Real Estate

A property title or title deed is a document specifying legal ownership to a property. There are four kinds of property titles in Cambodia. Understanding the differences between those types of titles is important because they grant different rights to the owner.

Hard Titles are the most reliable proof of property ownership in Cambodia. They are issued by the Ministry of Land Management, Urban Planning and Construction (or provincial or municipal equivalents) and have official demarcated boundaries. Hard Titles contain information that has been duly certified by the Ministry of Land. Therefore, such titles are recognised at the national level. Foreign nationals are prohibited from obtaining Hard Titles which prohibits them from owning land and landed properties in Cambodia. Hard Titles allow to register encumbrances (mortgages, hypothec, etc).

Soft Titles are the most common form of property ownership proof issued in Cambodia. Soft Titles are a certified sale or purchase agreement provided by the Sangkat (communune) or district office so they are only recognised at the local government level, not at the national level. A letter of possessory rights is issued which grants the “possession” of a property. However, the person who occupies the property is not legally recognised as the owner of the land. Foreign nationals are prohibited from obtaining Soft Titles which prohibits them from owning land and landed properties in Cambodia. Soft Titles cannot record encumbrances. However, it is possible to convert a Soft Title into a Hard Title.

Strata Titles are the only type of property titles granted to foreign nationals (they are also delivered to Cambodians). It was introduced so foreigners can claim private ownership of a co-owned building unit. The law on providing foreigners with ownership rights in private units defines a co-owned building as a building or construction in which several owners reside. A co-owned building consists of some parts which are the exclusive ownership of each co-owner, called “private units”, and some other parts which are common spaces for common use of the co-owners, called “common areas”. A condominium is a co-owned building. Strata Titles are issued by the Ministry of Land Management, Urban Planning and Construction so they are recognised at the national level. It is also important to keep in mind that the following criteria apply to Strata Titles:

• It applies only to buildings constructed in 2010 or after
• Foreigners can only own up to 70% of the floor space
• Strata Titles cannot be issued to units on the ground floor
• Strata Titles cannot be delivered to any property within 30km of the closest land border

LMAP (Land Management and Administration Project) Titles have been introduced as a way to enhance land tenure security. Such Titles include the exact GPS coordinates that are lacking from traditional hard titles. Through GPS coordinates, the land demarcation is registered, so on top of being recognised at the national level, a LMAP Title is also recognised by relevant cadastral offices throughout the country. If an LMAP Title exists on property, that means that the broders have been agreed upon by neighboring parties so cadastral matters are not prone to dispute. Like Hard Titles, foreign nationals are prohibited from obtaining LMAP Titles which prohibits them from owning land and landed properties in Cambodia.

Whether the property or land is registered under a Hard Title, a Soft Title, a Strata Title or a LMAP Title, it is important to check the land title to ensure that:

• The person selling the property to you is the duly registered owner of the property and has the right to sell it to you
• There are no registered encumbrances on the property such as loan, lien, mortgage, lease, usufructs (if any, you should consult a professional)
• The transfer history does not show any suspected transactions or change in the title deed