Sinking Fund


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.



Search Real Estate Glossary

 

Related Real Estate Glossary terms

Dereliction

(1) Intentional property abandonment or desertion with no hope of returning or recovery. (2) Recove ...

Call Option

Contract that gives the insurance company the right, not the obligation, to buy a stipulated stock o ...

As Is

(1) Term for second hand or damaged items sold without a sellers warranty. The purchaser accepts del ...

Lease Agreement

A contract between a lessor and a lessee to use property for a specified time period at an agreed to ...

Policy Period

Time interval during which policy is in force. ...

Pooled Investment Account

Combination of the funds of many policyholders held in a single account and invested as a single ent ...

Related Real Estate FAQ

What Is An Annuity?

An annuity is a long-term, interest-paying contract offered through an insurance company or financia ...

What Do I Need To Know About Auto Insurance?

Choosing the auto insurance requires consideration of manyfactors- Take into account everything you ...

What Is A Buydown?

A type of financing in which a developer or seller arranges for the buyer to get a loan at a rate be ...

What Is An Easement?

An easement is the right given by the landowner to use the property. ...

What Is A Mortgage?

A mortgage is a legal document that pledges your property as security (like collateral) for a loan. ...

What Is A Title?

A title is the right of property ownership. ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

6 Reasons you are not selling properties 10 Tips for Homebuyers How to become a real estate agent When to buy a house Why Use a Real Estate Agent?

FAQ

What is a lock in? What is a Ginnie Mae? What is principal? What do I need to know about Homeowners Insurance? What is an assumable mortgage?