Contracts
A Minnesota condominium unit is under purchase agreement. Before closing, the HOA assessment is significantly increased for emergency repairs. Who typically bears this cost?
AAlways the seller since the assessment arose during their ownership
BAlways the buyer since they will own the unit going forward
CAs negotiated in the purchase agreement or determined by state law✓ Correct
DSplit equally between buyer and seller regardless of other terms
Explanation
The allocation of special assessments depends on the purchase agreement terms and, in some cases, state law. Minnesota condominium purchase agreements should address how special assessments will be handled. Generally, assessments levied before closing are the seller's responsibility and those levied after closing are the buyer's. However, the parties can negotiate different arrangements in their contract.
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