Compass Real Estate > Cambodia Investment Guides > Cambodian land purchase risks

Cambodian land purchase risks

482
2019-08-27
Summary:What are the risks of buying land in Cambodia? Mainly in soft title and hard title.

As we all know, Cambodia's land is privately owned and is also freehold property right. Although foreigners cannot buy directly, they can still legally acquire land by some means. So what are the risks of buying land in Cambodia?
In Cambodia, land is purchased with hard title and soft title. In addition to the market risk (bad location of land, not easy to transfer, etc.), we must pay attention to the potential risk of  soft title land.
What's the difference between a hard title and a soft title?
Simply, the hard title is a form of property ownership approved and issued by the Ministry of Land by the central government on the basis of land law. The certificate contains property number, certificate serial number, issuing unit and date, property location (road name, town, community, district and province); add GPS household registration index map.( It also shows the location of the land near the street, the type of land use, the area of the property (land size), ownership (including the names of owner parents), the basis for obtaining the property (receipts, land segmentation documents, sales contracts, gift contracts, etc.), mortgages, notes (such as company information) and other information.
Soft title is not authrized by law or only recorded by local government. In fact, when the holder encounters legal problems, it is regarded as a stage proof of the acquisition of property rights. (Usually on ordinary A4 paper, the signature of the original holder and the buyer, the signature of the village head or a higher official, similar to the sale agreement.)
Because most of Cambodia's land is not filed in government organs, soft card documents are very common. The law stipulates that if a soft title is to be converted into a hard title, it must be notarized before the legal owner can be identified.
The decree requires there should be a one-month notary period before a soft title application can be converted into a hard title. This announcement period, surveying, demarcation, and preparation of the GPS map, land survey. The holder of the critical land ownership must check the investigation report. If there are any disagreement, it is necessary to present the information to the land administration institution before the formal legal hard title can be handled.
If there are no unresolved disputes after the announcement period, this legal document will serve as the basis for the land administration institution to issue the formal property rights. No third party may claim any ownership of the land after the completion of legal authorization and certification procedures.
Many foreigners invest in soft title, in this announcement stage, there are 3 to 10 people who claim that  they are  the owner. 
In GPS positioning and demarcation of land boundaries, the more likely problem is that the surrounding landlords look for a variety of local relations to annoying you, because your land boundaries are blurred. 
Of course, if your land that nobody cares about, it's will be included in urban development planning. It's impossible to have good development projects in 10 years. 

Disclaimer: The re-forward articles on Compass website are for the purpose of conveying more information, and it does not mean that the Compass website agrees with its views or confirms the authenticity of its content. Article noted as "Source: Compass original", please note that the source from Compass. The content of the article is for reference only and should not consider as investment advice, and it does not mean that Compass agree with its views.

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