Asked and AnsweredAn “assessment” was imposed by the co-op Board after the contract was signed. Is payment of the assessment the seller’s responsibility?
It depends. First of all, due diligence should reveal, at least theoretically, whether there are any ongoing assessments or whether the imposition of an assessment is imminent. An ongoing assessment should be recited in the contract. Assessments that are payable before the closing date are payable by the seller. When an assessment is payable in installments, the buyer usually pays the installments that occur after the closing. When an assessment is imposed after the contract is signed that represents a significant financial obligation on the apartment owner, it could affect the bank financing and could also create a contractual issue depending upon what the contract says about assessments. Due inquiry at the beginning of the process can avoid the hassle of dealing with an assessment that the buyer did not anticipate.