What Is a Condominium Sinking Fund?

A sinking fund is intended to support major common-property expenditure rather than routine monthly operations. Confirm the amount already held, how contributions are calculated, permitted uses, investment controls, recent withdrawals and planned projects. A new buyer may have an initial contribution, while an older building may need replenishment or a special levy. Inspect the accounts rather than assuming the marketing figure is adequate.

Prepare three figures: cash required to complete, normal annual running cost and a repair reserve. Separate seller estimates from invoices and professional calculations. Costs and tax treatment can change, so current figures should be confirmed before signing.

This is general guide information only; obtain current independent Thai legal, tax, financial or technical advice for the specific transaction.