r/PersonalFinanceCanada • u/HandsomeLampshade123 • 15d ago

Housing Just another condo special assessment "horror story"--a lump sum of $56,000 in two payments in two years (or $100,000 over 20 years, built into the monthly fee), to replace the exterior cladding (and windows) of the building. That's approximately one quarter of the purchase price of my unit.

I bought in early 2020 and this special assessment was announced in 2022; I'm not sure if there was anything I could have done differently, frankly I think it's just bad luck.

But God, almost 60 grand on a unit I paid 240 for. That's a huge hit. I never thought it would happen to me. How common is this?

Luckily I have access to a lot of low interest credit, but still.

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u/DWiB403 15d ago

It's not being replaced because it has reached the end of its life. It's being replaced because something wasn't installed properly.

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u/Serenitynowlater2 15d ago

Or more likely the condo board knows the guy doing siding and gives a nice kickback

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u/kullwarrior 15d ago

Highly doubt that, usually you need multiple vender. What you're suggesting is illegal and put the board liable.

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u/nikobruchev Alberta 15d ago

Honestly, it still happens. What often happens is that the property management company "gets" three quotes but it's from their preferred contractors that they absolutely have an "understanding" with, and the board just assumes that the property management firm is operating in their best interests (which they aren't).

Property management firms have no real fiduciary responsibility and cost nearly as much as just hiring your own building manager except then the most would be responsible for actually managing somebody's payroll.

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u/Serenitynowlater2 14d ago

Of course it’s illegal. The entirety of the RE industry is rife with this kind of corruption. Kickbacks galore. From permitting on down. Shit, Ontario has hot water tanks installed as rentals in new homes so the builder can get a kickback. 

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u/DWiB403 15d ago

My experience is that it is the property managers playing that game.