If you are considering buying or selling real estate in Cambodia, it's essential to understand the sales and purchase process. This article will provide a clear and direct overview of the steps involved.
The first step is to conduct a thorough investigation of the property. This includes a title search to ensure there are no boundary issues and to verify the accuracy of measurements. It is crucial to confirm that the property is free from any legal disputes or encumbrances.
Once you have completed your due diligence and are satisfied with the property, it's time to negotiate the terms with the owner. This includes discussing the price, payment terms, and any additional conditions or requirements.
Sales and Purchase Agreement
Once both parties have reached an agreement, the next step is to prepare and sign a sale and purchase agreement. This legally binding document outlines the terms and conditions of the transaction, including both parties as the buyer and seller, a description of the immovable property, the sale/purchase price, payment of the sale/purchase price, registration of ownership and the handover details.
Transfer Document and Stamp Duty
After signing the agreement, you need to submit the necessary transfer documents to the Cadastral office. These documents typically include the sale and purchase agreement, identification documents of the parties involved, and any other relevant paperwork. Additionally, you will be required to pay the stamp duty tax of 4%, which is a percentage of the property's value. Currently, the stamp duty tax is exempted for properties below $70,000 until the end of 2023.
The Cadastral office will review the transfer documents, and if everything is in order, they will be forwarded to the Land Department for further processing. This step involves transferring the property's ownership from the seller to the buyer officially.
Confirmatory Due Diligence
Once the transfer is complete, it is advisable to conduct confirmatory due diligence. This step involves double-checking that the property has been accurately transferred and ensuring there are no spelling mistakes or errors in the information provided. This helps to avoid any potential future disputes or complications.
By following these steps, you can navigate the sales and purchase process in Cambodia smoothly and ensure a successful transaction. Remember to consult with reliable real estate agents familiar with local laws and regulations to ensure compliance and protect your interests.
If you are seeking more guidance on real estate in Cambodia, feel free to consult our guides here