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A sinking fund is a one-off payment a condo buyer makes into the building's reserve, set aside for major repairs and for replacing shared equipment such as lifts or the roof. No official guidance sets out its legal basis in Thailand, so the terms live in the sale contract and in the condominium's own rules rather than in a fixed rate. The regular charge for day-to-day upkeep, usually called the CAM fee, is a different thing: it pays for cleaning, security and running costs, while the sinking fund builds up for the occasional big repair. In practice buyers pay the sinking fund once, on purchase from the developer, and the amount is written into the sale and purchase agreement.
Where the sinking fund comes up
Look for the sinking fund line in the sale and purchase agreement and in the financial reports of the juristic person — the body that runs the building. Ask the developer whether the sinking fund appears in the handover payment statement and when it is due. Buying off-plan, check the unit price, the sinking fund and any advance common fees as separate lines, with their own due dates.
If you are wiring the payment from abroad, ask the developer for an invoice that shows the sinking fund apart from the purchase price, and keep the transfer record. Thai banks and the Land Office ask foreign buyers where their purchase money came from, and a clear paper trail helps if you resell or move money again later.
Sinking fund vs CAM fee
| Sinking fund | CAM fee | |
|---|---|---|
| When it's paid | Once, in practice on purchase from the developer | Regularly, under the juristic person's rules |
| What it covers | A reserve for major repairs and equipment replacement | Day-to-day upkeep of the common property |
| Who holds it | The condominium's juristic person | The condominium's juristic person |
What to check: fund balance and the juristic person's accounts
We recommend asking the juristic person for a report on the fund before you sign: how much it holds and what major work is planned. Our lawyers also check whether the unit carries common-fee arrears and how the contract splits payments between buyer and developer. This matters at resale too: the Land Office registers a transfer only once the juristic person certifies that no common fees are unpaid on the unit (Condominium Act, section 29).
The sinking fund is only one line in the cost of buying: see the full breakdown in taxes and fees when buying a condo and the wider checks in the condo buyer checklist for Phuket. If you're buying a freehold unit, our lawyers walk through the deal itself on buying a freehold condo in Phuket.
Phuket areas
The same laws apply across the island, but each area has its own particulars: what kind of property usually sells there, which documents prove rights to the land and what deserves a closer look before you buy.
Kata
In sea-view condominiums the 49% foreign quota usually runs out quickly, so we check it before you reserve a unit.
Patong
People buy condos here to rent out and open businesses that need licences.
Kamala
There are many branded residences here, homes sold under a hotel brand, and the management agreement needs careful reading before you buy.
Old Town
Many historic shophouses, buildings with a shop on the ground floor, are protected and can only be restored under special rules.
