I have been told that a Condominium in Thailand must have 3 Funds by Law. Annual common fund, Sinking Fund & a Reserve fund along with Buildings Insurance. Can any one confirm that 3 funds have to be by law?  Because in our Articles of Association it States only Annual Common Fund & Sinking Fund. Any advice would be appreciated.

 

Thank you,        

 There is no legal requirement along the lines that you have stated

 

In general the Condominium Act is sadly lacking in detail pertaining to the management of co -owner funds

I am only aware of the 2 funds, common and sinking. 

Most of the Thai lawyer websites have lots of information about buying, condo act and fees etc.

We have three funds and I suspect that most other buildings have the same:

1. Current account

2. Sinking fund

3 Electricity meter deposit (about 500B per meter, which adds up in a large building). Whilst this last one is ours it cant actually be touched.

 

|Our sinking fund doesnt actually have any ceiling or floor apart from that originally set by the developer. Our current account obviously goes up and down throughout the year, but it does show a surplus at year end. Accounting in my building is not good enough to show where the surplus really comes from though.