Are you a foreigner looking for a house for sale in Cambodia? The Cambodian real estate market is active, and it is the best time to buy a property. Before a foreigner can buy a home or property in Cambodia, it is a must that he knows the laws governing the purchasing a house.
Below you will find some of the essential facts that you need to know:
Foreigners cannot own a land
This ruling applies not just in Cambodia but in neighboring countries as well as Vietnam and the Philippines. Foreigners cannot own a landed property like a house. They can only buy a condo unit. Don’t be sad as there are ways to purchase land in the country, but it involves some risks.
The easiest way to buy a house in Cambodia is to become a citizen of the country. However, it will take you seven years to become one.
Some purchase land through a Cambodian nominee. A bonafide Cambodian citizen will purchase the property under his name but will give you the power and full control over the property. This method is a bit risky, as the nominee may disappear, bringing all the documents with him. It may be very rare to happen, but it is possible.
The process of buying a property
The real estate in Cambodia is becoming popular with many foreigners. The Chinese are the number one investor in the country. They have invested a lot in infrastructure and manufacturing. Also, they see a better future in real estate. The number of foreigners interested in buying property is increasing. But, the process of buying a house is not easy.
If you have found your target property, the first thing you need to do is to conduct a title search together with an agent. The agent will help you in checking that the property does not have any issues. If you want to know more about the property, you can contact the local Commune council.
If the house is owned by a company, do not forget to ask for a photocopy of the ID of their representative. The owner will be asking for a 10% deposit to reserve the property, or it will depend on the arrangement between the seller and the buyer. The Cadastral Office will process the documents that usually take several months.
Once the documents are given to you, you will need to pay the transfer tax. Check the Cambodia property market report to find out how much you will need to pay for taxes.
For foreigners who want to invest in real estate in Cambodia, make sure you know the rules and laws about it. You might find it strenuous, and it may take several years to own one, but the waiting is worth it as the real estate industry in Cambodia is expected to rise within the next five years.