You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

August 26, 2024

Cambodia Clarifies Registration Process for Pre-1997 Co-owned Buildings

Subscribe to Updates

On July 19, 2024, Cambodia’s Ministry of Land Management, Urban Planning, and Construction (MLMUPC) issued Prakas No. 050 on the Formalities and Procedure for Registration of Private Units in Co-owned Buildings Constructed before December 19, 1997. This new regulation aims to address the lack of clear guidelines for registering units in co-owned buildings constructed prior to 1997 and ensure protection of legal ownership rights for private owners of co-owned buildings constructed before December 19, 1997.

Background

Cambodia’s real estate market, including co-owned buildings and condominiums, has been experiencing rapid growth. As more individuals acquire separate units in co-owned buildings, the demand for proper registration of each unit has increased. While existing mechanisms like Sub-Decree No. 46 on Systematic Land Registration and Sub-Decree No. 48 on Sporadic Land Registration provide frameworks for registering immovable properties, they do not specifically address the registration procedure for co-owned buildings constructed before 1997.

Definition of Co-owned Building

A co-owned building contains “private units” exclusively owned by individual co-owners and “common areas” used by all co-owners. This includes various categories such as villas, semi-villas, attached houses, condominiums, and other types of houses with common structures.

Application Documents

The new prakas introduces a more straightforward documentation process for registering private units in buildings constructed before December 19, 1997, compared to previous regulations (specifically, Sub-Decree No. 126 on the Management and Use of Co-Owned Buildings). The required application documents now include:

  • One copy of application form in Khmer
  • Two copies of certified identification documents for each co-owner
  • Two copies of certified documents of property ownership (if any)

Notably, certain documents, such as the internal regulations and detailed architectural plan of the co-owned building, are not required. These more lenient requirements encourage more owners to register their private units, as it makes it easier to secure certificates and comply with the law.

Procedure

Private units in co-owned buildings constructed before December 19, 1997, that have not been registered through the land systematic registration process may be registered through an additional sporadic land registration procedure in accordance with the existing applicable regulations.

Cambodia’s sporadic land registration mechanism, also known as “individual land registration,” allows a landholder to apply individually to the competent authority for a land certificate. This process enables each owner to register their units without requiring all owners to register all units together. This makes it easy for the owners to obtain the certificates for their respective units without having to wait for others.

The original immovable property certificates or other proof of legal possession must be submitted to the cadastral administration to obtain new certificates of ownership for private units. The old certificates or proof of legal possession will be nullified and retained by the cadastral administration.

Conclusion

This prakas establishes a clear framework for regulating ownership of private units in Cambodia. It enables authorities to better monitor the safety and legality of older buildings, ensuring compliance with current construction regulations and standards, and its implementation provides significant benefits to owners of private units in co-owned buildings constructed before December 19, 1997. The prakas serves as a reminder for these owners to apply for ownership certificates for their private units.

However, the current regulations do not clarify whether foreign nationals who own units in buildings constructed before 1997 can register or transfer their units to other foreigners. In practice, it appears that foreign parties are still unable to register these units or transfer ownership to another foreigner. This situation creates challenges for foreign buyers who have already purchased such units.

It is anticipated that future regulations may address this issue, providing clarity and potential solutions for foreign nationals to register the units they already purchased.

For more information on how this new prakas may affect property holdings or investment strategies in Cambodia, please contact Tilleke & Gibbins at [email protected].

Related Professionals

Practices

Real Estate

Location

RELATED INSIGHTS​ 

November 1, 2023
The commercial real estate sector in Southeast Asia is a dynamic and innovative space, but businesses also face an array of complex legal challenges. With real estate investments transcending borders and regulations, businesses in the region confront a legal environment that demands a clear understanding of the rules and procedures in each jurisdiction. Authored by legal experts at Tilleke & Gibbins, Commercial Real Estate Law in Southeast Asia is a comprehensive resource that addresses the legal issues relevant to enterprises involved in the commercial real estate sector. The guide explores the nuances of commercial real estate law in Cambodia, Laos, Myanmar, Thailand, and Vietnam, providing an overview of the regulatory framework and legal environment governing property transactions in these countries. Within the guide, readers will find detailed sections dedicated to each country, offering in-depth insights into the legal instruments, regulatory authorities, and procedural requirements that shape the commercial real estate landscape. Each section outlines the real estate activities that are permissible, those that are restricted, and the associated liabilities and penalties for noncompliance. The full Commercial Real Estate Law in Southeast Asia guide is available through the button below.
Read More
October 6, 2023
On August 25, 2023, Thailand’s Ministry of Interior issued the Ministerial Regulation Prescribing the Types of Hotels and the Criteria for Hotel Business Operation No. 2 B.E. 2566 (2023), which amends the threshold for hotel license exemption and hotel business operation requirements specified in the similarly named ministerial regulation from 2008. The ministerial regulation, issued by virtue of the Hotel Act B.E. 2547 (2004), adjusts the hotel type classifications and introduces new compliance requirements for other types of structures that can be used as hotels (e.g., rafts, tents, or containers). The 2023 ministerial regulation was announced and published in the Government Gazette on August 30, 2023, and will come into effect after 60 days (i.e., on October 29, 2023), amending certain provisions in the original 2008 ministerial regulation. Key changes and new requirements under the 2023 ministerial regulation are detailed below. Hotel License Exemption Threshold The 2023 ministerial regulation raises the threshold for exemption from the requirement to obtain a hotel license. Under the new rules, accommodations with up to 8 rooms accommodating no more than 30 guests (previously no more than 4 rooms and 20 guests) are not regarded as hotels under the Hotel Act, and thus, a hotel license is not required. Hotel Types The 2023 ministerial regulation also changes the definition of the types of hotel accommodations that require a hotel license under the Hotel Act. The new classifications are: Type 1: Hotels with up to 50 guest rooms only. Type 2: Hotels with more than 50 guest rooms only, or hotels with (1) guest rooms and (2) a dining room, restaurant, or kitchen. Type 3: Hotels with (1) guest rooms, (2) a dining room, restaurant, or kitchen, and (3) an entertainment venue under the law governing entertainment venues, or a conference room. Type 4: Hotels
Read More
April 11, 2023
On April 3, 2023, the government of Vietnam issued Decree No. 10/2023/ND-CP (“Decree 10”) to resolve a number of existing land-related problems pending the expected promulgation of a new Land Law later this year. The changes under Decree 10, which will take effect on May 20, 2023, include the following: New Regulations on Land Use Right Bidding Decree 10 outlines the conditions for organizations and individuals to participate in the bidding process for land use rights, as well as the conditions that must be met for the land site to be eligible for bidding. Specifically, in addition to the conditions already stated in Article 58.3 of the Land Law 2013 and Articles 14.2 and 14.3 of Decree No. 43/2014/ND-CP, organizations seeking to participate in the land use rights bidding process must ensure that no more than one company with cross-ownership participates in the bidding. Furthermore, they must also submit a 20% deposit of the total value of the land site, which is the starting price for the bidding. After the announcement of the auction results, the down-payment and any interest earned will be converted into a security deposit to ensure the bidder’s financial obligations are met. If the winning bidder fails to pay the full amount for the land use rights, the security deposit will be forfeited. In addition, a land site put up for bidding must satisfy certain conditions, such as having a starting price of bidding determined by the state authority and having an approved 1/500 detailed plan for the land used for investment and construction of residential buildings. The auction must be conducted on a plot-by-plot basis. Certifying Ownership of Real Estate for Tourism Accommodation Ownership of buildings on commercial and service land that are used for tourism accommodation purposes (such as condotels or other types
Read More
March 21, 2023
Thailand has issued a royal decree officially reducing the land and building tax due in 2023. The Royal Decree on Land and Building Tax Reduction (No. 3) B.E. 2566 (2023), which was announced and published in Thailand’s Government Gazette on March 19, 2023, and came into effect the following day, will effectively reduce land and building tax payments by 15% in 2023 for the following types of land and buildings: Land or buildings used for agricultural purposes; Land or buildings used for residential purposes; Land or buildings used for other purposes; and Vacant or unused land or buildings. Owners of these types of land or buildings are therefore only required to pay 85% of the land and building tax normally owed for 2023. Furthermore, owners of certain types of land or buildings that were eligible for tax reduction of 50% or 90% under the Royal Decree on Land and Building Tax Reduction B.E. 2563 (2020) will enjoy an additional 15% reduction of the tax amount that was reduced by 50% or a continuation of the 90% tax reduction, depending on the circumstances. For more details on these measures, or on any aspect relating to Thailand’s land and building tax, please contact Chaiwat Keratisuthisathorn at [email protected] or +66 2056 5507.
Read More