What should we conern most when we purchase property in Cambodia?

The rapid growth of Cambodia's economy has triggered a rapid rise in the real estate industry, attracting a large number of investors from Japan, Singapore, China, Europe and the United States.

                                    Investors are crowded in one project

Today, we are witnessing more and more investment group visit property sales offices in Cambodia, and large numbers of Cambodia properties are being purchased by the Chinese. The property agent will describe the advantages of investing in Cambodia impeccably, the project is perfect, and the buyers are impressed. But overseas home investors need to be more cautious. It is best to consult these important issues before paying.

1. the Cambodian real estate sells as gross area or net area? 

Cambodia's new developments sells both of it, but most properties are priced based on net area, and some developers will provide a pricing method based on the gross area for the convenience of Chinese customers. The unit price of the two pricing methods is different, but the total price is the same.

2. Is there any different towards foreigners in term of property rights years ?
There are two types of property title certificate in Cambodia, namely, permanent property rights and limited-term property rights. Permanent property rights means that the owner can own the property permanently. Limited-term property rights mean that the owner can only own the property for 99 years, but it can be renewed the contract after 99 years.

3. Can foreigners purchase property by loans in Cambodia?
Foreigners can buy a house with a loan for a maximum period of 12 years. The total value of the loanable property is 65%, and the annual interest rate is about 9.96%. Applying for a loan requires documents such as employment certificate and income certificate, and the process is complicated.

4. What is kind of taxes and fees do I have to pay in addition to the payment for a house in Cambodia?
For hard title certificate, the buyer must pay a 4% sales tax on real estate transactions and $ 1,000-3,000 for changing the owner's name. For soft title certificate, the buyer only needs to go through the formalities with the community authority. The handling fee is about $ 200 to $ 800. According to the size, location and selling price of the property, the lawyer's fee is about $ 750. In addition, after handing over the house, the owner must pay 0.1% of the house tax to the Ministry of Economy and Finance annually, and the house price is evaluated by the Ministry of Economy and Finance.

5. What are the delivery standards for Cambodian apartments?

Apartments in Cambodia are basically two types: finely furnished and move in condition. This means that the total price includes the cost of finely decorated. Standards for fine decoration are basic decoration such as wooden floors, latex paint, walls, bathrooms, toilets, washbasins, and kitchen counters in  kitchen. Part of new developments may provided a small amount of home appliances.

6.What procedures need to be done when handing over the house?
Cover handprints for use;
Prepare a power of attorney (entrust the company to rent or sell on behalf);
Bank account opening
Pay the house payment in full;6 months management are paid in advance.
The management fee and utilities fee are paid by the tenant after renting the house.
Execution of household conventions and property management requirements;
After completing the house payment procedures, you can prepare documents, pay taxes and agency fees, apply for a hard card, and register ownership procedures.

7. How much is the apartment property management service fee?
Generally it is 1-2 US dollars / square meter / month. The property management service fee is charged according to the regulations of the real estate developer. The level of the property management service fee is related to the completeness of the facilities of the real estate.
Attention: The reply and commitment of the real estate agent cannot be used as the legal basis in the event of future disputes, and all are subject to the purchase contract and supplementary agreement.