Buy soft-title apartment in PP
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- Tourist
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Buy soft-title apartment in PP
Hi everyone, I’ve been reading CEO for a while, but never posting.
I have a question. I would like to buy the apartment I’ve been living in for a few years, but it’s a soft-title situation. It’s in downtown PP near the royal palace.
From other threads I understand that it used to be legal for foreigners to buy soft-title, but they changed that and it’s not possible anymore. So my question, is that really so and is there any way around this, that doesn’t involve wives or girlfriends?
I’m thinking if it is still legal for foreigners to own soft-title (if purchased before the change in the law) then there might potentially be a back door somewhere. I would be grateful for any info and ideas.
I have a question. I would like to buy the apartment I’ve been living in for a few years, but it’s a soft-title situation. It’s in downtown PP near the royal palace.
From other threads I understand that it used to be legal for foreigners to buy soft-title, but they changed that and it’s not possible anymore. So my question, is that really so and is there any way around this, that doesn’t involve wives or girlfriends?
I’m thinking if it is still legal for foreigners to own soft-title (if purchased before the change in the law) then there might potentially be a back door somewhere. I would be grateful for any info and ideas.
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- Expatriate
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Re: Buy soft-title apartment in PP
Imho i think there arr 2 options
1. Its a nominee company ownership were u need to trust a local. ( I would not do this or recommend) and besides that it doesn’t seem fully legal.
2. I think u can simply leasehold the property for 50 years from the owner with a 25 years mandatory extension. A professional lawyer knows exactly how to do this., including u have the right to sell ur lease, including what happens in case of death, including a inserted given fine amount of 500,000 usd in case owner doesn’t grant u the 25 years extension after the first 50 years.
1. Its a nominee company ownership were u need to trust a local. ( I would not do this or recommend) and besides that it doesn’t seem fully legal.
2. I think u can simply leasehold the property for 50 years from the owner with a 25 years mandatory extension. A professional lawyer knows exactly how to do this., including u have the right to sell ur lease, including what happens in case of death, including a inserted given fine amount of 500,000 usd in case owner doesn’t grant u the 25 years extension after the first 50 years.
- timmydownawell
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Re: Buy soft-title apartment in PP
courtesy of an agent website:rabbit_ear wrote: ↑Sat Apr 03, 2021 3:13 pm From other threads I understand that it used to be legal for foreigners to buy soft-title, but they changed that and it’s not possible anymore. So my question, is that really so and is there any way around this, that doesn’t involve wives or girlfriends?
Nominee Structure
The majority of properties purchased by foreigners in Cambodia use what’s known as a “nominee structure”. At IPS Cambodia, approximately 90% of all our foreign clients choose this structure as it’s cheap, secure and fast, especially when compared to alternative options such as a LHC. Often we have clients who have a Khmer partner or colleague who they put forward as a nominee, however if they don’t, there are a range of options available to source a nominee for the property for the duration of your ownership. Having a nominee hold a property in their name on behalf of a foreigner definitely carries some risk which is why IPS highly recommend using “nominee security agreements” in order to mitigate the risk of having your property held in a third party’s name. These security agreements are directly between the foreign buyer and the nominee and as a general rule, there are 4 types of security agreements available:
Mortgage Agreement
Loan Agreement
Lease Agreement
Security Agreement
The mortgage agreement is registered at the applicable government office and prevents any title transfer without your permission. Once these documents are in place the nominee can’t sell, transfer, move or do anything with the title without your expressed permission. When set up properly, this structure is a very strong and inexpensive form of property security for foreign owners. Another benefit of using a nominee structure is that there are no requirements for monthly/quarterly tax statements and more importantly, this structure does not attract any profit taxes.
You must walk in traffic to cross the road - Cambodian proverb
Re: Buy soft-title apartment in PP
So the answer is no I guess. I step forward to volunteer as a nominee.
- truffledog
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Re: Buy soft-title apartment in PP
Sure most landlords are going to sign such a conditionStrawberryshake wrote: ↑Sat Apr 03, 2021 3:48 pm including a inserted given fine amount of 500,000 usd in case owner doesn’t grant u the 25 years extension after the first 50 years.
work is for people who cant find truffles
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Re: Buy soft-title apartment in PP
Imho locals will sign any legal document drafted by ur lawyer if the payment you give them is what they want to receive.truffledog wrote: ↑Sat Apr 03, 2021 5:30 pmSure most landlords are going to sign such a conditionStrawberryshake wrote: ↑Sat Apr 03, 2021 3:48 pm including a inserted given fine amount of 500,000 usd in case owner doesn’t grant u the 25 years extension after the first 50 years.
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Re: Buy soft-title apartment in PP
timmydownawell wrote: ↑Sat Apr 03, 2021 4:01 pmcourtesy of an agent website:rabbit_ear wrote: ↑Sat Apr 03, 2021 3:13 pm From other threads I understand that it used to be legal for foreigners to buy soft-title, but they changed that and it’s not possible anymore. So my question, is that really so and is there any way around this, that doesn’t involve wives or girlfriends?
Nominee Structure
The majority of properties purchased by foreigners in Cambodia use what’s known as a “nominee structure”. At IPS Cambodia, approximately 90% of all our foreign clients choose this structure as it’s cheap, secure and fast, especially when compared to alternative options such as a LHC. Often we have clients who have a Khmer partner or colleague who they put forward as a nominee, however if they don’t, there are a range of options available to source a nominee for the property for the duration of your ownership. Having a nominee hold a property in their name on behalf of a foreigner definitely carries some risk which is why IPS highly recommend using “nominee security agreements” in order to mitigate the risk of having your property held in a third party’s name. These security agreements are directly between the foreign buyer and the nominee and as a general rule, there are 4 types of security agreements available:
Mortgage Agreement
Loan Agreement
Lease Agreement
Security Agreement
The mortgage agreement is registered at the applicable government office and prevents any title transfer without your permission. Once these documents are in place the nominee can’t sell, transfer, move or do anything with the title without your expressed permission. When set up properly, this structure is a very strong and inexpensive form of property security for foreign owners. Another benefit of using a nominee structure is that there are no requirements for monthly/quarterly tax statements and more importantly, this structure does not attract any profit taxes.
Again why not the 50 + 25 years leasehold it seems much more secure then a nominee structure with trusting strangers.
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Re: Buy soft-title apartment in PP
I would go ask the sangkat office if they would go for it. But I think Soft title in Phnom Penh also requires the Khan. Of course, they can also lie to you now and say you can do it, then when you want to sell it they screw you over.rabbit_ear wrote: ↑Sat Apr 03, 2021 3:13 pm Hi everyone, I’ve been reading CEO for a while, but never posting.
I have a question. I would like to buy the apartment I’ve been living in for a few years, but it’s a soft-title situation. It’s in downtown PP near the royal palace.
From other threads I understand that it used to be legal for foreigners to buy soft-title, but they changed that and it’s not possible anymore. So my question, is that really so and is there any way around this, that doesn’t involve wives or girlfriends?
I’m thinking if it is still legal for foreigners to own soft-title (if purchased before the change in the law) then there might potentially be a back door somewhere. I would be grateful for any info and ideas.
I think you can also open a business in Cambodia and own it as a business. But then I believe you would have to pay taxes on the company.
- Bitte_Kein_Lexus
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Re: Buy soft-title apartment in PP
I bought two different properties in my name several years ago. One I sold a few years back to another foreigner, and one I sold fairly recently to locals. Many soft titles don't go all the way to the Kahn, so it's you're responsibility to either negotiate that in the purchase, or do it yourself after buying.
It's now possible to get a hard title on first floors as well as ground floor. However, as a foreigner I'd suggest you now take a different route. It worked fine for me, but the whole strata thing obviously is nebulous so perhaps best to go the "company" route.
It's now possible to get a hard title on first floors as well as ground floor. However, as a foreigner I'd suggest you now take a different route. It worked fine for me, but the whole strata thing obviously is nebulous so perhaps best to go the "company" route.
Ex Bitteeinbit/LexusSchmexus
Re: Buy soft-title apartment in PP
As you can see from the above postings there are many ways to "own" or at least control a property. All of these ways involve trusting a Khmer person which may appear reasonable at the time but you never know what may happen in future. If you are talking about soft title then what are you really getting for your money? Long term lease may sound good but really its just paying rent in advance - how could you sell such a lease? Also consider what may happen in the event of your death.
Since you are already renting the apartment why not continue to do so? Keep your money in the bank or whereever and use it to make money to cover the rent and possibly more. You will also have the flexibility to change residence in future and if anything happens to the soft title or the building in general its not your problem.
Since you are already renting the apartment why not continue to do so? Keep your money in the bank or whereever and use it to make money to cover the rent and possibly more. You will also have the flexibility to change residence in future and if anything happens to the soft title or the building in general its not your problem.
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