As part of the land transfer title process when purchasing property, there are processes to be followed, documents obtained and consultations that must be undertaken.
The buyer verifies the title with the Land Office and checks for potential liens (debt) and/or other encumbrances. S/he must obtain a copy of the original title to verify the seller is the rightful owner. This is also verified with the land office to ensure there are no encumbrances for that property.
Estimated time: 10 days (simultaneous to steps 2 and 3)
Official cost: (according to Ministry of Land Management, Urban Planning and Construction Prakas 995 dated 28/12/2012) = KHR 50,000 / US$12.50
The Buyer must contact the village or commune council official to obtain information on the property. Then s/he must undertake an official title search at the municipal land office.
Estimated time: 10 days (simultaneous to steps 1 and 3)
Official cost: Nil
Step 3 (if a company is buying or selling property)
Buyer obtains official and certified copies of the seller’s company, such as:
- ID of the shareholder/nominee, or person acting for the company
- Certified/notarized copy of Articles of Incorporation
- Certified copy of Patent Tax certificate
- VAT tax certificate
If the Buyer is purchasing as a company, the same is required from him/her.
These verify the accuracy and identity of the company name appearing on the title certificate. Power of Attorney is required and resolution signed by the company’s Board of Directors. This authorises the named individual to represent the company at the land office.
Estimated time: 10 days (simultaneous to steps 1 and 2)
Official cost: KHR 80,000/US$20.00
Apply for registration at the district office of the Ministry of Land Management, Urban Planning & Construction (MLMUPC). When 2 persons/companies wish to buy/sell real property, they must first go together to the district MLMUPC office to sign documents. The documentation needed includes the documents as Step 3. The original title is presented to the Khan by the Seller when signing. The new owner’s name can now to be officially added.
Relevant Government Agency: District Land Office of MLMUPC
Estimated time: 20 – 30 days
Official cost: Transfer fee of KHR 600,000 paid to MLMUPC
Pay 4% of the property value (receipt issued) to the Ministry of Economy and Finance at the local Tax Collection Office. In Phnom Penh, this is assessed according to a property value schedule determined by the Municipality (usually based on size, location, use, potential use, etc. of the property). If the land is more than 1200sqm, the land surplus is subject to “unused land tax”.
Estimated time: 1 day (depending on location and size of property)
Official cost: 4% of property value (transfer fee)
After paying taxes, the parties return to the MLMUPC cadastral office to sign/thumbprint a form for buying/selling property. This is witnessed by a local authority (e.g. Commune chief). The documentation should include tax payment receipts (obtained in Step 5).
Estimated time: 5 days
Official cost: Cadastral service fee paid in Step 4
The Khan/District land office forwards the transfer documents to the Municipal Land Office. The final Certificate of Title is then registered and issued in the new owner’s name.
Estimated time: 1 to 2 weeks (depending on the diligence of officials and interested parties)
Learn more about the land title transfer process and tax laws in Cambodia