Seller and Buyer Guide
This page will provide you with important information , whether you are selling a land or willing to buy one.
Best advices for Buyers
As a general rule, it is a good idea to take your time and see many properties before buying one. This will allow you to have a clear idea of market prices and be more confident you’re signing for a fair deal. Discuss with people you meet yourself (restaurants, bars and hotels) and eventually show them the lands you visited, if they live in the area they may give you useful information on future developments in the area, neighborood and even sometimes on the real price of the land. Share with them also any details you have, including the identity of the person you’re dealing with for your property investment. We also recommend you to make sure you’re meeting the real owner of the land before you sign anything and start negotiating directly. Applying common sense may save you from spending too much money.
Types of property title
Soft Title
Really common in Cambodia, these titles are not registered at the ministry level, simply at the district and concil. Theyare legit but it is better to agree to have them converted to hrad title, by the owner, before handing over the totality of the money. It will also be easier for the owner to request to the local authorities for converting the soft title than for someone who is freshly arrived in the area. This suspensive condition can be included in a proper sale contract done by a lawyer or jurist.
Hard Title
Hard titles are fully registered at ministry level and offer the guarantee of the owner identity. The newest Hard Title are called LMAP, meaning they will include the exact GPS coordinates, offering an addtional guarantee in case of dispute of the boundary with the neighbour.
WE recommend to convert any hard title into LMAP title to avoid any problem related to boundaries.
Strata Title
These is a specific title, the only one allowing foreigners to have their name on the document of property. It applies only for the likes of condominium where a khmer national will be the owner of the ground floor and foreigners can own an apartment on the upper level floors. They are not yet very developed in Cambodia provinces.
Logical steps when buying a land
Once you are ready to buy a land you will go through the following process :
1/ Obtain a copy of the title and ask for a search at the Land office at the ministry of land management. You should get confirmation of the real owner and know about any mortgage of debt bound to the land. Delay is about 2 weeks.
2 / Buyer and seller do agree for the transaction and can go to sign a sale agreement/contract. Mandatory step is for both parties to meet at the district land office (sangkat) related to the area where the property sits. A ‘vente definitive’ document will then be released. There is no notary in Cambodia and this role is filled by the Sangkat.
3/ Submit the transfer documents to the Cadastral office and pay the stamp duty tax. Completion time to obtain a new title with new owner name is between 1 to 3 months.
All of the above is to be discussed with the 2 parties during negotiation, the whole process is normally simple but again, it is important to discuss costs and who will bear them.
Taxes when buying a property
There are taxes related to land transactions.
Purchase tax : The official rate is 4% of the land value and it must be paid to the Ministry of Economy and Finance at the General Deartment of Taxation, this is before the title can be transferred. It is common to see a lesser rate applied.
Annual tax: 0.1% of the purchase price.
Transfer fees: Can be between 800 USD to 1000 USD , paid to the cadastral office. In case you are willing to have a faster transfer it is sometimes possible to discuss with the cadastral office , expect some extra costs for a faster result.
The above costs must be discussed between buyer and seller at the moment of negotiations.