Contract for buying Land (Hard Title)
Contract for buying Land (Hard Title)
I want to make a contract at the Sangkat for buying land with a Hard Title.
The contract should include that I will pay lets say 1000 USD initial payment und than monthly rates of 100 USD per month until the total payment sum of 2000 USD is paid. After full payment the land title shall be transfered to me.
The seller have the hard title right now inside the bank, meaning there is no way to issue any "block" on the hard title. The seller only can get it out by the bank after I paid all. Therefore the main part of my monthly payments go to the bank.
My big question is: I am 99% safe with a contract like this signed and wittnessed by the local sangkat or they still can screw me over (without getting criminals)?
The contract should include that I will pay lets say 1000 USD initial payment und than monthly rates of 100 USD per month until the total payment sum of 2000 USD is paid. After full payment the land title shall be transfered to me.
The seller have the hard title right now inside the bank, meaning there is no way to issue any "block" on the hard title. The seller only can get it out by the bank after I paid all. Therefore the main part of my monthly payments go to the bank.
My big question is: I am 99% safe with a contract like this signed and wittnessed by the local sangkat or they still can screw me over (without getting criminals)?
Re: Contract for buying Land (Hard Title)
This has sorry ending written all over it...
Please use a reputable real estate agent or lawyer to advise and assist you with this...especially if you are a foreigner, as foreigners aren't legally permitted to purchase or own land so there are additional steps to be taken.
Please use a reputable real estate agent or lawyer to advise and assist you with this...especially if you are a foreigner, as foreigners aren't legally permitted to purchase or own land so there are additional steps to be taken.
Re: Contract for buying Land (Hard Title)
my cambodian wife will be inside the contract and not me as a foreigner
Re: Contract for buying Land (Hard Title)
Then just pay the $2000 and get the deal done
I'm standing up, so I must be straight.
What's a poor man do when the blues keep following him around.(Smoking Dynamite)
What's a poor man do when the blues keep following him around.(Smoking Dynamite)
Re: Contract for buying Land (Hard Title)
I think the OP may have just been using the figure of $2000 as an example, at least I hope he was.
If a significantly priced property, the below is why I recommend using a reputable real estate agent to advise and assist. Be wary of making any contracts with the Sangkat chief directly when it comes to purchasing property, especially Hard Titled property, I have seen many people get burnt badly and lose everything.
The steps to transfer a hard title in Cambodia
1. Due Diligence and Verify the Title Certificate
This step helps to verify two things, firstly that the seller is indeed the owner of the property and possesses clear title. The buyer will obtain the original title certificate from the seller and take it to the Ministry of Land Management, Urban Planning and Construction (MLMUPC or the “Land Office”). The process takes a few days.
The Land Office will inform the buyer if there are any liens (debts), mortgages (hypothecs), block notices, or other claims against the property.
With regards to liens and mortgages, these are usually liquidated at the point of sale. In other words, the purchase price paid to the seller will be used to pay off any liens or mortgages. In the event of any claims against the property e.g. legal disputes of ownership, this can be something that will hinder the sale from going through. Be careful about heritage and legacy issues. You do not want to get involved in the seller’s family, business, or other legal disputes!
2. Obtain Information on the Property
In this step, the buyer approaches the local Khan (village) or Sangkat (Commune) Office to conduct an official search of the title to find all local records related to the property. This step will reveal any rental or lease situations.
This step might uncover any local disputes regarding the property, any confusion, or local disputes regarding the demarcation of the property or construction. In case the bad news is uncovered at this stage, you should work with the seller, and a lawyer, to resolve any problems before going through with the transaction, i.e., discussing solutions with the tenant or other parties.
This step may be completed within a day.
IMPORTANT: To save time in the title transfer process, Steps 1, and 2 should be undertaken simultaneously.
3. Obtain Information about the Seller
You must identify the person or the entity that you are purchasing the property from. If you are purchasing the property from a person, you need a copy of their identity document. If you are purchasing the property from a company, you need information about the company such as their Certificate of Incorporation issued by the Ministry of Commerce. Also, when purchasing a property from a company, you will usually deal with a representative of that company. The representative must prove that they are the legal representative of the company in the form of a special power of attorney, which is a resolution by the Board of Directors authorizing the named individual to act on their behalf before the MLMUPC.
• If buyer/ seller is a company, then a shareholder resolution and three (3) certified copies of the ID card of the authorized representative (Khmer national) are required. Any foreign shareholders must provide three (3) certified copies of their passports.
• If the buyer/ seller is an individual then three (3) certified copies of the ID card are required.
• If the buyer/ seller is an individual foreigner with Cambodian citizenship, then (3) certified copies of the ID card and a certified copy of the Royal Decree granting citizenship are required. (source)
This step can be done at the time of signing a deposit agreement.
4. Apply for Registration at the District Land Office of the MLMUPC
After completing Steps 1 – 3, the buyer and seller must go together to the District Land Office to arrange, prepare, and sign the relevant documents.
The buyer and seller sign a Vente Definite and official transfer document: deed to have the buyer’s name inserted onto the Title Certificate and register it. If the seller is a married individual, then you’ll need permission from his/her spouse as well.
5. Pay Transfer Tax
A transfer tax of approximately 4% of the total value of the property must now be paid to the Ministry of Economy and Finance at the General Department of Taxation before the title can be transferred. This step is completed at the General Department of Taxation in the district where the property is located. A tax receipt is issued as proof that the transfer tax is paid.
This step should take no longer than 1 day to complete.
If you are purchasing a property in Phnom Penh, be aware that transfer tax is not assessed on the transacted value of the property but rather on a schedule of the price of the property as determined by the Phnom Penh Municipality. This valuation is based on the size of the property, its location, use, potential use, and other variables. As a result, the transfer tax rate in Phnom Penh is typically higher than in other provinces.
6. Return to the District Land Office of the MLMUPC
After the relevant taxes are paid, the buyer and seller return to the cadastral office at the District Land Office of the MLMUPC to sign, and thumbprint, the relevant form for buying/selling real property as filled in by the MLMUPC official based on the information provided in the prior steps. The signing and thumbprints are witnessed by a local authority such as the commune chief who will also sign and thumbprint the document.
7. Obtaining the Certificate of Title from the Municipal Land Office
Finally, with this step, you will complete the transfer of title. After the Khan or District Land Office has forwarded all the transfer documents (all the documents described in the above steps) to the Municipal Land Office, the Municipal Land Offices issues the final Certificate of Title in the new owner’s name. The property is now registered in your name and the title has been transferred.
The whole transfer process should take 3-6 months.
If a significantly priced property, the below is why I recommend using a reputable real estate agent to advise and assist. Be wary of making any contracts with the Sangkat chief directly when it comes to purchasing property, especially Hard Titled property, I have seen many people get burnt badly and lose everything.
The steps to transfer a hard title in Cambodia
1. Due Diligence and Verify the Title Certificate
This step helps to verify two things, firstly that the seller is indeed the owner of the property and possesses clear title. The buyer will obtain the original title certificate from the seller and take it to the Ministry of Land Management, Urban Planning and Construction (MLMUPC or the “Land Office”). The process takes a few days.
The Land Office will inform the buyer if there are any liens (debts), mortgages (hypothecs), block notices, or other claims against the property.
With regards to liens and mortgages, these are usually liquidated at the point of sale. In other words, the purchase price paid to the seller will be used to pay off any liens or mortgages. In the event of any claims against the property e.g. legal disputes of ownership, this can be something that will hinder the sale from going through. Be careful about heritage and legacy issues. You do not want to get involved in the seller’s family, business, or other legal disputes!
2. Obtain Information on the Property
In this step, the buyer approaches the local Khan (village) or Sangkat (Commune) Office to conduct an official search of the title to find all local records related to the property. This step will reveal any rental or lease situations.
This step might uncover any local disputes regarding the property, any confusion, or local disputes regarding the demarcation of the property or construction. In case the bad news is uncovered at this stage, you should work with the seller, and a lawyer, to resolve any problems before going through with the transaction, i.e., discussing solutions with the tenant or other parties.
This step may be completed within a day.
IMPORTANT: To save time in the title transfer process, Steps 1, and 2 should be undertaken simultaneously.
3. Obtain Information about the Seller
You must identify the person or the entity that you are purchasing the property from. If you are purchasing the property from a person, you need a copy of their identity document. If you are purchasing the property from a company, you need information about the company such as their Certificate of Incorporation issued by the Ministry of Commerce. Also, when purchasing a property from a company, you will usually deal with a representative of that company. The representative must prove that they are the legal representative of the company in the form of a special power of attorney, which is a resolution by the Board of Directors authorizing the named individual to act on their behalf before the MLMUPC.
• If buyer/ seller is a company, then a shareholder resolution and three (3) certified copies of the ID card of the authorized representative (Khmer national) are required. Any foreign shareholders must provide three (3) certified copies of their passports.
• If the buyer/ seller is an individual then three (3) certified copies of the ID card are required.
• If the buyer/ seller is an individual foreigner with Cambodian citizenship, then (3) certified copies of the ID card and a certified copy of the Royal Decree granting citizenship are required. (source)
This step can be done at the time of signing a deposit agreement.
4. Apply for Registration at the District Land Office of the MLMUPC
After completing Steps 1 – 3, the buyer and seller must go together to the District Land Office to arrange, prepare, and sign the relevant documents.
The buyer and seller sign a Vente Definite and official transfer document: deed to have the buyer’s name inserted onto the Title Certificate and register it. If the seller is a married individual, then you’ll need permission from his/her spouse as well.
5. Pay Transfer Tax
A transfer tax of approximately 4% of the total value of the property must now be paid to the Ministry of Economy and Finance at the General Department of Taxation before the title can be transferred. This step is completed at the General Department of Taxation in the district where the property is located. A tax receipt is issued as proof that the transfer tax is paid.
This step should take no longer than 1 day to complete.
If you are purchasing a property in Phnom Penh, be aware that transfer tax is not assessed on the transacted value of the property but rather on a schedule of the price of the property as determined by the Phnom Penh Municipality. This valuation is based on the size of the property, its location, use, potential use, and other variables. As a result, the transfer tax rate in Phnom Penh is typically higher than in other provinces.
6. Return to the District Land Office of the MLMUPC
After the relevant taxes are paid, the buyer and seller return to the cadastral office at the District Land Office of the MLMUPC to sign, and thumbprint, the relevant form for buying/selling real property as filled in by the MLMUPC official based on the information provided in the prior steps. The signing and thumbprints are witnessed by a local authority such as the commune chief who will also sign and thumbprint the document.
7. Obtaining the Certificate of Title from the Municipal Land Office
Finally, with this step, you will complete the transfer of title. After the Khan or District Land Office has forwarded all the transfer documents (all the documents described in the above steps) to the Municipal Land Office, the Municipal Land Offices issues the final Certificate of Title in the new owner’s name. The property is now registered in your name and the title has been transferred.
The whole transfer process should take 3-6 months.
Re: Contract for buying Land (Hard Title)
Yes.
Meum est propositum in taberna mori,
ut sint Guinness proxima morientis ori.
tunc cantabunt letius angelorum chori:
"Sit Deus propitius huic potatori."
ut sint Guinness proxima morientis ori.
tunc cantabunt letius angelorum chori:
"Sit Deus propitius huic potatori."
Re: Contract for buying Land (Hard Title)
the land will be "only" around 20.000 so I guess a lawyer would be to expensive in this case.
What if I (synonym for my wife) make a contract with the seller about buying the land and transfer the title in future and additional I make a contract with the seller that I lease the land (until the ownership is not transfered) for 1 USD per year for 50 years?
Could it be possible that contracts regarding the sale of immovable property can be registered at the cadastral office? cause the law states so..
Also the law states that a person whose immovable property is subject of seizure can't sell the land. That the land title is with the bank is such a seizure?
Cause you could evaluate "seizure" as "seizure itself" or "in the meaning of deposit". This would maybe lead to an null and void sale contract.
So I think it would be maybe an good idea to create a lease contract, where I
- pay 4000 USD to lease the land for 50 years upfront
- the land cannot be sold during the lease
- get the exclusive right to buy the land for additional 16.000 USD during the duration of the lease
- with clarificatoin that this means the land can only be sold to me or with my agreement to someone else
Your thoughts except from go to a lawyer?
What if I (synonym for my wife) make a contract with the seller about buying the land and transfer the title in future and additional I make a contract with the seller that I lease the land (until the ownership is not transfered) for 1 USD per year for 50 years?
Could it be possible that contracts regarding the sale of immovable property can be registered at the cadastral office? cause the law states so..
Also the law states that a person whose immovable property is subject of seizure can't sell the land. That the land title is with the bank is such a seizure?
Cause you could evaluate "seizure" as "seizure itself" or "in the meaning of deposit". This would maybe lead to an null and void sale contract.
So I think it would be maybe an good idea to create a lease contract, where I
- pay 4000 USD to lease the land for 50 years upfront
- the land cannot be sold during the lease
- get the exclusive right to buy the land for additional 16.000 USD during the duration of the lease
- with clarificatoin that this means the land can only be sold to me or with my agreement to someone else
Your thoughts except from go to a lawyer?
Re: Contract for buying Land (Hard Title)
Yes that all sounds hunky dory.
Whatever is the correct way to do it you need a reputable lawyer. Not because they can draw up contracts and make it look all pretty but if something does go tits up you’ll have to use them to get stuff done and if they don’t have any clout or influence then it’ll be a shrug of the shoulders and “No habe”.
There are contracts around that I’ve seen that foreigners have drawn up but they’re either clued up, wealthy or have family that are influential, or a mix of all three.
At the end of the day unless you have rock solid contracts and some cash to pay for any unforeseen future issues you’ve got no hope, no even taking into account your future relationship with your wife/partner.
Whatever is the correct way to do it you need a reputable lawyer. Not because they can draw up contracts and make it look all pretty but if something does go tits up you’ll have to use them to get stuff done and if they don’t have any clout or influence then it’ll be a shrug of the shoulders and “No habe”.
There are contracts around that I’ve seen that foreigners have drawn up but they’re either clued up, wealthy or have family that are influential, or a mix of all three.
At the end of the day unless you have rock solid contracts and some cash to pay for any unforeseen future issues you’ve got no hope, no even taking into account your future relationship with your wife/partner.
People of the world, spice up your life.
Re: Contract for buying Land (Hard Title)
What if the vendor does not pay down the loan and leaves the title in hock with the bank?What if I (synonym for my wife) make a contract with the seller about buying the land and transfer the title in future and additional I make a contract with the seller that I lease the land (until the ownership is not transfered) for 1 USD per year for 50 years?
Re: Contract for buying Land (Hard Title)
You don't necessarily require a lawyer, a reputable real estate agency will be able to advise and assist you, for a fee of course.
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