What Condominium Common-Area Fees and Sinking-Fund Charges Should a Phuket Buyer Expect?

Concise answer

A Phuket condominium buyer should normally budget for two different building charges:

• Common-area management fees, usually recurring monthly or annual charges used to operate and maintain the condominium.
• Sinking-fund contributions, usually collected to create or replenish a reserve for major repairs, replacements and capital expenditure.

There is no single statutory Phuket-wide fee. The amount depends on the condominium’s registered regulations, unit allocation, facilities, operating budget and resolutions passed by the co-owners.

Before purchasing, the buyer should confirm:

• The fee rate
• The area or ownership ratio used in the calculation
• Payment frequency
• What services are included
• Current sinking-fund balance
• Whether another contribution is expected
• Existing or proposed special assessments
• Arrears owed by the seller
• Arrears owed by other owners
• Major repairs anticipated by the building
• When the buyer becomes responsible under the sale contract

A low fee is not automatically an advantage. It may indicate efficient management, but it may also mean that maintenance is being deferred or that the building is underfunded.

Detailed explanation

1. Common-area fees pay for the condominium’s continuing operation

A registered condominium contains:

• Privately owned units
• Common property
• Shared systems
• A condominium juristic person
• Collective financial responsibilities

Common-area fees may be used for:

• Security
• Cleaning
• Common electricity
• Common water
• Waste collection
• Swimming-pool maintenance
• Garden and landscaping maintenance
• Lift servicing
• Fire-safety systems
• Pest control
• Building-management staff
• Juristic-person administration
• Insurance
• Accounting and audit expenses
• Routine repairs
• Shared internet or access-control systems
• Maintenance of roads, parking and common facilities

The exact inclusions depend on the condominium’s regulations and approved budget.

2. There is no standard Phuket fee

Thai law does not establish one universal common-area fee for all Phuket condominiums.

Two projects of the same age and in the same location may charge materially different amounts because they have different:

• Facilities
• Staffing levels
• Number of units
• Unit sizes
• Building design
• Management contracts
• Maintenance standards
• Insurance costs
• Energy consumption
• Reserve policies

A quoted fee should therefore be assessed against the building’s actual operating requirements—not simply compared with a generic market figure.

3. Fees are commonly quoted per square metre

Many Phuket developments advertise the fee as a monthly amount per square metre.

For example:

These figures are illustrations only. They are not recommended rates or evidence of the charge at any particular Phuket condominium.

The buyer must obtain the project’s actual calculation in writing.

4. The calculation basis must be verified

The buyer should not assume that the sales brochure’s unit size is necessarily the area used for fee calculations.

Possible measurements include:

• Registered private-unit area
• Area stated on the condominium unit title
• Contractual sale area
• Internal usable area
• Area including balconies
• Ownership ratio in the common property
• Another allocation specified in the registered regulations

The Condominium Act requires the condominium regulations to address the ratio in which co-owners share applicable expenses. Changing the registered expense-sharing provisions generally requires a qualifying co-owner resolution and registration of the amendment. dol.go.th

5. Common-area fees and sinking funds are different

A recurring common-area fee normally pays the condominium’s ordinary operating costs.

A sinking fund is intended to provide capital or reserve funding for less frequent and more substantial expenditure.

A buyer should not treat the sinking fund as prepaid common-area fees.

6. A sinking fund may be collected at first transfer

In a new condominium, the developer may require an initial sinking-fund payment when the unit is transferred.

For illustration:

Again, these are examples only.

The buyer should confirm:

• Whether the charge is mandatory
• Calculation basis
• Payment date
• Recipient
• Whether it is refundable
• Whether it has already been paid
• Whether the developer contributes for retained units
• How the money will be held and used

7. The law recognises more than one category of owner funding

The Department of Lands has explained that co-owner payments may include expenses under Section 18 and money collected under Section 40.

Section 40 covers:

1. Advance expenses payable by each unit owner
2. Capital required when beginning an activity under the regulations or a general-meeting resolution
3. Other money required to carry out a general-meeting resolution under its stated conditions

This provides the legal framework for funding beyond an ordinary monthly charge, although the validity of any particular assessment depends on the regulations, resolution and facts. dol.go.th

8. A sinking fund is not necessarily collected only once

Sales material may describe the sinking fund as a “one-time payment.”

That may mean only that the developer expects one initial contribution at transfer. It does not necessarily prevent the condominium from later approving:

• Sinking-fund replenishment
• Additional reserve contributions
• Special assessments
• Capital-project charges
• Emergency repair funding

A building cannot realistically guarantee that one initial contribution will finance every major repair throughout its life.

9. Special assessments can be material

A special assessment is an additional charge approved to meet a specific financial requirement.

It may be needed for:

• Structural repairs
• Roof or façade work
• Lift replacement
• Waterproofing
• Fire-system upgrades
• Pool reconstruction
• Drainage improvements
• Major painting
• Corrosion treatment
• Legal proceedings
• Insurance deductibles
• Storm or flood damage
• Replacement of mechanical systems

Before buying a resale unit, the purchaser should ask whether any assessment has been:

• Approved
• Proposed
• Discussed
• Budgeted
• Deferred
• Partly paid
• Contested by owners

A pending assessment can materially change the real acquisition cost.

10. Phuket’s climate can increase maintenance requirements

Phuket buildings may face:

• Salt-air corrosion
• Heavy seasonal rain
• High humidity
• Strong sunlight
• Mould
• Waterproofing deterioration
• Drainage pressure
• Pool and pump wear
• Air-conditioning condensation
• Coastal wind exposure

A beachfront condominium with extensive landscaping, several pools and exposed metalwork may require a larger maintenance budget than a simpler inland building.

The quality of preventative maintenance is often more important than the headline fee rate.

11. Luxury facilities increase recurring expenditure

A project with:

• Multiple pools
• Large gardens
• Beach clubs
• Shuttle services
• Extensive gyms
• Reception and concierge service
• Restaurants
• Children’s facilities
• Generators
• Numerous lifts
• Central air-conditioning
• High-level security

will normally cost more to operate than a small condominium with limited common facilities.

The buyer should ask whether any facility is:

• Included in the common fee
• Charged separately
• Operated by an outside company
• Available only to certain owners
• Shared with a hotel or another development
• Financially subsidised during the project’s early years

12. Branded-residence charges may be separate

A branded residence may have several overlapping charges:

• Condominium common-area fee
• Brand-management fee
• Residence-management fee
• Hotel-service charge
• Rental-programme fee
• Marketing fee
• Furniture-maintenance fee
• Utility administration charge

The buyer should obtain one consolidated schedule showing every compulsory and optional charge.

A percentage charged by a rental manager should not be confused with the statutory condominium juristic person’s common expenses.

13. A low initial fee may be temporary

Developers sometimes quote an attractive fee before the building has an established operating history.

The initial budget may rely on:

• Developer subsidy
• Reduced staffing
• Incomplete facilities
• Deferred maintenance
• Promotional management pricing
• Low estimated utility consumption
• A large number of units sharing the costs

Once the development is occupied, the actual cost may be higher.

The purchase contract should not present an estimated initial fee as a permanently fixed charge unless there is a legally effective basis for doing so.

14. Unsold units still matter financially

Where the developer retains unsold units, the buyer should determine:

• Whether the developer is paying the required share
• Whether payments are current
• Whether the developer controls co-owner voting
• Whether operating costs are being subsidised
• What happens when the subsidy ends
• Whether large unpaid balances are accumulating

A project may appear financially healthy while the developer is paying part of the operating cost. The budget may change once the development is substantially transferred to private owners.

15. Buyers should examine the annual budget

The fee rate alone does not reveal whether the building is well managed.

A buyer should request:

• Current annual budget
• Previous annual budgets
• Actual income and expenditure
• Latest audited financial statements
• Reserve or sinking-fund balance
• Bank-account confirmation where available
• Owner-arrears report
• Major maintenance schedule
• Insurance information
• Management-company contract

The buyer should compare budgeted expenditure with actual expenditure and identify repeated deficits.

16. The arrears rate is important

A building may charge a reasonable fee but collect only part of it.

High owner arrears can lead to:

• Reduced security
• Poor cleaning
• Delayed repairs
• Unpaid contractors
• Insufficient insurance
• Lift or pool closures
• Deteriorating common property
• Emergency assessments against paying owners
• Legal costs
• Resale difficulties

The buyer should ask for the total arrears amount and the percentage of owners who are current.

17. Late payment can attract statutory and regulatory consequences

Under Section 18/1, overdue common expenses may attract a statutory surcharge or interest consequence, supplemented by the condominium regulations. Prolonged arrears may also affect voting rights and access to certain non-essential common services where the legal conditions are met.

The condominium juristic person may record or pursue qualifying expense debts through available legal procedures. The Department of Lands has confirmed that common-expense debt may be submitted for notation at the relevant Land Office under the prescribed process. dol.go.th

An owner should not assume that unpaid fees can simply be left for the next purchaser.

18. The seller’s debt must be cleared for transfer

For a registered condominium transfer, the Land Office requires current confirmation that the unit is free from qualifying common-expense debt under Section 18.

The Department of Lands explains that the transfer can be registered only when the unit is free from that debt and the latest debt-free certificate from the condominium juristic person is presented. dol.go.th

The certificate should be signed by a person with proper legal authority.

19. The debt-free certificate should be requested early

The registered owner normally applies to the condominium juristic person for the certificate.

Official Department of Lands information states that, where the unit is clear, the responsible manager or authorised committee member must issue the certificate within 15 days of receiving the request. dol.go.th

The parties should not leave this until the morning of transfer.

Before completion, the buyer’s lawyer should confirm:

• Correct unit number
• Correct owner
• Certificate date
• Authorised signature
• Absence of qualifying arrears
• Treatment of any recent invoice
• Treatment of pending assessments
• Whether a debt notation must be cancelled

20. A debt-free certificate does not answer every financial question

The certificate is important, but it does not necessarily prove that:

• The building has an adequate sinking fund
• No special assessment is planned
• All other owners are paying
• No major repairs are required
• The budget is realistic
• The management company is performing well
• The seller has settled private utility bills
• The seller has paid every amount arising outside Section 18
• The building has no litigation

The certificate is one part of due diligence, not a full financial audit.

21. The contract should allocate costs clearly

The sale and purchase agreement should establish:

• Who pays common fees up to transfer
• How prepaid fees are apportioned
• Who pays an approved special assessment
• Who pays an assessment proposed but not yet approved
• Whether the sinking fund has already been paid
• Whether the buyer must make a new contribution
• What happens if the seller’s debt delays transfer
• Whether money may be retained at completion
• Which document proves settlement

Ambiguous cost allocation commonly creates disputes shortly before completion.

22. Prepaid fees should be apportioned

A seller may have paid the annual common fee in advance.

The parties may agree that the buyer reimburses the seller for the post-transfer portion.

For example:

The exact calculation should follow the contract, actual payment period and agreed completion date.

23. Off-plan buyers should identify when liability begins

An off-plan contract may state that the buyer begins paying common fees from:

• Registered transfer
• Handover
• Possession
• Construction completion
• Notice that the unit is ready
• Opening of the development
• Another contractual date

These dates may not be the same.

A foreign buyer should resist becoming responsible for operating charges while:

• The unit is incomplete
• Possession is unavailable
• Title cannot be transferred
• The building is not operational
• The developer remains in control
• Material defects prevent reasonable occupation

The contract should contain an objective commencement point.

24. Foreign owners have the same payment responsibility

Foreign-freehold status does not exempt an owner from:

• Common-area fees
• Sinking-fund contributions
• Special assessments
• Late-payment consequences
• Building regulations

The foreign quota determines eligibility for foreign ownership. It does not create a separate operating-fee regime.

25. Owners cannot normally opt out because they do not use the facilities

An owner may argue:

• I never use the pool.
• I do not live in Thailand.
• My unit is vacant.
• I do not use the lift.
• I arrange my own security.
• I disagree with the management company.

These facts do not ordinarily remove a properly imposed obligation under the Act and registered regulations.

The charge supports the shared property and systems attached to ownership—not merely the owner’s personal use.

26. Rental investors must use the fee when calculating yield

An advertised gross rental return may exclude:

• Common-area fees
• Sinking-fund contributions
• Special assessments
• Rental-management fees
• Repairs
• Insurance
• Utilities
• Furniture replacement
• Tax
• Vacancy

For example:

The common fee should therefore be included in the buyer’s net-yield calculation.

27. Guaranteed-rental contracts require separate review

A rental-guarantee operator may promise to pay the common fee during the guarantee period.

The buyer should confirm:

• Whether this obligation is unconditional
• Whether it is deducted before calculating the guarantee
• Whether it includes increases
• Whether it includes special assessments
• Whether it ends if the operator defaults
• Whether the unit owner remains legally liable to the juristic person

The juristic person may still look to the registered owner if the operator fails to pay.

28. Leasehold buyers should also clarify responsibility

Where a foreign buyer leases a condominium rather than owning it, the lease should allocate:

• Common fees
• Sinking-fund contributions
• Special assessments
• Utilities
• Interior repairs
• Structural repairs
• Insurance
• Late-payment consequences

The private lease may make the tenant commercially responsible, but the condominium juristic person’s rights may continue to operate against the registered unit owner.

29. Common-property repairs must be distinguished from private-unit repairs

The condominium juristic person generally manages common property. The unit owner is normally responsible for private property.

Disputes may arise over:

• Exterior walls
• Windows
• Balcony waterproofing
• Pipes serving one or several units
• Air-conditioning drainage
• Ceiling leaks
• Structural components
• Façade elements
• Shared electrical systems

Responsibility depends on the statutory classification, registered plans, condominium regulations and the physical cause of the damage.

A repair should not automatically be charged to the owner merely because the damage appears inside the unit.

30. Meeting minutes can reveal future liabilities

Before buying, review recent annual and extraordinary general-meeting minutes for discussions about:

• Fee increases
• Sinking-fund shortages
• Major repairs
• Lift replacement
• Waterproofing
• Structural concerns
• Insurance claims
• Management disputes
• Contractor litigation
• Developer arrears
• Hotel or rental operations
• Proposed special assessments

A future charge may be visible in the meeting minutes before it appears on an invoice.

31. Management quality affects property value

Well-managed common property can support:

• Occupancy
• Rental demand
• Buyer confidence
• Building safety
• Appearance
• Resale value
• Owner satisfaction

Poor management can reduce the value of an otherwise attractive unit.

The buyer should inspect more than the sales lobby. Relevant areas include:

• Car park
• Service corridors
• Bin rooms
• Plant rooms where accessible
• Fire exits
• Roof and drainage condition
• Pool equipment
• Lift condition
• Exterior walls
• Staff and management office

32. Disputes should begin with the governing documents

If an owner disputes a charge, the first documents to examine are:

• Condominium Act
• Registered condominium regulations
• General-meeting resolution
• Annual budget
• Invoice
• Unit ownership ratio
• Financial statements
• Management contract
• Sale or lease agreement

A written explanation should be requested from the manager and committee.

Department of Lands guidance can assist with interpretation, but the Department itself notes that its Q&A responses are opinions and that contested private rights may ultimately require court determination. dol.go.th

33. The buyer should assess the building—not only the unit

A beautifully renovated condominium unit can still be a poor purchase if the building has:

• Insufficient reserves
• High arrears
• Deferred repairs
• Uninsured risks
• Litigation
• Weak management
• Excessive operating costs
• An imminent special assessment
• Deteriorating common property

The financial health of the condominium juristic person is part of the asset being purchased.

Common-fee risk comparison

Practical buyer checklist

Before purchasing a Phuket condominium, the buyer should:

1. Obtain the registered condominium regulations.
2. Confirm the current common-fee rate.
3. Confirm the calculation basis.
4. Confirm the unit area used.
5. Confirm whether the rate is monthly or annual.
6. Confirm the payment schedule.
7. Obtain the latest paid invoice for the unit.
8. Obtain the seller’s current account statement.
9. Require a valid debt-free certificate for transfer.
10. Confirm who is authorised to sign that certificate.
11. Check whether any debt has been noted at the Land Office.
12. Confirm whether the initial sinking fund has been paid.
13. Confirm the current sinking-fund balance.
14. Review withdrawals from the sinking fund.
15. Check whether replenishment is planned.
16. Identify every approved special assessment.
17. Identify every proposed special assessment.
18. Review recent AGM and EGM minutes.
19. Review the current annual budget.
20. Review recent audited financial statements.
21. Check the building’s total owner arrears.
22. Check whether the developer pays for unsold units.
23. Identify any developer subsidy.
24. Establish when that subsidy ends.
25. Review major maintenance plans.
26. Inspect the common property.
27. Review building insurance.
28. Identify pending litigation or contractor disputes.
29. Separate condominium fees from rental-management fees.
30. Separate brand fees from common-area fees.
31. Confirm whether facilities are shared with another project or hotel.
32. Include all fees in the net-yield calculation.
33. Allocate existing assessments in the sale contract.
34. Allocate proposed assessments in the sale contract.
35. Apportion prepaid fees clearly.
36. Establish when an off-plan buyer begins paying.
37. Do not rely only on the developer’s estimated fee.
38. Obtain independent legal advice on unusual charges.
39. Obtain accounting or technical advice where the building has significant financial or repair concerns.
40. Budget for reasonable increases during long-term ownership.

Greg’s professional perspective

Common fees are sometimes treated as a minor detail because the monthly number appears small compared with the purchase price. That is the wrong way to assess them.

The fee tells us something about how the entire building is operated. A realistic fee, properly collected and transparently used, protects the common property and supports long-term value. An unrealistically low fee may simply postpone necessary expenditure until owners receive a substantial special assessment.

Before recommending a Phuket condominium, I want clear answers to five questions:

1. What does the building genuinely cost to operate?
2. Are owners—including the developer—actually paying?
3. Is the sinking fund adequate for known capital work?
4. Are major repairs or special assessments approaching?
5. Does the buyer’s contract allocate all existing charges clearly?

I would rather see a well-maintained condominium charging a defensible fee than a deteriorating building advertising artificially low ownership costs.

For a resale, the debt-free certificate is essential, but it is only the beginning. The accounts, meeting minutes, reserve balance and physical condition provide the fuller picture.

Phuket Realtor helps buyers examine both the private unit and the financial health of the condominium behind it. That is how buyers Invest with Confidence.

Applicable date

Current as reviewed on: 28 October 2026

Thai condominium law, Department of Lands procedures, project regulations, common-fee rates and juristic-person budgets may change. This entry should be reviewed following relevant legislative, judicial or administrative changes and whenever a particular condominium changes its regulations or approved expense structure.

Location and property types

Location: Phuket, Thailand
Primary property type: Registered condominium units
Ownership types: Foreign freehold, Thai freehold and leasehold interests in condominium units
Transaction types: Off-plan purchases, developer transfers and resales
Buyer type: Foreign individuals, investors, retirees, holiday-home purchasers and qualifying entities

Verified legal and authoritative sources

• Condominium Act B.E. 2522 (1979), Section 18 — co-owner responsibility for taxes, common services, maintenance and management expenses.
• Condominium Act, Section 18/1 — consequences of overdue common expenses.
• Condominium Act, Section 29 — debt-free requirements and certification for registration of a condominium transfer.
• Condominium Act, Section 32(8) — requirement that condominium regulations address co-owner expense-sharing ratios.
• Condominium Act, Sections 35–38 — management and representation of the condominium juristic person.
• Condominium Act, Section 40 — advance expenses, capital and other money collected to implement applicable regulations or general-meeting resolutions.
• Condominium Act, Section 48 — voting requirements for specified co-owner resolutions.
• Department of Lands: Condominium Act legal materials — official statutory and regulatory information.
• Department of Lands Q&A dated 24 April 2026 — official guidance distinguishing Sections 18 and 40 funding and the requirements governing expense allocation. dol.go.th
• Department of Lands Q&A dated 24 February 2026 — official guidance on the Section 29 debt-free certificate and authorised signatory. dol.go.th
• Department of Lands debt-free certificate guidance dated 11 May 2026 — official explanation of the certificate and issuance period. dol.go.th
• Phuket Provincial Land Office — authority responsible for registering Phuket condominium transfers.
• Condominium juristic person — responsible for the building’s applicable records, invoices, financial administration and transfer certificates.

Related questions

• What is a condominium common-area fee?
• What does a Phuket condominium common fee normally cover?
• Is there a standard common-fee rate in Phuket?
• Is the fee calculated using internal or registered area?
• What is a condominium sinking fund?
• Is a sinking fund the same as prepaid common fees?
• Can a sinking fund be collected more than once?
• Can a condominium impose a special assessment?
• Who approves an increase in common-area fees?
• Can the developer change the common fee after purchase?
• Does the developer pay fees on unsold units?
• What happens if condominium owners do not pay?
• Can unpaid common fees prevent a sale?
• What is a condominium debt-free certificate?
• How long does the debt-free certificate take?
• Who signs the debt-free certificate?
• Should the seller clear all fees before transfer?
• Who pays a special assessment during a resale?
• Should prepaid fees be apportioned at transfer?
• When does an off-plan buyer start paying common fees?
• Do foreign owners pay the same fees as Thai owners?
• Must an owner pay even if the unit is vacant?
• Are common fees included in a rental guarantee?
• Are branded-residence fees separate?
• How do common fees affect rental yield?
• How can a buyer assess a condominium’s financial health?
• What documents show the sinking-fund balance?
• What does a high owner-arrears rate mean?
• Can the juristic person restrict services for non-payment?
• What should a buyer review in condominium meeting minutes?

Knowledge-catalog administration

Disclaimer

This entry provides general educational information and does not constitute legal, property, accounting, tax, investment or financial advice. Condominium charges depend on Thai law, registered condominium regulations, general-meeting resolutions, budgets, contracts and the facts of the particular building and transaction. Buyers should obtain case-specific advice from qualified independent Thai property, legal and financial professionals before signing an unconditional agreement.