What Is Rab Fund Phuket Condo Guide (2026)

What Is a RAB Fund in a Phuket Condo? Explained for Foreign Buyers

This guide answers one of the most common questions from foreign buyers in Phuket’s property market: What Is a RAB Fund in a Phuket Condo? Explained for Foreign Buyers.

Direct Answer

It is the building’s reserve, usually called the sinking fund in Thai condominium practice: a pool of money contributed by owners and held by the juristic person to pay for major capital works. It is separate from the monthly common area maintenance charge, and it is one of the most reliable indicators of whether a building is worth buying into.

Sinking fund versus CAM

These two are routinely confused and they do different jobs.

	Common area maintenance (CAM)	Sinking fund
Paid	Monthly, per square metre	Usually a lump sum at first transfer, sometimes topped up
Pays for	Day-to-day running: cleaning, security, pool service, utilities, staff	Capital works: lifts, roof, facade, pumps, major plant
If underfunded	Service quality drops	Owners face a special assessment
Transfers on sale	Ongoing obligation passes to the buyer	Contributions already made stay with the building

That last row matters. Money you contribute to the sinking fund is not refunded when you sell; it belongs to the building. You are buying into whatever position the fund is already in, which is why its state is a purchase consideration rather than an administrative detail.

Why an underfunded reserve costs you money

A building whose lifts need replacing and whose reserve cannot cover it raises a special assessment: a one-off demand on every owner, sized by floor area. On a smaller unit that assessment can equal a year’s rental income or more, and it arrives whether or not your unit is currently earning.

It also affects resale. A building with a documented assessment history and deferred maintenance is visibly harder to sell, because informed buyers ask exactly this question and price it in.

What to ask for before buying

• The juristic person’s financial statements, ideally for the last three years. You are looking for the reserve balance, the trend, and whether it is growing or being consumed.
• Owner delinquency rates. A building where a meaningful share of owners are in arrears has a funding problem regardless of what the balance says today.
• Assessment history. Have there been special assessments? For what, and how were they sized?
• Planned major works. Lifts, facade, roof and pool plant have known lifespans. A building at fifteen years with an original lift and a thin reserve is a predictable problem.
• The age of the building against the size of the reserve. A new building with a small reserve is normal. A fifteen-year-old building with a small reserve is a warning.

How this should change what you pay

If a building has a healthy reserve, you are buying an asset whose future capital works are already funded. If it does not, you are buying a share of a liability that has not yet been invoiced, and the price should reflect that.

Your lawyer can obtain these documents as part of due diligence. It is a small piece of work and it is one of the few checks that reliably predicts a cost you would otherwise meet by surprise.

Frequently Asked Questions

What is the sinking fund? +

A reserve contributed by owners and held by the juristic person to pay for major capital works: lifts, roof, facade, pumps and plant. It is separate from the monthly common area maintenance charge, which pays for day-to-day running.

Is it refunded when I sell? +

No. Contributions belong to the building, not to you, and you are buying into whatever position the fund is already in. That is why its state is a purchase consideration rather than an administrative detail.

What happens if it is underfunded? +

Owners face a special assessment: a one-off demand sized by floor area, arriving whether or not your unit is earning. On a smaller unit that can equal a year's rental income or more, and it also makes the building harder to sell.

What should I ask for? +

The juristic person's financial statements for the last three years, the reserve balance against the building's age, the owner delinquency rate, any assessment history, and what major works are scheduled. Lifts, facades and pool plant have known lifespans.

How should this change what I pay? +

A healthy reserve means future capital works are already funded. A thin one means you are buying a share of a liability that has not yet been invoiced, and the price should reflect that.