assessments related to community improvements.”

These examples show how the clause allocates financial responsibility between buyer and seller.

Why It Matters for FSBO Sellers

FSBO sellers must fully disclose special assessments to avoid legal or financial issues. A clear clause ensures smooth negotiations and protects sellers from unexpected costs.

  • Helps prevent post-closing disputes over HOA or city charges.
  • Clarifies which party pays for pending or approved assessments.
  • Supports compliance with HOA/condo disclosure laws.
  • Improves buyer trust by being transparent about community obligations.

When listing with Flat Fee MLS through Brokerless, sellers receive guidance on disclosures—including HOA dues, assessments, and community fees.

Frequently Asked Questions

What counts as a special assessment?
Any extra charge beyond regular HOA dues or taxes—often for roof replacements, structural repairs, road work, landscaping, or major upgrades.

Do sellers always pay special assessments?
No. Responsibility depends on the contract terms and state laws. Many contracts require sellers to pay assessments approved before contract signing.

What if an assessment is approved after the buyer goes under contract?
The Special Assessments Clause determines whether the buyer or seller pays—this is why the clause is important.

Do buyers have to accept pending assessments?
No. Buyers can negotiate credits, repairs, or cost-sharing—or walk away if allowed by contingencies.