Cambodia Business

The first step is the planning and funding state and there are a number of things that you need to consider when buying property in Cambodia. These things include:

Buying a property is a large investment and most people will need to have a loan or a mortgage to pay for it. Therefore, it’s important to consider how much you can afford when funding a property purchase and this includes how much you intend to fund yourself and how much you intend to fund with a mortgage or a loan. Moreover, you need to think about additional costs of purchasing the property itself including registration costs, title transfer, legal fees and other fees.

After you have considered the amount that you can afford to spend on a new property, you need to collect some more information and start looking for properties that are suitable for your requirements.

The first thing that you should consider is the type of property that you’re after. This could include a flat, villa, land, condo, etc. Secondly, you need to consider the purpose of the property. Are you buying it to live in, be it an investment or will it be a second house? The next thing to think about is the location and the surrounding areas. It is close to schools, hospitals, banks, entertainments, markets or your workplace? You need to consider each of these things. We can provide you with information about the various areas in and around Phnom Penh.

Secondly is the exclusive agreement and here you can only use one agent to advertise your property. Here the agent must report any responses to you every 2 weeks or sooner.

You should also consider things such as the year of the building, whether it has a space for parking and other things that you require from a property.

We have a range of properties in our portfolio and we can provide you with properties that meet all of your requirements and more. We make it easy for you to search properties on our website so that you can easily find suitable properties.

After you have found a suitable property, contact directly to the agent who advertise the property for more information and to arrange a viewing. You can contact the agent by phone or email about a specific property or your requirements and they will do the best to find suitable properties for you. If you want to visit a property, give the agent a call or send an email and they will arrange a viewing at a time that is suitable for you. They will even accompany you on your visit and will be on hand to answer any of your questions.

When you have found some properties that interest you, then next step is to visit them. Most agents are very flexible and can schedule visits at a time that is most convenient for you. They can pick you up and take you to the property at any time of the day ..

Most agents are bi-lingual and can speak English and Khmer. If the property is vacant, they can take you to it in just a few hours. However, if the property is occupied, they may need a to arrange a time that is both suitable for you and the seller.

When you have found a property that you want to buy, you will need to make an offer. This will give the seller notice of your intention to purchase the property and you will need to include the offer price, the payment method, the date you want to transfer the property and any other requests that you may have.

Agents will help you to negotiate everything and try to get you the best price. Once an agreement has been reached between yourself and the seller, they can start to prepare a sale’s contract.

Before signing a contact, you should review it with agents and a qualified lawyer. Most of registered and experienced real estate agents have contacts for experienced real estate lawyers if you don’t have one yourself. Together they can review the contract for any problems and protect your rights.

After reviewing the contact, if both parties agree, the contract will be signed and sealed and the buyer will be required to make a deposit. This deposit will be deducted from the final agreed sales price of the property.

If you need a loan or a mortgage to fund your purchase, you will need to apply to a bank or other financial institution as soon as you sign the property sales agreement.

Experienced real estate agents can help you to find a suitable mortgage lender that meets your requirements and they can help you through all the steps required. Although all institutions have their own rules concerning mortgages, they will all require that you sign and seal their loan application form. After the application for a loan, the institution will usually take 3 or 4 weeks to process the loan. After it has been process and approved, you will then need to sign an agreement to finalise the process.

Generally, it is normal for the buyer to sign the property sales purchase agreement before they get official approval for a loan or mortgage. If the property is used as collateral for the loan, the title must be transferred to the buyer first. The buyer would then need to have a guarantee from the bank to ensure that they have enough money to make the final payment.

If an ‘interim deposit’ has been requested by the seller, the buyer will need to pay it on the date stipulated on the contract. The seller will issue a receipt for the payment and it will be deducted from the final sales price of the property when making the final payment. In the process of transferring the title, there are also a few fees involved:

Once the housing loan has been approved, the seller will require the bank to issue a letter of guarantee. After the bank has issued the letter to the seller, the seller will need to start process of transferring the property title to the buyer.

Both the seller and the buyer will need to sign and seal the registration forms and it usually takes between 4 and 6 weeks for the transfer title certificate

After all processes are completed agents will arrange the time and place for the closing. Usually, if the buyer is using a loan, this meeting will normally be held in the offices of the bank that provided the loan. After the final sum and all associated expenses have been paid, then the buyer will receive the keys, property tittle deed and all necessary documents of the purchase.

Therefore, it’s very important to ensure that all the necessary documents have been prepared so that the transaction and avoid any undue delays. These documents include:

There are also other fees that need to be paid and these include:

This helpful guide is for people who are considering selling their property. Our agents provide a complete service from the initial consultation to the actual sale of your property. They will use their extensive knowledge of the market to help you sell your property.

Our agents are bilingual agent and can provide you with a lot of help on selling property.

The first question for most sellers is how much is their property worth. You will need to make an assessment of the value of your home which is the first step needed to help you sell your property.

Our agents can assess the current market price of your property by taking into account the property itself, the local environment, the condition of the neighbourhood, the price of the similar properties in the area and more. Our agents will also look at the current market trends in order to provide you with the best price possible.

In Cambodia, when you sell a property, there are also other costs that you need to take into consideration; these include things like agent commission, legal fee, transfer fee and relevant local taxes. Therefore, your net profit from the sale of the property is the amount minus any other fees and taxes that are applicable. It’s always advisable to ask about any such fees and taxes to your agent who will be able to give you the best advice possible. For you information, here is a list of the all the current fees and taxes that you will be liable for.

Agent Commission – Usually this is 3 to 10% of the final sale price and you must pay the real estate agent fee because they are responsible for the entire process of selling your property.

Taxes – You will need to pay a yearly property tax (0.1%), a stamp tax (4%) which is negotiable between the buyer and seller, and an unused land tax (2%) if your property is empty and not in use.

After your property has been successfully valued, you will need to enter into a mediation agreement with an agent who will be the intermediate for the sale of your property. There are two types of agreements and you are free to choose either one.

First is the non-exclusive agreement and here you can use multiple agents to advertise your property. The agent isn’t required to report any responses to you, if you decide to enter into this agreement.

Secondly is the exclusive agreement and here you can only use one agent to advertise your property. Here the agent must report any responses to you every 2 weeks or sooner.

For both types of agreement you can find buyers on your own.

There are, of course, advantages and disadvantages for both types of agreements.

- Ability to advertise ad widely as possible as multiple agents will be actively advertising your property. - The seller can try to find buyers privately and the seller is free to sell the property to this buyer. If the buyer finds a private buyer then they won’t need to pay any commission to the agent. Disadvantages include: - There is no requirement to report any responses. - The agents don’t often actively advertise the property because the chance of closing a contact is quite low. When it comes to an exclusive contract, the advantages include: - The agent will actively advertise the property. - The seller can still sell the property to a buyer that they found by themselves. Disadvantages include: - The seller is more dependent on the agent. - The seller has to pay the agent’s commission even if they sell the property to a private buyer. You will need to find an agent who can advertise your property on the general market to both local and foreign investors. This includes posting on bilingual websites, networking, social media, newsletters, office advertising and contacting existing customers. Moreover, the agent should share the progress of their marketing with the seller and provide a record of any inquiries and responses from any potential customer.

After a buyer has been found, the real estate agent will provide you with an “offer to purchase”. This will contain an offer of the price, transaction schedule, method of payment, and any other conditions as stipulated by the buyer. Once you and the buyer agree, then the contract will be signed and sealed.

You will need to notify the agent of the condition of the property so that they can prepare a sales contract. This is an important part of the process and the buyer needs to fully understand the current condition of the property so that any issues with the transaction can be avoided. When making the final sale, the property must be delivered in the condition stipulated in the contract.

The condition includes such things such as termites, leakages, and other damages. Moreover, any defects or malfunctions of equipment in the kitchen, bathroom, air-conditioning, water heaters and more must also be noted. Both of these are covered in the “Confirmation Note of Inspection of Premises” and the “Facilities”.

After both the buyer and the seller sign and provide a thumb print, the buyer must provide the seller with the deposit. At this point, all parties are bound by the contract and each party must fulfil any obligations written in the contract. If the contract conditions are violated, then a penalty may occur. It is important that each party understands any obligations they have and the real estate agent will be able answer any questions.

At this point the seller must provide all necessary documents to the Cadastral Officer and apply for the “registration of ownership transfer”. A hard title can take around 45 days and a soft title will only take around 3 – 5 working days to complete.

The seller will need to provide the title deed, ID and confirmation note of inspection.

The property will need to be delivered after the remaining balance has been paid. The seller needs to ensure that the property is ready to be delivered on the day of settlement. This includes settling any utility bills and clearing out any unnecessary items.

- The final confirmation of the property needs to be conducted with both the seller and the buyer present. - The buyer will pay the remaining balance to the seller. - When the remaining balance is settled, the seller will provide all of the necessary documents and the keys to the buyer. Then a “delivery confirmation” will be signed. - The seller must then pay the commission to the real estate agent and the cadastral officer and at this point the sale of the property will be complete.