Definition of "Sinking fund"

Fund set aside for periodic payments, aimed at reducing a financial obligation taken out to buy real estate, or to accumulate enough funds to buy property or plant expansion. The principal deposited into the sinking fund earns interest. The total amount accumulated is then used for the desired purpose.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Percentage of rentals estimated not to be made because of actual and anticipated vacancies. ...

property that has been segregated into parts. ...

Person who dies leaving a will specifying the distribution of the estate. ...

Written proposals and acceptances applicable to the aspects of the transaction. The escrow agent must follow the purchase and sale agreement. ...

Individually owned lots and houses with community ownership of common areas. ...

Tenant breaks the lease because the landlord does not keep the premises habitable. ...

The right to demand that title be conveyed upon payment of the purchase price. ...

Same as term junior mortgage: Mortgage placed on a property after a previous mortgage. It can be a second, third, etc. mortgage. A junior mortgage is subordinate to the terms of a previous ...

See savings and loan association. ...

Popular Real Estate Questions