The following information explains the steps necessary for transferring land titles of ownership in Cambodia, thanks to Realestate.com.kh.
Step 1 Land Title Transfer in Cambodia.
The buyer verifies the title certificate with the Land Office, checking for potential liens (debt) or other encumbrances: For the first step, the buyer must obtain a copy of the initial title certificate from the seller and verify proper ownership, ensuring that the seller is the rightful owner of the title certificate. He/she verifies the title certificate with the land office to ensure that there are no liens, mortgages or other encumbrances registered already for that property.
Relevant Government Agency: Land Office Estimated time to complete the step: 10 days (should occur simultaneous to steps 2 and 3)
Official cost: According the Prakas 995 dated of December 28th 2012 on public service at Ministry of Land Management, Urban Planning and Construction = KHR 50,000/US$12.50
Step 2 Land Title Transfer in Cambodia.
Obtain information on the property from the relevant Commune Council Official: The land purchaser must contact the village chief or the commune council official, in which the property is located, to obtain information on the land, in addition to an official search upon the title at the municipal land office.
Relevant Government Agency: Commune Council Estimated time to complete the step: 10 days (should occur simultaneous to steps 1 and 3)
Official cost: No Cost
Step 3 Land Title Transfer in Cambodia.
The buyer must obtain the certificate of incorporation of the seller’s company and other official documents from the seller: If the landowner is a legal entity, the buyer must obtain a copy of the ID of the shareholder, or person acting on behalf of the company, and a certified/notarized copy of the certificate as issued by the Ministry of Commerce. These documents are needed to verify the accuracy and identity of the company name appearing on the title certificate. A Power of Attorney is also needed, as well as a resolution signed by the Board of Directors from that company authorizing the named individual to represent the company at the land office, accompanied by the Power of Attorney implementing that Resolution.
Relevant Government Agency: Ministry of Commerce Estimated time to complete the step: 10 days (should occur simultaneous to steps 1 and 2)
Official cost: KHR 80,000/US$20
Step 4 Land Title Transfer in Cambodia.
Apply for registration at the District Land Office of the Ministry of Land Management, Urban Planning & Construction (MLMUPC): When 2 persons/companies wish to buy/sell real property, they must first go together to the district office of the Ministry of Land Management, Urban Planning & Construction (MLMUPC) and arrange to prepare and sign documents. The documentation needed includes the company’s statute, its Certificate of Incorporation, and Power of Attorney (obtained in Step 3). At the same time, the original Title Certificate held by the seller must be presented to the Khan at the time of signing the deed, in order to have the name of the new owner officially inserted on the document.
Relevant Government Agency: District Land Office, MLMUPC (District Land Office of the Ministry of Land Management, Urban Planning & Construction) Estimated time to complete the step: 20 - 30 days
Official cost: A cadastral transfer fee of KHR 600,000 is paid to MLMUPC.
Step 5 Land Title Transfer in Cambodia.
Pay transfer tax at the Tax Collection Office: A transfer tax of 4% of the total value of the property is paid to the Ministry of Economy and Finance at the Tax Collection Office, relevant to the location of the transferred property. A Tax Receipt is then issued to prove that the property transfer tax has been paid. The 4% transfer tax is set out in Article 40 of the Law on Finance 1995. In Phnom Penh, however, this tax is not assessed based on the true transacted value of the property; but, rather, based on a schedule of price of property determined by the Phnom Penh Municipality. The assessed valuation by the Phnom Penh Municipality is usually based on the total number of square meters, the land’s location, use, potential use etc. The tax is thus not based on the actual price for which the land is sold; rather it is based on the assessed value made by the Municipal office. If the land is more than 1200m², the surplus of the land will also be subject to "unused land tax." For land less than 1200m², the unused land tax is not applicable. *The time for the tax office to complete the calculation of transfer tax will depend on the location of the land and its size.
Relevant Government Agency: General Department of Taxation Estimated time to complete the step: 1 day*
Official cost: 4% of property value (transfer fee)
Step 6 Land Title Transfer in Cambodia.
Return to Cadastral office to complete the registration process: After all taxes are paid, the parties may return to the cadastral office at the MLMUPC and sign/thumbprint a MLMUPC form for buying/selling real property, as filled in by MLMUPC official. The signing/thumb printing must be witnessed by a local authority such as commune chief, who will also thumbprint. These procedures are based on Land Law Arts. 65, 244 and 245. Land Law Art. 69 bars transfer unless all necessary taxes are paid. The documentation provided should include payment receipts of transfer tax (obtained in Step 5).
Relevant Government Agency: MLMUPC (District Land Office of the Ministry of Land Management, Urban Planning & Construction) Estimated time to complete the step: 5 days
Official cost: Cadastral service fee paid in Step 4
Step 7 Land Title Transfer in Cambodia.
Obtain the certificate of title from the Municipal Land Office: The Khan/District land office forwards all the “transfer documents” to the Municipal Land Office where it issues the final Certificate of Title in the new owner’s name. It is now registered.
Relevant Government Agency: Municipal Land Office Estimated time to complete the step: 1 to 2 weeks. The last procedural step in practice can take several weeks, depending on the diligence of the land officials and interested parties.