Transferring Land Titles in Cambodia: A Comprehensive Guide

Introduction:
Understanding the intricacies of property ownership regulation is crucial for anyone considering purchasing land or property in Cambodia. Property ownership is established and protected through a legal document known as a Title, which identifies the rightful owner of a piece of property. In Cambodia, property ownership is governed by the 2001 Land Law and the Constitution.

Possession vs. Ownership:
For foreigners interested in property ownership in Cambodia, it’s essential to differentiate between possession and ownership. Presently, two documents establish the right to either possess or own property in Cambodia.

• The “Soft Title,” also known as a Letter of Possessory Right, is issued by the Sangkat (commune) or Khan (village) chief. However, it is not registered at the Land Office and only serves as proof of possession.
• After five years of peaceful and uncontested possession and usage, one can request a “Hard Title,” also known as a Certificate of Title, from the Ministry of Land Management, Urban Planning, Construction (the “Land Office”), which serves as proof of ownership.

Our Recommendation:
We advise against purchasing property with a soft title unless the Land Office confirms the possibility of converting it into a hard title. We recommend hard titles and LMAP titles for land ownership in Cambodia.

Steps to Transfer Title:

1. Due Diligence and Verify the Title Certificate
   • Verify the seller’s ownership and clear title by obtaining the original title certificate and submitting it to the Ministry of Land Management, Urban Planning, and Construction (MLMUPC or the “Land Office”).
   • The Land Office will check for liens, mortgages, block notices, or other claims against the property. Any existing liens or mortgages are typically settled during the sale.
2. Obtain Information on the Property
   • Conduct an official search of the title at the local Khan (village) or Sangkat (Commune) Office to uncover any local records related to the property, including rental or lease situations.
   • Address any discovered disputes or issues with the seller and legal counsel before proceeding with the transaction.
3. Obtain Information about the Seller
   • Identify the seller, whether an individual or a company, and gather necessary documentation.
   • For individual sellers, obtain a copy of their identity document. For corporate sellers, gather company information and ensure the legal representative has the authority to sell the property.
4. Apply for Registration at the District Land Office of the MLMUPC
   • Visit the District Land Office with the seller to prepare and sign relevant documents, including the Vente Definite and transfer deed.
5. Pay Transfer Tax
   • Pay a transfer tax of approximately 4% of the property value to the Ministry of Economy and Finance at the General Department of Taxation.
6. Return to the District Land Office of the MLMUPC
   • Sign and thumbprint the relevant forms for buying/selling real property, witnessed by a local authority such as the commune chief.
7. Obtain the Certificate of Title from the Municipal Land Office
   • Once all transfer documents are forwarded to the Municipal Land Office, the new Certificate of Title is issued in the buyer’s name, completing the transfer of title.

Conclusion:
The entire title transfer process usually takes between 3 to 6 months. For a hassle-free experience, consider letting us handle these steps for you.