Investing in a condominium in Cambodia can be a rewarding decision, but it's essential to proceed with careful due diligence to avoid costly mistakes. Realestate.com.kh has compiled a comprehensive due diligence checklist to guide buyers through the key aspects of purchasing a condo in the Cambodian market. This guide outlines the critical checks and questions to ask before committing.
** Due diligence: is the process of collecting and assessing all of the legal documents and information related to immovable property to understand and identify the potential liabilities and be able to make an informed decision.
1. Project, Agent & Developer Verification
Begin your journey by verifying the credentials of the developer and the sales agent. Ensure the developer is licensed and legally registered in Cambodia, and that the agent—ideally supported by an in-house legal team—is also properly authorized.
Key questions might include:
- Has the project received official approval from the Ministry of Land Management, Urban Planning and Construction (MLMUPC)?
- Is the project a strata title development, allowing individual ownership?
- Does the developer have a reliable track record of completing and handing over projects on time?
It’s also wise to investigate any public complaints, legal issues, or disputes associated with the developer. Confirm whether the land has been used as loan collateral, as this can complicate ownership rights.
2. Financial & Tax Considerations
Understanding the financial aspects of your purchase or investment is crucial. Check whether the booking fee is refundable and be clear on the payment structure, including deposits, milestone payments, and final balances.
Buyers should ask:
- What taxes and fees apply, such as stamp duty or VAT?
- Are payments processed securely through a trusted channel?
- What is included in the sale—furnishings, fixtures, or incentives like rental returns?
Further reading: What Taxes Do You Pay When Buying Property in Cambodia?
3. Legal & Contractual Review
Before signing any agreements, thoroughly review the Sales and Purchase Agreement (SPA). It should cover all essential elements, such as pricing, payment timelines, penalties, refund policies, and conditions around transfer and ownership.
Pay special attention to whether the SPA:
- Mentions strata title registration and ownership rights
- Details of ongoing management fees and charges
- Outlines the foreign ownership quota (and whether it is still available)
Confirms your unit is not located on the ground floor if you're a foreign buyer (as ground-floor units are often restricted)
4. Ownership Transfer & Handover
As you approach completion, clarify the timeline and responsibilities for the final transfer of ownership:
- Will you receive the title certificate upon full payment?
- Who is responsible for registering ownership with MLMUPC?
- Are post-handover warranties or snag lists included?
- How long is the grace period?
- What is a grace period?
In off-plan property, the grace period is a window (typically 6–12 months) after the projected completion date during which the developer is not penalized for delays in handover. This period is built into the sale and purchase agreement to account for potential hold-ups such as delays in government inspections or final occupancy approvals, utility connection or infrastructure handover issues (like water, electricity, or road access), or weather-related construction impacts, especially during monsoon seasons.
These final steps ensure your investment is properly protected and legally yours.
Additional reading: Common payment terms for buying properties in cambodia
In summary, skipping proper due diligence can lead to significant financial and legal risks. By following this checklist, buyers—especially those purchasing off-plan or pre-launch condos—can secure their investment with greater confidence.
Always work with a licensed real estate agent who has access to in-house legal support! If you have any questions, feel free to contact Realestate.com.kh, your expert in this market. We’re ready to answer all of your questions and guide you through the process from start to finish!
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Location: #306BCD,Monivong Blvd (93) Sangkat Chakto Mukh, Khan Doun Penh, Phnom Penh
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