Whether you are a seasoned investor or a first-time buyer, Cambodia is becoming an attractive destination for property investment. Comparatively cheaper than other Southeast Asian countries, it offers a variety of properties and projects worth looking into.
However, before you take the plunge, it's crucial to understand the process involved in property buying.
In this article, we will provide a checklist for buying property in Cambodia
1. Verify the Ownership (a.k.a Title)
To avoid disputes and issues related to ownership, conduct a thorough investigation to ensure that the property you're interested in is legally owned by the seller or the developer. Verification of ownership is essential whether it is land or property. A title or ‘deed’ is an official document confirming who owns the property, its location, and what rights the property owner enjoys. They can be categorized into Hard title, Soft title, and Private Ownership in Co-owned Buildings – also known as Strata Title.
2. Development Company Registration
Development companies must register and obtain approval from relevant ministries before proceeding with construction. To ensure legality, you can ask to see their company registration before proceeding.
3. Master Plan
For any new development project, a well-thought-out master plan is crucial. In addition to obtaining other necessary licences, a detailed plan must be presented to the ministry to demonstrate the project's potential for success in the future.
4. Construction Licence
To ensure quality the company undergoes a rigorous background check by the Ministry of Land Management. Only one registered construction company is allowed to build the units and infrastructure, and once cleared, they are granted a licence.
5. The Sales License:
In addition to the Construction License, the Sales License is equally crucial in the property purchasing process. This license grants developers the legal authority to sell properties to prospective buyers. It is vital to ascertain the possession of a valid Sales License to ensure that the developers have undergone the necessary procedures and obtained official approval to market and sell the property.
It’s crucial to review all contracts and agreements carefully. This includes the sales and purchase agreement (SPA), lease agreement, and any other legal documents related to the property transaction. Make sure to understand all the terms and conditions, including the payment schedule, transfer of ownership, and any other relevant clauses.
At Realestate.com.kh, we recommend that you engage with a professional real estate agent and a lawyer to protect your interests.
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