Double Check Your Titles if Buying Condos in Phnom Penh

[CEOCambodiaNews]

PHNOM PENH (Khmer Times) – Condominium sales have surged in the four years since legislators changed Cambodia’s property laws to allow foreigners to acquire full ownership of property in buildings, provided it is above the ground floor.

The change in ownership regulations has fueled the dizzying development of upscale condo projects in Phnom Penh such as De Castle Royal, D.I. Riviera, Casa Meridian, Diamond One, The Bridge and Galaxy Residence. Foreigners have purchased more than 1,300 condominium units since the legislation was passed in 2010, according to the Ministry of Land Management, Urban Planning and Construction.

However, as Cambodia’s condominium market is still at an early stage, realtors are urging prospective buyers, particularly foreigners, to be aware of ownership issues concerning property titles.

David Kim, director of Informax real estate agency, said the master hard title of a condominium project can only be separated into individual unit titles once the project nears completion. As such, most buyers who purchase condominium units off-plan only have soft titles, and some may only have a sale and purchase agreement as proof of ownership.

Neither are fully recognized by the law, warns Mr. Kim, though some banks may accept soft titles as collateral on mortgages.

“Most buyers only check whether the condo design and furniture are nice or not,” said Mr. Kim. “But if you fail to check the ownership procedure, even if the design is nice, it doesn’t belong to you.”

Confusion often stems from the fact that the terms ‘soft’ and ‘hard’ title do not exist in Cambodian law. A hard title commonly refers to an ownership certificate issued by the Cadastral Office and recognized by both national and municipal authorities. Soft titles, by contrast, are registered and recognized only at the local or district level.

Mr. Kim explains that with a hard title, the buyer is recognized by law as the legal owner of the unit and a shareholder of the land it is built on. Owners of registered hard titles retain this right even if the building is sold or demolished. In the case that a new building is developed on the land in its place, the owner can claim his or her ownership on part of the new building.

“A soft title can’t guarantee this,” he added.

But while a soft title does not fully recognize an individual’s legal right to ownership, it is an important step toward securing definitive ownership.

According to Barry John, founder of South East Asia Property Services (SEAPS), the majority of property in Cambodia is not registered at the national level and is held under soft title. This is partially due to the Kingdom’s administrative limitations, but also because many property owners want to circumvent the variety of costs associated with registration when transferring a hard title to a new owner.

“A soft title allows for an immediate transfer of ownership; it is quick and easy,” he explains. “After that I advise my clients to.....

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[ali baba]

Another article about hard and soft titles;
http://www.phnompenhpost.com/real-estat ... soft-title

I used IPS for due diligence. They were prompt and efficient.
http://www.ips-cambodia.com
083 65 6666
#182, St 63, BKK1 (corner of st. 294)

Sok Siphana in Toul Kork is cheaper but they were reluctant to do any work when I contacted them.
023 999 878
012 666 499
#45 St 335z, BK1

[iluvu]

I had a problem with a lady who wouldn't even sign over a hard title even if I paid for it. So I didn't bother and got a place elsewhere. She must've used her house as collateral or something, didn't really care.

[ali baba]

How easy is it for a barang to put their name on the title?
I'm currently looking for a house and IPS told me I couldn't put my name on the title unless I set up a business and used its name and this would require me to pay various taxes. IPS's solution is to have my wife sign a mortgage agreement with me that bans her from selling the house without my permission and a 50 year lease that also allows me to block the sale.

Are they just telling me this to pad their paperwork and pay packet?
Note: This is for an entire building and land.

[PSD-Kiwi]

How easy is it for a barang to put their name on the title?
I'm currently looking for a house and IPS told me I couldn't put my name on the title unless I set up a business and used its name and this would require me to pay various taxes. IPS's solution is to have my wife sign a mortgage agreement with me that bans her from selling the house without my permission and a 50 year lease that also allows me to block the sale.

Are they just telling me this to pad their paperwork and pay packet?
Note: This is for an entire building and land.

The information IPS have given you is correct.

[StroppyChops]

You're married, AB?

[ali baba]

You're married, AB?

Currently engaged to be married and I've been living with my partner long enough for her to qualify as a common law wife. Also I wasn't sure how to type "fiancé" on a keyboard.

Buying a house in Cambodia is a lot less romantic then I ever imagined. I was looking forward to writing our names side-by-side on the title but that is impossible.

[StroppyChops]

Congratulations to you both.

[blockhead]

No rule of law, no title is worth anything.