As Cambodia continues to welcome increasing numbers of tourists and foreign visitors, especially during the high season, many are also showing interest in investing in real estate. With more direct flights, new infrastructure, and growing optimism in the market, Cambodia remains an attractive destination for property buyers.However, before buying property in Cambodia, it’s important to understand the different types of property ownership documents, also known as property titles. These titles are legal papers that show who owns the property and what rights they have over it.In this article, realestate.com.kh will break down the main types of property titles in Cambodia, how they work, and what foreign buyers need to know.Hard Titles (Official Ownership)A Hard Title is the most secure and legally recognized type of property ownership in Cambodia. These titles are issued by the Ministry of Land Management, Urban Planning and Construction and are stored in the national land registry system.If there’s ever a dispute between a Hard Title and another type of title, the Hard Title owner usually wins in court.Further reading: What is the difference between Hard Titles and Soft Titles in Cambodia?Common types of hard titles:LMAP Title (Land Management and Administration Project)The most accurate and safest form of Hard TitleComes with GPS coordinates that clearly show the land boundariesTwo versions exist: one with a QR code and one withoutIdeal for avoiding land disputesFeature TitleThe oldest type of Hard Title, used in the 1980s and 1990sMany of these are now being upgraded to the LMAP systemStill valid, but may lack some modern details like GPSSecond-Generation Hard TitleIntroduced in the 2000sMore detailed than Feature Titles, but newer applications are now registered under LMAPStrata Titles (Hard Titles for Foreigners)Many foreigners believe they cannot legally own property in Cambodia, but Strata Titles are the exception. This is a special type of Hard Title that foreigners can own, but only under certain conditions.What is a Strata Title?A Strata Title allows individuals to own a specific unit in a co-owned building, like a condo, apartment, or office space. This means you can legally own your unit, while common areas (like lobbies, pools, and gyms) are shared.Conditions for Foreign Ownership:Foreigners cannot own ground-floor unitsAt least 30% of the building must be owned by Cambodian citizensApplies only to buildings registered after 2009Most suitable for condos and commercial spacesExample: A foreign investor can buy a condo unit on the 10th floor of a co-owned building with a Strata Title, but cannot buy a villa or a landed house.Additional reading: Is Buying Off-Plan Property in Cambodia the Smart Move for Investors and Homebuyers?Soft Titles (Informal Ownership)A Soft Title is the most common type of ownership in Cambodia, especially for locals. However, foreigners cannot legally own property under a Soft Title.Soft Titles are issued by local authorities (not the national government), and they are not registered with the Ministry of Land. They are cheaper and faster to obtain, but they are riskier because they don’t carry the same legal protection as Hard Titles.Over the years, many Soft Titles have been upgraded to Hard Titles through a legal registration process.Example: A Cambodian family may own land under a Soft Title in a province, but to legally sell it to a foreign buyer (via a Trust or as part of a co-owned building), they’d need to upgrade it to a Hard Title.Can Foreigners Own Landed Property (Like Boreys)?No. Under current law, foreigners are not allowed to own land or houses on the ground (landed property) in Cambodia. This includes Borey homes, which are very popular housing projects in the country.The only legal way for foreigners to invest in Cambodian land is through a Trust structure.Learn more about how foreigners can legally own property in Cambodia.Trust Law in CambodiaIn 2019, Cambodia introduced the Trust Law, allowing foreign investors to indirectly own land by placing it under a Trustee, a registered company or person who holds and manages the property on behalf of the foreigner.This method is more complex and usually used for large investments. It’s important to choose a reliable and registered Trustee to avoid legal issues.As of late 2022, 52 registered trusts had been approved by the government.Example: A foreign investor wants to invest in a piece of land to build a factory. Since they can’t own it directly, they register a Trust with a Cambodian Trustee to hold the land on their behalf.Read more about Cambodia’s trust service and how it helps foreign investors.Final Tips for Property Buyers in Cambodia Foreigners can legally own condos or office units with a Strata TitleForeigners cannot own land or Borey homes directlyHard Titles are more secure than Soft TitlesLMAP Titles offer the best protection thanks to GPS and national registrationSoft Titles can be converted to Hard Titles with the right processUsing a Trust is a legal way for foreigners to invest in land indirectlyIf you are looking to explore property opportunities in Cambodia, whether for investment, retirement, or business, make sure to do your research and work with licensed real estate professionals and legal experts.For updated property listings, legal advice, and investment guidance, visit Realestate.com.kh, Cambodia’s leading property platform! 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