Legal Update: Transfer of Ownership over Immovable Property in Cambodia
Amid a rapid growth of real estate market in Cambodia and an increasing number of property sale and purchase, a proper ownership transfer over immovable property is significant to ensure the owner’s legal acquisition of ownership and to protect his or her property interests. Immovable property rights of Cambodian individuals and legal entities are guaranteed and protected under Cambodia’s Constitution, Land Law, and Civil Code.
Ownership is defined as the right of an owner to freely use, receive income and benefits from, and dispose of an object owned by the owner to the extend permitted by existing laws and regulations and can be acquired through various forms including sale-and-purchase, exchange, gift, or succession. A legal title grants actual ownership to an immovable property and a bundle of property rights that come with the ownership, as visible through public records, and consists of different types—such as hard title, soft title, strata title, LMAP (Land Management and Administration Project) title, title of possessory right, and so on. These titles serve as proof of ownership and strong evidence against trespass and unlawful occupation of the property.
As required by law, a legal ownership of an immovable property, identified either by soft or hard title must be registered with land office or local competent authorities. A transfer of ownership over an immovable property shall be registred at the land office or local competent authorities and is subject to the stamp duty tax at a rate of 4 percent of the market value of the property except when an exception applies.
A proper transfer of ownership over immovable property is not only a legal mechanism which conveys actual ownership to the property but also provides a solid security over your investments. Therefore, it is necessary to consult with legal practitioners with expertise and experience in the transfer of ownership over immovable property in Cambodia.
Disclaimer
The article is merely for general information purposes. It does not constitute a legal advice on the subject matter. If you have any question or need any assistance, please feel free to contact us at contact@sithisak-lawoffice.com or (+855) 23 6373 168.
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