Can the management team use the money in Sinking Fund to pay for Maintenance Charges? Is it their right to decide what to spend for?


Strata owner has a duty to contribute to the sinking fund, payable to the Management pursuant to the Strata Management Act 2013 (“the Act”). Section 11(4)(c), 24(2) and 51(2) of the Act provides that the sinking fund account shall be solely use for the purpose of the followings:-
  1. Painting or repainting any part of the common property which is a building or other structure;
  2. Acquisition of any movable property for use in relation to the common property;
  3. Renewal or replacement of any fixture or fitting comprised in any common property; and
  4. Upgrading and refurbishment of the common property.
The above provision applies to the developer, joint management body and management corporation. Therefore, it is clear that the Management is prohibited from using the sinking fund to pay the maintenance charges.
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