Hard Title or Soft Title

Apartments, Villas, Flats. No agencies.
User avatar
Username Taken
Raven
Posts: 10370
Joined: Mon May 19, 2014 6:53 pm
Reputation: 1821
Contact:
Cambodia

Hard Title or Soft Title

Post by Username Taken » Thu Nov 05, 2015 10:53 am

A question that's been asked in a few threads recently, 'What is the difference between Hard and Soft title?'
This is what my friend Google found. From the PhnomPenh Post 9 July 2015:
Property ownership can now be secured by one of three forms of Cambodia land title: Hard title, Soft title and Private Ownership in Co-owned Buildings – also known as Strata Title. In addition, a LMAP title is also now available.

1 HARD TITLE:
• Hard title is the strongest form of property ownership in Cambodia and the best Cambodia Land Title.

• Hard titles are an ownership certificate provided by the Land Management and Planning office.

• Hard titles contain detailed information that has been duly recognised and certified at a national level with the Ministry of Land and a cadastral office.

• A Transfer tax of four per cent applies when a hard title transaction occurs.

2 SOFT TITLE:
• Soft title is the most common form of ownership and the most commonly issued Cambodia land title.

• It is a Cambodian land title that is recognised at the local government level.

• Soft titles are provided by the local Sangkat or District office and are not registered at a national level – but are still considered a possessory status.

• The majority of property transactions still occur with soft titles to avoid ownership transfer taxes and fees.

• However, most new major development projects are being transacted with hard titles as these are the most durable Cambodian land title.

3 PRIVATE OWNERSHIP:
• Private Ownership in Co-owned Buildings is the most recent form of ownership and allows foreigners to legally own property in Cambodia.

• This is more commonly known as a Strata Title.

• Strata Title is a less common Cambodian land title, but numbers are growing fast.

• The ‘Law on Foreign Ownership’ was promulgated on 24 May, 2010.

• This law limits foreign ownership to co-owned buildings.

• Co-owned buildings are defined as a building or construction in which several owners reside, consisting of some parts that are the exclusive ownership of each co-owner (private units) and some other parts that are common spaces for the common use of co-owners (common areas).

• For more information of foreign property ownership in Cambodia, check out another useful article on the Realestate.com.kh “news” blog relevant to Cambodia land titles: “Pitfalls for Foreign Property Ownership in Cambodia.”

*LMAP TITLE*:
• A titling system called LMAP (Land Management and Administration Project) has been introduced in Cambodia to improve land tenure security.

• Under the scheme, GPS coordinates are being registered for all land plots in the country.

• If you have an LMAP title already, the borders have been agreed between neighbouring parties so all border disputes have been resolved.

• This is the safest type of title.
Source: http://www.phnompenhpost.com/real-estat ... ce-and-all


Also, some good info here: http://www.sihanoukvillerealestate.com/ ... -title.php

:hattip:
... give 'em a quick, short, sharp shock ...

https://BooksAboutCambodia.com
Fourkinnel
Expatriate
Posts: 725
Joined: Sat May 30, 2015 12:39 pm
Reputation: 59
Tonga

Re: Hard Title or Soft Title

Post by Fourkinnel » Thu Nov 05, 2015 12:46 pm

There is still one advertiser on here offering Hard Title on something that could only be offered as strata title.
Basically you as foreigner cannot own anything on the ground, unless you set up a company. Thailand is or has clamped down on this company option already! When or if they do that here you would need a crystal ball. You can lease the land or/and buildings on land!.
The Condo, (co owned/strata) % ownership in LOS was 51% Thai 49% foreigner. I've asked what it is supposed to be here (reports of same % or 70/30 foreigner/Cambodian or the original, "can own anything above the ground floor") but never got a definitive answer!
User avatar
Username Taken
Raven
Posts: 10370
Joined: Mon May 19, 2014 6:53 pm
Reputation: 1821
Contact:
Cambodia

Re: Hard Title or Soft Title

Post by Username Taken » Thu Nov 05, 2015 1:35 pm

A copy of the Law on ownership for foreigners: Law on Providing Foreigners with Ownership Rights in Private Units of Co-Owned Buildings_100524

The Sub-Decree on the Proportion and Calculation of Percentage of Private Units that Can Be Owned by Foreigners in a Co-owned Building (“Sub-decree on Percentage of Foreign Ownership”) limits foreign ownership rights in private units of co-owned buildings to seventy (70) percent of the total surface size of all private units of the co-owned building. When issuing a certificate of ownership of a private unit to a foreign owner, the Cadastral Authority must write down on the certificate the proportion of the surface size of the private unit to the total surface size of all private units in the building.
Source: http://www.dfdl.com/resources/legal-and ... ership-and

"70% of the total surface size of all private units of the co-owned building", does that mean that 7 out of 10 apartments can be 100% foreign owned?
... give 'em a quick, short, sharp shock ...

https://BooksAboutCambodia.com
Fourkinnel
Expatriate
Posts: 725
Joined: Sat May 30, 2015 12:39 pm
Reputation: 59
Tonga

Re: Hard Title or Soft Title

Post by Fourkinnel » Thu Nov 05, 2015 2:25 pm

If that's the official law paper then yes!
I'm still not certain if you count anything on the ground floor in this though!
CJM555
Expatriate
Posts: 348
Joined: Mon Sep 08, 2014 5:43 am
Reputation: 2

Re: Hard Title or Soft Title

Post by CJM555 » Fri Nov 06, 2015 1:48 pm

Fourkinnel wrote:If that's the official law paper then yes!
I'm still not certain if you count anything on the ground floor in this though!
My reading of the info in the link, in order for a building to be 'co-owned' it would refer to the whole building. Also different categories but not limited to, detached buildings, semi-detached buildings, attached houses etc. Titles are issued to each co-owner with collective rights and responsibilities of the common areas. I can't see how common areas such as stairwells which are an integral part of the building[s] which are co-owned also do not form the surface area of the building.
It does seem confusing between the noted information sub-decree of August 2009 and the subsequent Law on 'Providing Foreigners with Ownership Rights in Private Units of Co-owned Buildings' as stated May 2010.


Does anybody have any further information from the link on the two definitions of Article 4;
Article 4.
The key terms used with specific meaning under this law have the following
definitions:
- Foreigners refers to foreign natural or legal persons having no Khmer
nationality, without any discrimination regarding nationality, belief, religion
or origin.
- Legally qualified foreigners refers to foreign nationals who enjoy legal
capacity according to Cambodian laws and who have legally entered
Cambodia.
Fourkinnel
Expatriate
Posts: 725
Joined: Sat May 30, 2015 12:39 pm
Reputation: 59
Tonga

Re: Hard Title or Soft Title

Post by Fourkinnel » Sat Nov 07, 2015 10:39 am

It is confusing, as is anything translated from Khmer in a legal capacity.
In the UK, in a shared apartment block, the stairwell would be common area too, not on the title papers as owned area. The land the stairwell and common area is on belongs to the landowner but they cannot take this area for themselves, occupy or prohibit use by all co owners.
Here would be much the same I think!
Anchor Moy
Expatriate
Posts: 9506
Joined: Wed May 28, 2014 11:37 pm
Reputation: 1359
Tokelau

Re: Hard Title or Soft Title

Post by Anchor Moy » Sat Nov 07, 2015 7:17 pm

Username Taken wrote:A copy of the Law on ownership for foreigners: Law on Providing Foreigners with Ownership Rights in Private Units of Co-Owned Buildings_100524

The Sub-Decree on the Proportion and Calculation of Percentage of Private Units that Can Be Owned by Foreigners in a Co-owned Building (“Sub-decree on Percentage of Foreign Ownership”) limits foreign ownership rights in private units of co-owned buildings to seventy (70) percent of the total surface size of all private units of the co-owned building. When issuing a certificate of ownership of a private unit to a foreign owner, the Cadastral Authority must write down on the certificate the proportion of the surface size of the private unit to the total surface size of all private units in the building.
Source: http://www.dfdl.com/resources/legal-and ... ership-and

"70% of the total surface size of all private units of the co-owned building", does that mean that 7 out of 10 apartments can be 100% foreign owned?
UT, AFAIK it's the surface area of living space that is counted, so it's not a question of how many units belong to foreigners, but how much of the total living space in the building is under foreign ownership. If you have a block of flats of different sizes, then you add the total surface area that is foreign-owned, and this must not exceed 70% of the total "living space", so stairs and common areas should not count as part of this.

At least, that's my understanding of the present situation on co-owned buildings, but I could be wrong and I'm not a pro, so if anyone has better info, feel free to correct me on this.
Post Reply Previous topicNext topic
  • Similar Topics
    Replies
    Views
    Last post

Who is online

Users browsing this forum: No registered users and 12 guests