How to safely and legally purchase land?

23 August 2023 | Posted in Content Hub | Tagged: legally, purchase land
How to safely and legally purchase land?

Purchasing land in Cambodia is a great investment that brings back huge profits to investors. However, before enjoying those profits, investors are advised to be careful when investing. With the push forward in developing more urban centers in Cambodia, many landed areas are now seeing a peak in their market value. Nonetheless, issues concerning land purchases persist that demand extra attention to the property’s details and legitimacy. Land investment can be overwhelming and requires extensive knowledge and experience in the legal aspect. The process can be checking property background, price negotiation, negotiation on payment terms, and ownership transfer. Below are 4 processes land investors should follow in order to buy land legally and safely!

How to safely and legally purchase land?

Property Background Check

     Investors interested in purchasing lands are highly encouraged to conduct a background check on the property before making final decisions. In Cambodia, land properties are registered with either soft titles or hard titles. Soft title lands are more at risk of land ownership claims and disputes than hard title lands. A title search is, therefore, crucial to ensure investors are dealing with the right owner and to learn if there are registered mortgages and other information on the land. Investors can request a copy of the land title from the Ministry of Land Management, Urban Planning, and Construction. The background check should also include checking whether any zoning and land use restrictions may restrict development. 


Negotiate On Property Price 

     The second process investors inevitably have to go through is the negotiation stage. Negotiating on the offer can be efficiently done with advanced research on the property market value and a clear financial budget in mind. Nevertheless, investors should remember that this negotiating process may take up some time and effort before reaching a final satisfactory deal. With that in mind, it is highly recommended that investors have professional real estate agents to help smoothen the process. Some tips for negotiating a deal on land purchase is to be direct on the deal you are willing to pay for, banter with an initial offer that is less than what the seller proposes to lower the price, and learn of recent sales offer to propose an offer most likely to be accepted by the seller.    


Writing Up A Contract Deal

     Before reaching the end of the land-purchasing deal, buyers have to write up a contract for the purchase. According to the land law, a purchase contract for a land plot in Cambodia should be in written form with authentic deeds forms including a written contract by the notary, and a contract sealed by the commune, Sangkat, district, or Khan administration. In general, the land sale and purchase contract should include the following: 

  • The identity of the parties involved and relevant information on the seller and buyer 
  • A description of the land or immovable property with details such as location, land size, and other identification of the land
  • Inclusion of the agreed sale-purchase price, and written clarification of the party responsible for the taxation fees, registrations fees, ownership transfer fee, legal services, and other applicable fees
  • The payment method for the purchase should be listed in the written contract with details such as mortgage terms, deposited amounts, total purchase price, etc
  • Notable written details on a timeframe for the registration of ownership transfer, terms, and conditions, as well as the process for the handover of the land property, should also be included in the written contract


Land Ownership Transferring 

     Transferring the ownership of land property is the final process to purchase land safely and legally. Registration for the transfer usually takes between three to six weeks or longer for the process to be completed depending on the land property. However, soft titles land transfer may take less time to process the ownership transfer. These are the final process for the ownership transfer: 

  • Both the buyer and seller are obliged to submit the required documents and property transferring application to the Ministry of Land Management, Urban Planning, and Construction. 
  • After applying, either the buyer or seller has to pay the transfer tax before completing the registration process at the Cadastral office. The land ownership transferring process will require a thumb-printed and written signed contract between the seller and buyer. 
  • The final step of this process is awaiting the certificate of title issued by the Municipal Land Office.                 


          With an increase in the development plan for more urban centers as well as strategic development plans set out by the government, land investment in Cambodia foresees great outcomes shortly. Whether you are looking to purchase land in the city or provinces, you can anticipate a high return rate from your investment.​​​ To safely purchase land in Cambodia, investors should definitely have a background check on the property to get all the necessary information. Having good negotiating skills, writing up a contract deal, and processing the ownership of the land is a crucial steps well. Investors who are looking for land investment are highly encouraged to get extra help from real estate agents. Contact the CBRE team for assistance on your land investment and the best offer in the market!


Click here to read about: Can Foreigners Own Land in Cambodia?

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