Sinking Fund And Maintenance Fee Condo

[moo9]

We bought a condo under a mortgage (still have to pay monthly payments for another 3 yrs or so). It is now completed, but presumably we will not get the ownership before having done the full payment. Now the condo wants to charge us yearly maintenance fee (we will move in soon) and one time sinking fund. In the contract however it is written that both payment are due at the date of transfer only.

I would understand to pay the yearly maintenance fee, but the sinking fund? What would happen, if one day we would not be in a position to pay the mortgage? Then the sinking fund money would be gone in favor of other owners.

How is this handled in your condominium? I would appreciate any tips or comments.

Rgds

Moo9

[pkrv]

We bought a condo under a mortgage (still have to pay monthly payments for another 3 yrs or so). It is now completed, but presumably we will not get the ownership before having done the full payment. Now the condo wants to charge us yearly maintenance fee (we will move in soon) and one time sinking fund. In the contract however it is written that both payment are due at the date of transfer only.

I would understand to pay the yearly maintenance fee, but the sinking fund? What would happen, if one day we would not be in a position to pay the mortgage? Then the sinking fund money would be gone in favor of other owners.

How is this handled in your condominium? I would appreciate any tips or comments.

Rgds

Moo9

You have sort of hit the nail on the head - The sinking fund is to protect everyone, regardless, and does need to be enforced.

[moo9]

We bought a condo under a mortgage (still have to pay monthly payments for another 3 yrs or so). It is now completed, but presumably we will not get the ownership before having done the full payment. Now the condo wants to charge us yearly maintenance fee (we will move in soon) and one time sinking fund. In the contract however it is written that both payment are due at the date of transfer only.

I would understand to pay the yearly maintenance fee, but the sinking fund? What would happen, if one day we would not be in a position to pay the mortgage? Then the sinking fund money would be gone in favor of other owners.

How is this handled in your condominium? I would appreciate any tips or comments.

Rgds

Moo9

You have sort of hit the nail on the head - The sinking fund is to protect everyone, regardless, and does need to be enforced.

I am sorry, but I do not understand your comment. Sure I support a sinking fund, the question is, whether it should be paid before the transfer of ownership (we pay the mortgage and stay in the condo).

Cheers

Moo9

[PennyFarthing123]

I believe the transfer has been made, the bank is just holding the chanote as a lien until the mortgage has been paid. This sinking fund is to be paid everytime the condo is sold. If you default it is not the responsibility of the other condo holders to absorb your payment.

[harrry]

I thought that the sinking fund would become part of the price of the condo on resale. I would have thought it would only be paid to the comittee on the first sale. Could someone advise me what is the real situation.

[pkrv]

We bought a condo under a mortgage (still have to pay monthly payments for another 3 yrs or so). It is now completed, but presumably we will not get the ownership before having done the full payment. Now the condo wants to charge us yearly maintenance fee (we will move in soon) and one time sinking fund. In the contract however it is written that both payment are due at the date of transfer only.

I would understand to pay the yearly maintenance fee, but the sinking fund? What would happen, if one day we would not be in a position to pay the mortgage? Then the sinking fund money would be gone in favor of other owners.

How is this handled in your condominium? I would appreciate any tips or comments.

Rgds

Moo9

You have sort of hit the nail on the head - The sinking fund is to protect everyone, regardless, and does need to be enforced.

I am sorry, but I do not understand your comment. Sure I support a sinking fund, the question is, whether it should be paid before the transfer of ownership (we pay the mortgage and stay in the condo).

Cheers

Moo9

Sorry - It is paid on transfer along with taxes. In some cases so are up front managment fees (for high end projects this can be up to three years in advance)

[thaihome]

Is the OP confusing the transfer of ownership at project completion (which I assume goes to the holder of the mortgage and appears to be happening now), where the OP has to pay any fees (maintenance or sinking) and transfer from mortgage holder to him at mortgage payoff (which he says is in 3 years)?

TH

[pkrv]

Is the OP confusing the transfer of ownership at project completion (which I assume goes to the holder of the mortgage and appears to be happening now), where the OP has to pay any fees (maintenance or sinking) and transfer from mortgage holder to him at mortgage payoff (which he says is in 3 years)?

TH

posts can be tricky - I interpreted this as the OP viewed the sinking fund as 'his' money rather than money under the control of the juristic people who are elected by people like himself and enforce majority decisions via the AGM (which is enforced by Thai law). Basically if this were not the case a building could end up falling down due to a few defaulters. It is in everyone’s interest to have the sinking fund. Payment is on transfer - for obvious reasons.