What is the legality of commercial leases in Cambodia?

kgbagent · Post by **kgbagent** » Wed Mar 10, 2021 12:42 pm

Two guys I know took out a 3 year lease on a restaurant and resort and paid a $6k deposit.

One year on they have had an offer at another place and intend taking it.

The original owner was a foreigner and he, a few months ago, sold the resort to a Khmer doctor. The Khmer guy got them to sign a document about the lease still existing on the original terms.

The guys I know intend to just leave and think that they will lose just their deposit and thats that. However I thought the deposit was to cover damage to the property. Seeing as the monthly rental for the next 2 years would be worth $36k to the new owner surely he could sue for non-payment of the monthly rent?

If all they lose is the deposit then leases seem somewhat worthless.

Thoughts???

Doc67 · Post by **Doc67** » Wed Mar 10, 2021 1:19 pm

In any normal country the lease is enforceable and any losses by the Landlord for abandonment of the premises and loss of rent and costs would all be recoverable. The landlord would be under an obligation to mitigate their losses and cannot 'sit in the sun' while their losses mount up.

Here, it seems, the deposit is one month per year and if you abandon the property you forfeit the deposit in full. That appears to be the end of the matter. I doubt many people want to sue in these courts, especially if there is no money to recover. I haven't heard of anyone being chased for the losses. I have heard of one property in a nice location where the new tenant was obliged to pay the arrears (or at least a large part of them) of the previous tenant, thus making the landlord whole. Those were the terms demanded or they could not have a lease without agreement. How's that for a ballsy demand!

Hope this helps, but I doubt it does.

kgbagent · Post by **kgbagent** » Wed Mar 10, 2021 1:43 pm

Doc67 wrote: ↑Wed Mar 10, 2021 1:19 pm In any normal country the lease is enforceable and any losses by the Landlord for abandonment of the premises and loss of rent and costs would all be recoverable. The landlord would be under an obligation to mitigate their losses and cannot 'sit in the sun' while their losses mount up.

Here, it seems, the deposit is one month per year and if you abandon the property you forfeit the deposit in full. That appears to be the end of the matter. I doubt many people want to sue in these courts, especially if there is no money to recover. I haven't heard of anyone being chased for the losses. I have heard of one property in a nice location where the new tenant was obliged to pay the arrears (or at least a large part of them) of the previous tenant, thus making the landlord whole. Those were the terms demanded or they could not have a lease without agreement. How's that for a ballsy demand!

Hope this helps, but I doubt it does.

My concern is that the wealthy Khmer may well sue them for loss of income. They dont have any money so it would be blood from a stone but maybe they could have their work visas revoked.

Element6 · Post by **Element6** » Wed Mar 10, 2021 1:58 pm

you need to see the lease contract.

In the absence of a clause stipulating what will happen if the leasee abandons the lease then the usual approach is that the deposit is lost. However if there is more specific wording in the contract outlining the obligations of the leasee and leasor then you would be accountable to these clauses and could be pursued in court

In the former situation the leasee also has no protection if the leasor decides to kick them out and sell the property or lease to another party for a higher price, so depending on the seriousness of both parties in the beginning you will usually find the corresponding lease situation

truffledog · Post by **truffledog** » Wed Mar 10, 2021 2:03 pm

what about getting shot for not respecting what you signed? Could happen if you piss off the wrong guy.

armchairlawyer · Post by **armchairlawyer** » Wed Mar 10, 2021 2:05 pm

The answer depends on the terms of the 3 year lease and whether there is a break clause. If not, the tenants had better get looking for a new tenant to take it over.

canucklhead · Post by **canucklhead** » Wed Mar 10, 2021 2:47 pm

If they didnt sign a new lease with the new owner then I dont think its valid anymore. If they walk away from the deposit I doubt anything will happen. Then again...Im not a lawyer.
Why dont your friends consult a lawyer?

kgbagent · Post by **kgbagent** » Wed Mar 10, 2021 3:02 pm

canucklhead wrote: ↑Wed Mar 10, 2021 2:47 pm If they didnt sign a new lease with the new owner then I dont think its valid anymore. If they walk away from the deposit I doubt anything will happen. Then again...Im not a lawyer.
Why dont your friends consult a lawyer?

Because they are French

Doc67 · Post by **Doc67** » Wed Mar 10, 2021 3:52 pm

armchairlawyer wrote: ↑Wed Mar 10, 2021 2:05 pm The answer depends on the terms of the 3 year lease and whether there is a break clause. If not, the tenants had better get looking for a new tenant to take it over.

In the UK it's an easy question: Show me the lease!

I did say my answer was likely to be of little help (as usual)

samrong01 · Post by **samrong01** » Thu Mar 11, 2021 8:41 pm

Strictly speaking the owner could sue for the balance of the lease but that seldom happens because owners could usually quickly get another tenant so not worth the risk and expense of resorting to law. With coronavirus hysteria however its not easy to find tenants so the situation may be different. If the former tenants intend to disappear then there should be no problem for them. If they can be found they will need a lawyer when they receive a summons. If no summons - no need for lawyer.

What is the legality of commercial leases in Cambodia?

What is the legality of commercial leases in Cambodia?

Re: What is the legality of commercial leases in Cambodia?

Re: What is the legality of commercial leases in Cambodia?

Re: What is the legality of commercial leases in Cambodia?

Re: What is the legality of commercial leases in Cambodia?

Re: What is the legality of commercial leases in Cambodia?

Re: What is the legality of commercial leases in Cambodia?

Re: What is the legality of commercial leases in Cambodia?

Re: What is the legality of commercial leases in Cambodia?

Re: What is the legality of commercial leases in Cambodia?

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