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 24, 2021
Attorneys from Tilleke & Gibbins have provided the latest update to the Thailand contribution to Doing Business in…, a Q&A-style guide published by Thomson Reuters Practical Law that presents an overview of the legal framework for doing business in 63 jurisdictions worldwide. The Thailand chapter of the guide outlines Thailand’s legal system and key laws applicable to foreign companies doing business in the country. The chapter specifically covers the following main topics: Legal system: Thailand’s court system and codified legal system. Foreign investment: Lists of reserved business activities, restrictions on doing business with certain jurisdictions, exchange controls and currency regulations, and grants and incentives available to investors. Business vehicles: Ordinary partnerships, registered ordinary partnerships, limited partnerships, private limited companies, and public companies. Environment: Main laws and regulations, factory operation. Employment: Laws, employment contract requirements, work permits, and termination and redundancy. Tax: Taxes on employment, tax and nontax resident employees and businesses, corporate income tax, value added tax, special business tax, municipal tax, stamp duty, dividends, interest, intellectual property royalties. Competition: Important aspects of Thailand’s regulatory regime surrounding competition, centered around the updated Trade Competition Act. Antibribery and corruption: Laws, compliance requirements, regulatory authority. Intellectual property: Patents, trademarks, registered and unregistered designs, and copyright. Marketing agreements and advertising: Regulation of marketing agreements, Thailand’s Consumer Protection Act, direct marketing, role of the Consumer Protection Board and Food and Drug Administration. E-commerce: E-commerce laws and regulations, marketing and sales via online platforms. Data protection: An outline of Thailand’s Personal Data Protection Act. Product liability: Procedures and regulations for product liability and product safety, including the Unsafe Goods Liability Act and the Consumer Case Procedure Act. Product liability: Key regulatory authorities for trade competition, environmental issues, and financial services. To browse, download, or print the Thailand chapter, please visit the Practical Law website.
Read More
October 25, 2021
Michael Ramirez, a counsel in Tilleke & Gibbins’ dispute resolution group in Bangkok, has updated the firm’s contribution to the Global Attorney-Client Privilege Guide, published by Lex Mundi. The newly expanded guide provides information on what constitutes attorney-client privilege in over 70 countries around the world. The Thailand section of the guide contains in-depth information on the function and applications of attorney-client privilege in Thailand (or, as explained in the guide, an equivalent concept enshrined in Thai law), including coverage of the following topics: Privilege in corporations Common interest doctrine Litigation funding Crime-fraud exception Work product doctrine/litigation privilege Other privileges including mediation, accountant-client and settlement negotiation The interactive guide features expert contributions by Lex Mundi member firms from jurisdictions worldwide. Readers can browse the contributions, generate country-specific reports, and compare attorney-client privilege in multiple jurisdictions. For more information, please visit the Lex Mundi website.
Read More
October 14, 2021
As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2021. This guide outlines all of the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Guides to Doing Business series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource when planning an international business strategy or researching a new market.
Read More