Procedure for buying land, with hard title

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Tarndog
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Procedure for buying land, with hard title

Post by Tarndog »

I'm considering buying some land, and am wondering what I should expect the process to be like. Does it involve a multitude of trips to the ministry of land management, and many documents? How to know if what you're getting is hard title or not? What documentation is necessary?

And of course, what are good methods for buying as an individual, knowing I can only be 49%. Can the 51% be divided up between 3 or 4 Khmer? Is age a factor? Wondering if I can make my Cambodian daughter the owner of the 51%, even though she's only 1 year old.
Element6
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Re: Procedure for buying land, with hard title

Post by Element6 »

My understanding is that a person under the age of 18 cannot own land, so you couldn't put it in your daughters name. That is not to say this has never happened, just that it shouldn't and there is a risk involved if you do.

Likewise I dont think a foreigner can have their name on a hard title document. Similar statement to above where it may have happened but there is a risk when done like this (I have only ever heard of foreigners getting their name in soft titles)

The 49%:51% split you allude to is usually done in a land holding company as a structure to allow foreigners to own land as a Khmer majority owned entity can own land. The 51% can be split across multiple people and usually documents are prepared in advance to transfer their company shares to another party in case they start getting difficult.
Tarndog
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Re: Procedure for buying land, with hard title

Post by Tarndog »

Element6 wrote: Thu Nov 14, 2019 10:02 pm
The 49%:51% split you allude to is usually done in a land holding company as a structure to allow foreigners to own land as a Khmer majority owned entity can own land. The 51% can be split across multiple people and usually documents are prepared in advance to transfer their company shares to another party in case they start getting difficult.
Thanks for the reply. Are you familiar with the land holding company rules/process?
samrong01
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Re: Procedure for buying land, with hard title

Post by samrong01 »

Buying land for a foreigner in Cambodia is fraught with peril. Most importantly - verify that the land actually has a hard title before making any commitment. Many sellers will claim to have a hard title when they do not. A hard title is a legal document which contains a diagram of the location of the land. If the seller can not produce such a document then he does not have hard title.

There are various methods for a foreigner to hold land including lease back, mortgage, and holding company. All methods involve trusting a Khmer person. If you do not have such a person who you can trust absolutely then do not do it. For a foreigner, getting a lawyer is essential but finding one who can be trusted is not so easy. All contracts will be in Khmer so if you can not read Khmer then you take a big risk in signing documents that you do not know the contents of.

The land office are not helpful so its best to have a lawyer to go there for you.
Tarndog
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Re: Procedure for buying land, with hard title

Post by Tarndog »

samrong01 wrote: Fri Nov 15, 2019 3:14 am Buying land for a foreigner in Cambodia is fraught with peril. Most importantly - verify that the land actually has a hard title before making any commitment. Many sellers will claim to have a hard title when they do not. A hard title is a legal document which contains a diagram of the location of the land. If the seller can not produce such a document then he does not have hard title.

There are various methods for a foreigner to hold land including lease back, mortgage, and holding company. All methods involve trusting a Khmer person. If you do not have such a person who you can trust absolutely then do not do it. For a foreigner, getting a lawyer is essential but finding one who can be trusted is not so easy. All contracts will be in Khmer so if you can not read Khmer then you take a big risk in signing documents that you do not know the contents of.

The land office are not helpful so its best to have a lawyer to go there for you.
Quite discouraging. May have to forego my plans.
Mishmash
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Re: Procedure for buying land, with hard title

Post by Mishmash »

Do not be discouraged.

Good lawyers can help.

Sciaroni & Associates are reputable, though I don't know their fee structure.

In addition, the major real estate companies here can provide advice.
samrong01
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Re: Procedure for buying land, with hard title

Post by samrong01 »

I dont mean to totally discourage you - only that you should be very very careful. Believe nothing - verify everything. When I bought my first house I had assurances that it had a hard title only to find at the end that it only had a land office receipt as the government had a plan to build a road through it.
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