If you’ve wondered what the deal is with buying property in Cambodia, you aren’t alone. In this article we learn from Leah Valencia, one of the co-founders of Elevated Realty, a Phnom Penh real estate company. Elevated Realty combines the best of expat-style service with local knowledge. Leah filled us in on what’s required for a foreigner to buy property in Cambodia and explains the difference between a hard and soft title.
Can a foreigner own property in Cambodia?
“Yes, foreigners can own property in Cambodia but there are restrictions. Foreigners can only own properties on the first floor or higher (not the ground floor), up to 70% of any one building, however this only applies to buildings with a strata title. A strata title is a type of hard title that allows an owner to divide a building into multiple individually saleable properties, this is also known as the “condominium law”, it is generally only granted to new condo buildings that are being built for this specific purpose.
Alternatively, foreigners can own 49% of private property, with or without a structure, if they are partnered in a Cambodian legal entity. A Cambodian legal entity is defined as any legal entity that has 51% or more of its shares held by Cambodian citizens. So as long as you own the property in conjunction with a Cambodian national, you can own any type of property you desire.
Currently, this law is not being regularly enforced, this is why you will hear stories of people who hold titles to properties around the city. There is a level of risk assumed with acquiring property in this way as it is subject to enforcement at anytime.”
What are the requirements for a foreigner to own property in Cambodia?
“To purchase property in Cambodia all you need is a current passport and visa. However, I would strongly recommend that you have someone advise you through the process, such as a real estate agent or a lawyer. It is important to conduct a title search before purchasing property. The title search will confirm who holds the title to the property and reveal registered mortgages or other encumbrances. Bear in mind that there can be other impediments to transferring which are not visible through a title search, e.g., a claim by a senior politician to the property. The buyer will not be given the actual title to conduct the search, because this is the sellers’ only evidence of ownership. The buyer will instead get a copy of the title, and it is important to confirm that it is a recent copy.”