Before Buying a Property in Cambodia, Verify Two Main Licences
Updated on: June 14, 2023, 7:40 a.m.
Published on: June 14, 2023, 7:40 a.m.

Before Buying a Property in Cambodia, Verify Two Main Licences

Before investing in real estate in Cambodia, it is crucial to ensure that the developers have obtained the necessary licences to legally build and sell the property. In Cambodia, two key documents should be requested from developers to validate their compliance with regulations: the Construction Licence and the Sales Licence. This article will shed light on the significance of these licences and their importance in safeguarding your investment.

The Construction Licence

The Construction Licence serves as evidence that developers have been granted legal permission to construct a property. It is essential to verify this licence to ensure that the developers have fulfilled all the necessary requirements set forth by the relevant ministries and governing bodies. By possessing a Construction Licence, developers demonstrate their adherence to safety standards, environmental regulations, and building codes.

The Sales Licence

In addition to the Construction Licence, the Sales Licence is equally crucial in the property purchasing process. This licence grants developers the legal authority to sell properties to prospective buyers. It is vital to ascertain the possession of a valid Sales Licence to ensure that the developers have undergone the necessary procedures and obtained official approval to market and sell the property.

Separate Issuing Authorities

It is worth noting that the Construction Licence and the Sales Licence are issued by separate ministries and governing bodies. This distinction is an important factor to consider, as it is not uncommon for developers to possess one licence without the other. While developers may hold a Construction Licence, indicating their competence in building properties, they may not possess a Sales Licence, meaning they are not legally authorised to sell the property.

The Implications of Unlicensed Developers

Failure to verify the licences of developers can lead to potential legal and financial repercussions. Investing in a property without the necessary licences exposes buyers to risks such as legal disputes, construction defects, or even the possibility of the property being deemed illegal and subject to demolition by the authorities. Therefore, thorough due diligence is vital to protect your investment and ensure a secure and lawful property transaction.

Find Reliable Developers

When house-hunting, it is crucial to find reliable developers with a proven track record of successful projects. By considering a developer's past projects, potential homebuyers can gain valuable insight into their commitment and ability to complete projects. A prime example of such reliability can be seen in the Japanese developer behind J Tower Condo. This developer has successfully completed and sold two previous projects, J Tower 1 and J Tower 2, in Phnom Penh within just a few months.


If you are looking to find more reliable properties in Cambodia, click here to explore our selection of trusted developers.