Maintenance Fees are fees that are paid on a monthly basis in order to cover general costs, and management costs in relation to keeping intact the common areas and the facilities of the condominium; basically, the general wear and tear of the condominium. These fees also ensure that the condominium juristic person is on call with regards to repairs and everyday maintenance.
The sinking fund is a once off fee paid in advance for additions to building or any major fixtures, fittings or repairs needed for the building. These fees are calculated per square meter of your condominium, hence the bigger your condominium is, the larger the payment. However before the sinking fund is used, it has to be upon the majority of votes of the tenants who reside in the building.
Ensure that you examine the contract to see how much the monthly maintenance fee and sinking fund is. This should be in all the contracts for new condominium units although some units in the secondary market may omit this in their documents. Do ask the seller to provide you with this or you may obtain it directly from the condominium’s management company or the condominium juristic person.
The Condominium Act stipulates that the maintenance fees must be in accordance to the ratio of space that you own. As such, it should be expressed as an amount per square meter. This amount is also registered under the Rules and By-laws of the condominium at the relevant Land Office. Any increase must be agreed with a three-fourths majority vote amongst all joint-owners of the building and the amended Rules and Regulations registered at the Land Office in order to take effect.
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