MOC announces new law to prevent profiteering on real estate contracts

The Ministry of Commerce has announced the implementation of the Consumer Protection Law and the Declaration on Unfair Contracts to protect consumers from over-exploitation in real estate and housing. This is according to the press release dated June 30, 2023.

According to the Ministry of Commerce, the real estate and housing sector in Cambodia is gaining momentum, which has sparked intense competition in the real estate sector, which could lead to dishonest competition or excessive exploitation of consumers.

The Ministry of Commerce added that in the past, in the flow of real estate in Cambodia, the use of standard forms of contracts by some developers has been observed to be unfair. Some standard forms of contract do not allow users to request amendments to any of the terms or conditions of the contract to protect their legitimate interests.

Some standard forms of contracts embody the content and wording of the contract to take excessive advantage of consumers. These unjust promises include exceptions regarding the exemption or limitations of developers on the guarantees of their goods or services; One on the type, quantity, price, and quality of goods or services, or modify the essential terms of the standard form of other contracts without the prior notice and consent of the consumer; and the contract that authorizes developers can be unilaterally interpreted or terminated at the discretion of them.

Therefore, to protect consumers from excessive profiteering, the Ministry of Commerce has issued a proclamation on fraudulent contracts aimed at protecting consumer interests, preventing the establishment of standard forms of fraudulent and exploitative contracts to consumers.