Knowledge! Official Rates for Agent Fees and Valuation Costs in Cambodia

Recently, the Real Estate Business & Pawnshop Regulator (RPR) issued a new Prakas on "service and commission fees for valuation and real estate services". 

The new Prakas aims to:

- Ensure the efficiency of management and check of charging commission fees and professional commission fees for offering real estate services.

- Ensure the equity and balance of interest between real estate firms and customers using real estate services.

- Maintain order in the real estate market by promoting competition with equality, transparency and fairness in the real estate market.

Therefore, if you are a property buyer or a seller, the below information relates directly to you. Please check it out!

Important points to know

✅ The company must display and clearly explain the formula for calculating the fee or commission for each type of service to the customer. The company must notify the customer in in case there is additional charges during the services and obtain prior consent from the customer. 

✅Companies or individuals who violate the regulations will be subject to a fine of up to 5,000,000 riel.

✅ If you encounter any company that does not have a professional license or certificate from the RPR , please report it immediately.

Valuation Fees

Licensed valuation firms charge fees based on your property's value:

However, for some special properties such as factories and business properties, fees depend on each case and the calculation formula with the pre-agreement with the valuation firm.

The valuation update fee will be charge 50% of the original price (limited to the same property within 1 year).

Example:

“A” is a licensed property valuation company  

“B” is a client who has requested that Company “A” conduct a valuation of his property.

Question:  

How much professional fee should Company “A” receive from Client “B” if the property is valued at $500,000?

Answer:

For the First $100,000 is applied:

$100,000 x 0.17% = $170

For the remaining $400,000 property value: 

$400,000 x 0.10% = $400

Total = $570

Commission Fee for Property Sale and Rentals

Example:

Question: 

If the house is rented out at $500 per month for a period of 3 years, how much does the owner need to pay for the agent commission fee?

Answer:

For a 3-year lease at $500/month:

= $500 + ($500 × 25%) × 2 years

= $500 + ($125 x 2 years)

= $500 + $250

 Total commission fee = $750

Punishment

Companies or individuals who violate the regulations may be subject to the following administrative sanctions:

* Written notice or warning

* Prohibition of operations or restrictions on certain activities

* Temporary suspension of licenses or certificates

* Revocation of licenses or certificates or permanent cessation of business activities

* Public disclosure of the violations 

* Taking other measures in accordance with applicable laws and legal regulations

* Fines from 1,000,000 riels to 5,000,000 riels in one case. The amount shall be doubled If continue violation.

List of licensed companies from the RPR

Click to view →https://rpr.gov.kh/operator/63aa9b4be9675c63ced0411c/list

Hotline: +855-16333146