Property with soft title is risky?

Soft title certificate is  property certificate issued by a local government but not recognized by the laws of the Central Government of Cambodia. In practice, it is evidence of  the property right. When the holder is legally affected, it is regarded as a phased proof of the acquisition of property rights.
The soft title is usually an ordinary A4 paper with the signature of the original holder and the purchaser, and the local government officials also have a signature record.
Since most of the land in Cambodia was not registered with government institutions, soft title certificates are very common in Cambodia. The holders start trading when they are registered with the local government. If they want to convert into hard title, they must have legal rulings and confirmations to be recognized as Legal owner.
The term of the soft title property is based on the actual registration date, so in fact it is not a permanent property right.
Due to the complexity of the process of converting soft title into hard title and the limitation of the term of ownership, the legal effect is not great for foreign investors, it is risky, and the property of soft title property is not owned by the purchaser and cannot be used as mortgage or loan.
In order to avoid the transfer fee, the soft title certificate used to be the most common form of property rights in Cambodia, but the newly built apartment buildings are hard titles certificates generally.