What key documents to look for or consider when buying a landed property?

23 November 2022 | Posted in Content Hub

Buying landed property or Borey in Cambodia may seem complicated in the beginning, with much consideration such as the cost, appreciation value, potential profits and more. Here is a list of the 7 key documents you need to have in order to undergo a legitimate project.

1. Development Company Registration
Developers are required to register to gain approval from the involved ministries to legally begin any construction work. Ensuring the developers, you are working with has a legal company registration is a key part of buying a Borey.

2. Construction License
Confirm that the Ministry of Land Management, Urban Planning and Construction has issued a construction license to your developers before signing any agreements, as this signifies that the project is safe and feasible.

With both of these documents provided, there are five more key documentation you need to purchase a residential real estate or Borey in Cambodia.

3. Borey License
The Ministry of Economy and Finance will issue the license when the developer has satisfied the requirements of the Government in terms of quality, design, sales plans, and documentation.

4. Master Plan
The plan is approved by the Ministry of Land Management, Urban Planning and Construction prior to starting any construction work, detailing how the Borey will be built.

5. Hard Title
There are two separate titles, a master title for the entire piece of land that the project will be established on, and a hard title for subdivided residential units in the Borey. Soft titles are only recognized by the local government and is less secure compared to Hard titles. Therefore, a Hard title is the best and safest option when certifying ownership.

6. Sales Purchase Agreement
The sales purchase agreement, SPA, is a document detailing purchase price, whether it includes VAT or not, transfer tax, along with payment terms and payment options, a common one being payment on an installment basis. A sample or draft of the SPA can be requested and allows the buyers to understand the tax obligations and further conditions and penalties in certain cases.

7. Floor Plan and List of Construction Specification
The floor plan is generally one of the first documents shown to the buyer. However, it is important to crosscheck the layout, size of the land and house, and other details in the floor plan and the construction specification with the mock house (in the case of buying off plan). They buyer also needs to ensure that these documents are attached to the SPA, so they are legally binded in the agreement, as in some cases the actual construction may vary to the original floorplan.

When buying landed property or residential property in Cambodia, it is crucial to obtain all the documents mentioned above. We at CBRE Cambodia specialize in real estate development and can act as your agent for finding a residential real estate best suited to your needs!

For further information on residential sales and leasing services, please contact CBRE Cambodia Residential Team via [email protected] or call +855 95 777 133.