Based on the civil code of Cambodia, a contract is an agreement where two or more persons are willing to cooperate to make, modify, or cancel obligations. Additionally, the sale and purchase agreement (SPA) is the contract between the buyer and seller, whereby the seller is responsible for giving the buyer title or other rights to the property being sold, while the buyer must provide the seller with the sale price in return.
This contract can be made through mutual agreement, either verbally or in writing. However, by law, the contractual purchase of real estate is required to be in writing. The Civil Code does not detail the information stated in the contract of sale of real estate, especially when selling and buying houses.
So what’s typically included in a Sales and Purchase Agreement (SPA) in Cambodia?
As said, a Sales and Purchase Agreement (SPA) is a legally binding contract between the buyer and seller that outlines the terms of a property transaction. While the exact content can vary based on the developer and buyer’s conditions, most SPAs in Cambodia generally include the following:
| Parties Involved | Details of the buyer and seller, including legal names and identification |
| Property Description | Clear information about the property (its type, location, size, and ownership title, in order to avoid any uncertainty) |
| Sales Price & Cost | The agreed sale price, payment currency (usually USD), and who covers related costs like taxes, legal fees, and transfer charges |
| Payment Method and Schedule | Clarify the payment method that both parties agreed on. Typically split into stages: a deposit, a payment at signing, and the balance after ownership registration. Payment terms may also include refund condition |
| Ownership Transfer | Outlines who is responsible for registering the ownership (often with MLMUPC) and the timeline for transfer completion |
| Handover Terms | Specifies when and how the property is handed over—usually after full payment—plus any warranties or post-handover support |
**Under Cambodian law, SPAs for immovable property must be in notarized form (Civil Code Article 336)**
Given the legal and financial significance of the SPA, it's important that the document is reviewed carefully and notarized, as required by Cambodian law. Buyers, especially those purchasing pre-construction or off-plan properties, should pay close attention to payment terms, transfer timelines, and any developer obligations post-handover.
To ensure your property transaction is safe, compliant, and transparent, always work with a licensed real estate agent and consider consulting a legal advisor. Realestate.com.kh is here to help guide you through the process, ensuring that your property transaction will be safe, compliant, and transparent as always!
-
Contact us now via-
📞+855 92 92 1000
Or come and visit us at The Connect Center- Opening hours
9:00 - 5:00 Monday-Friday
10:00 - 5:00 Saturday - Sunday
Location: #306BCD,Monivong Blvd (93) Sangkat Chakto Mukh, Khan Doun Penh, Phnom Penh
Comments