When purchasing property, it is crucial to obtain outright ownership and there are particular steps that need to be followed, documents that need to be obtained and specific consultations with relevant parties and departments that need to take place:

 

Step 1

The buyer verifies the title certificate with the Land Office and checks for potential liens (debt) and/or other encumbrances. S/he must obtain a copy of the initial title certificate from the seller and verify that the seller is the rightful owner of the title certificate. This is also verified with the land office to ensure that there are no liens, mortgages, disputes or other 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

Step 2

The Buyer must contact the relevant village chief or commune council official to obtain information on the land and undertake an official search of the title at the municipal land office.

Estimated time: 10 days (simultaneous to steps 1 and 3)
Official cost: Nil

Step 3

Buyer obtains the certificate of incorporation of the seller’s company and other official documents from the seller (e.g. ID of the shareholder, or person acting on behalf of the company, a certified/notarized copy of the certificate as issued by the Ministry of Commerce). These verify the accuracy and identity of the company name appearing on the title certificate. Power of Attorney required and resolution signed by the company’s Board of Directors. This authorises the named individual to represent the company at the land office with a Power of Attorney implementing that Resolution.

Estimated time: 10 days (simultaneous to steps 1 and 2)
Official cost: KHR 80,000/US$20.00

 

Step 4

Apply for registration at the District Land 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 office of the Ministry of Land Management, Urban Planning & Construction (MLMUPC) and arrange to prepare and sign documents. The documentation needed includes the company’s statute, its Certificate of Incorporation, and Power of Attorney (obtained in Step 3). The original Title Certificate is presented to the Khan by the Seller when signing the deed. The new owner’s name can now to be officially added to the document.

Relevant Government Agency: District Land Office, MLMUPC (District Land Office of the Ministry of Land Management, Urban Planning & Construction)
Estimated time: 20 – 30 days
Official cost: Transfer fee of KHR 600,000 paid to MLMUPC

 

Step 5

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)

 

Step 6

After paying all 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

 

Step 7

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

 

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