Welcome to www.sihanoukvillerealestate.comWelcome to www.sihanoukvillerealestate.comWelcome to www.sihanoukvillerealestate.comWelcome to www.sihanoukvillerealestate.comWelcome to www.sihanoukvillerealestate.comWelcome to www.sihanoukvillerealestate.comWelcome to www.sihanoukvillerealestate.comWelcome to www.sihanoukvillerealestate.comWelcome to www.sihanoukvillerealestate.comWelcome to www.sihanoukvillerealestate.com
house, home, apartment, land, business, villa, hotel, guesthouse, bungalow, car, motorbike, bike, warehouse, real estate & property for rent, sale & buy in Sihanoukville, Cambodia. S.R makes you easy!
Translate my website
More Information
 
Please scroll downwards or Select items
 
Visitors
page counter
 
Facebook
 
Soft v.s Hard Land Title

Soft vs. Hard Land Title (Land Deed)

When we talk about ownership of land properties in Cambodia, we might be asked: do you have soft or hard land title (land deed) for your own property?

Soft Title deed: It is an ownership certificate which is, during ownership transferring or registration, only recognized at the commune and district level. Low cost, high risk as there might be many people who own or claim on one property, no paying tax issues.

*Hard Title deed: an ownership certificate which is, during ownership transferring or registration, not only recognized at the commune and district level but also at ministerial level and is issued by the Cadastral Office. High cost, low risk as there is only one owner, paying tax issues.

During the recent real estate boom and nowadays, when buying and selling the properties, many transactions or ownership transfers are still largely done with soft title deeds at the commune and district level. The main reasons are that the related parties (sellers, housing developers, buyers, speculators) want :

  1. To do quick transaction this usually is completed in about a week.
  2. To avoid paying the higher transaction costs including property registration tax at 4%, ownership transfer fees, other taxes and the ownership transferring process at the Cadastral takes about two weeks or sometimes more than a month.

Property Ownership Transfer: Whenever you sell your property to another person, then you need to change from your name to the buyer's name in the property certificate, both for Soft Title and Hard Land Title (Land deed). The Soft Title Transfer will cost you around 1% of the property sale price and take about 2 weeks to finish the work, however, the hard land title (Land Deed) will cost you 4% for paying the Tax (VAT) and around 2% for other administrative works, and it will take you more than 5 weeks to finish the work. Sihanouk Ville Real Estate Company is the expert in the field, so we can help you to do this well.

Information 1: The buyer verifies the title certificate with the Land Office, checking for potential liens or encumbrances

The buyer should get a copy of the initial title certificate from the seller and verify proper ownership, ensuring that the seller is the rightful owner of the title certificate. He verifies the title certificate with the land office to ensure that there are no liens, mortgages or other encumbrances registered for the property. Note: Official cost is US $5, but it is essentially impossible to receive the certificate without paying US $10 to US $20, and sometimes more than this in various locations.

Information 2 : Receive information on the property from the Commune Council Official

The land purchaser may contact chief of the village or the commune council official to get information on the land in addition to an official search at the municipal land office. Cost to complete is $20.

Information 3 : The buyer should receive the certificate of incorporation of the seller's company and other documents from the seller

If the landowner is a legal entity, the buyer should receive a copy of the ID of the shareholder or person acting on behalf of the company, and a certified or notarized copy of the certificate of issued by the Ministry of Commerce. These documents are needed to verify the accuracy and identity of the company name appearing in the title certificate. A Power of Attorney is also needed, as well as a resolution signed by the board of directors authorizing a named individual to represent the company at the land office accompanied by the power of attorney implementing that resolution. Cost to complete is $20.

Information 4 : Apply for registration at the district land office of the ministry of land management, urban planning & construction (MLMUPC)

When two people/companies wish to buy/sell property together, they should go to the district office of the ministry of land management, urban planning and construction (MLMUPC) and prepare and sign documents. A cadastral transfer fee of about US $100 is paid to MLMUPC.

The documentation shall include the company's statute; its certificate of incorporation and power of attorney (obtained in comment 3). At that time, the original title certificate held by the seller must be presented to the district at the time of signing the deed in order to have the name of the new owner inserted on the document.

Information 5 : Pay transfer tax at the tax collection office

A transfer tax of 4% of value of the property is paid to the ministry of economy and finance at the tax collection office of the location of the transferred property. A tax receipt is issued to prove that the tax has been paid. The 4% transfer tax is set out in Article 40 of the Law on Finance for the year 1995. The assessed value is usually based on the total number of square meters, the land's location, use etc. The tax is not based on the actual price for which the land is sold, but it is based on the assessed value. For the land of more than 1200 m² , the surplus is subject to unused land tax. For the land less than 1200 m² , the unused land tax is not applicable. The time for the tax office to complete the calculation of transfer tax will depend on the location of the land and its size.

 
Designed and powered by www.sihanoukvillerealestate.com