Why the French colonial house is often more expensive than simple houses?
Actually, the French Colonial House is regarded as a heritage and more popular to foreigner because of its unique architecture.
If I buy property do I need to pay taxes?
Now you don’t need to pay anything, just pay the buying price but maybe later but not having exact time yet you will pay the tax.. means it’s easy to buy property in Cambodia. Note: Recently Cambodia has just had a law to get tax on proprety firstly do it in downtown area. For only the proprety that cost $25000 or more than so it must be paid for the tax 0,001 % per year (that's a little payment for the tax) but for the property outside town, it's not mentioned yet even more than $25000. So feel relax as Cambodian People have a feeling, it's the same payment.
How much do I need to pay on Soft Title, Lower Hard Title and Hard title?
- Soft Title : is about 10 0$ it’s depend on the property ( take a few days or even one or two days ).
- Lower Hard Title : is about 250 $ it’s depend on the property (take one week )
- Hard Title : it's devied in to 2 types
-Type1 : Land having Hard title already only need to do the Hard Title Transfer Price is not fixed, depending on the size of the property, location According to the Taxation Law on Hard Title Trasfer is 4% of the Price Valuation by the tax valuation team of the property, Plus Cadastral Service, document Preparation. Ex: Your Property Sold or valuated for 50,000 USD, so you Pay 4%(2000USD) to the tax department + cadastral Service ( less or more 800 USD).
Time Period : 3 weeks - 8 weeks (completed documents faster, uncompleted docuements take longer) Type 2 : Land without Hard title that need to do the registration.
Price : Is lower than land having hard title, less or more 1500 USD it’s depend on the property size and location also.
Time Period : 12 weeks minimum ( 3months to 4months or sometime more if the land having any complicated document or not enough documents)
Do I need to have hard title on my land?
You are foreigner, you should have hard title eventhogh it is expensive, but it can protect you from losing your property. (Note : If you don’t have enough money to make a hard title, you can use your Soft Title. it’s important when you know the history of the property clearly means that you buy from the real owner with recognised by the Local Authorities, having all the agreement from buying and selling between the owner and you including the withness. Another Important thing to make sure it doesn’t matter to you, you can go to trusted Real Estate office to help you to do the Title Search to all local authorities that will cost you some money buy you will feel more comfortable). BlueStar Real Estate has been working and helping with a lot of people, most of them are foreigners, providing document preparation-safe transaction-translation-title search-hard title management and more.
What does it mean soft title, lower hard title, and hard title? Which one is the most important?
- Soft title means that your property is recognized by village chief and commune chief. (Note : This title is popular for Cambodia people because it’s easy to transfer or sell with cheap service).
- Lower Hard Title means that your property is recognized by village chief, commune chief, and district government. (Note : This title is used for a big land especially big farm land.)
- Hard Title means that your property is recognized by all authorities, village chief, commune chief, district government and provincial Hall. (Note : it’s very strong protection to the property and it’s so popular for foreigner but usually expensive service)
Can I build a house on the river?
Yes you can build, but according to the law of Cambodia 30m from the river you can't build the big house or hotel that has a big foundation, you can build the wooden houses or bungalows or stone house with a simple foundation to the ground not very long deep to the ground such as hotel or big building to avoid collapse. Note : In Cambodia it's depend on you if you pay much money on permission to build that can be made.
What will happen if I (as foreigner) die in any accident after I buy the property and put your name?
Actually, basing one on the article in Agreement for agency (between you “foreigner” and representative) said that: in case, you die so the property will be transferred to your next of kin written in the agreement but the next of kin must responsible for transferring process fee payment which it doesn't cost much money, so that the property is transferred.
Can I buy the land on the river? Some people said that if I buy and someday the government can take over if yes? What is the safe law of buying land on the river?
Sure you can buy land on the river but you must know the law of Cambodia clearly. 30m from the river is set back land it means that you can’t make Hard Title and can’t build a big constriction like Hotels or big building. It’s afraid of falling down the land. But in this 30m on the river , you can build Bungalows, wooden houses, and more that is not the big foundation constriction. After 30m from the river, you can build whatever you want and can make Hard Title. The government takes over your property unless your property is under government development project to make sure to buy land on the river you must discuss with the experience real estate you can trust and because they can search at Cadastral Office if the property is in Government Project or not or they can give some useful information.
I’m a foreigner, can I buy a land or house in Cambodia?
According to the new law of Cambodia. A foreigner can buy a house and put his/her name only on the first floor or second floor, or third floor, like condominium. But for the ground floor, a foreigner can’t own and put his/her name.
Note: If you (the foreigner) want to buy a ground floor house or land in Cambodia,
You have 4 options as follow :
Option 1 : Through the Company (forming a company
You can purchase land legally in the Kingdom of Cambodia through your Company registered in the Ministry of Commerce with 51 Cambodian shares and 49 foreign shares based on the Investment Law of the Kingdom of Cambodia. This is mostly happended by big investment company on agriculture...this costs a lot of money.
you have to put the deposit in the bank for $5000 and spend more to firm a company. Doing this way you can buy land and put your company's name.
Option 2 : Through Long Term Lease Agreement (50-70 or 90 year lease)
You can purchase land legally in the Kingdom of Cambodia through a 49 years Plus 20 years Lease Agreement. This process is popular for a big project investment, such as on agricutlure, concession land.... This can be for residential properties also, you do with the owners and in the lease said you can sublease or transfer to someone else during the existing contract( for this you will pay all the money in one time).
Option 3 : Through Khmer Citizenship
You can purchase land legally in the Kingdom of Cambodia if you have obtained Khmer Citizenship. It means that you have been living in Cambodia for long time at least 7 years and you register to get a Khmer Citizen. or by the donation to the government it might cost alot of money.
Option 4 : Through a Cambodian Citizen (nominee agreement, through khmer friend, khmer wife-husband)
You can purchase land legally in the Kingdom of Cambodia through a Cambodian Citizen
1) You must find a representative (Cambodian Nationality) such as a friend , a wife, etc, that you can trust, however you must have the agreement between you and your representative that can protect you from any lose of property, About these process you can come to BLUESTAR REAL ESTATE for the document preparation and more.
2) You can find a trusted real estate company to be your representative. For the secure representative, Blue Star Real Estate
can be your trusted partner. As the result, so far 20 foreigners noticed by December 2015 already asked Blue Star RealEstate CEO/Owner to be the representative. Importantly, Blue Star Real Estate has been preparing a strong contract for you that can protect you that means you are not going to lose your property. (to read the contract please come to Our Office. Thanks!)
Do I need to pay you(the representative) if I sell the property?
Sure, when you sell your property you must pay me 3% of the selling price, all said in the agreement between you and me. Actually, it’s free for being the representative at the beginning.But some clients pay me by year...it depends on the price you bought.
What will happen if you are the representative die in any accident ?
In case, if I die in any accident, so you can bring all the documents relevant to the property to the cadastral office (For the Hard Title) but if the property is in (Soft Title) you'd better go to the commune office so that they can transfer to your new representative chosen by you.
How much do I need to pay (Blue Star Real Estate) to be my representative?
Well, for the representative, Blue Star Real Estate Service is “Free” but you have to pay for the document preparations translation Khmer-English, Local Authorities’ signatures, lawyer’s stamps and including our service. Totally is about 300 USD but not always it’s depend on the property. The service can be a little less than or a little more depend.