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Guide to Selling Property in Cambodia Guide to Selling Property in Cambodia 14 February, 2020

If you consider selling your property, agent provides such services in Cambodia from consultation to after-sale follow-ups. We guarantee to fully support you, as our customers, to sell your properties. For this purpose, we entirely take advantage of our know-how, as a bilingual real estate agent, on renting residences and offices in central Phnom Penh, intermediating property sales and managing properties.1) Consultation of Sales and Assessment of the Property PricesThe biggest interest in selling a property is, “How much can it be?” Assessment of the property value is the first step to sell your property. agent assesses the market price of your property for free. We will propose the appropriate market price of your property by considering the living environment and the condition of the neighborhood and comparing these to the similar properties in the neighborhood and market trends, after carefully assessing your precious property.Besides the assessment of the property price, we consult with our customers a variety of requests and concerns. Please do not hesitate to contact us at any time.When you sell a property in Cambodia, miscellaneous costs arise such as commissions, lawyer fees, and taxes. Your net profit is the amount of deducting miscellaneous fees and taxes from the sales price. It is advisable to check miscellaneous costs and fees as well as taxes in advance by inquiring our agent.  Here is the list of necessary costs and taxes to sell a property in Cambodia.Agent Commission: The fee you must pay for the real estate agent who intermediated the sales of your property. Generally, it amounts to 3% of the sales price.Lawyer fee: Fees for a lawyer to prepare the buy and sales contract, Generally, it amounts $300 to $1000Taxes: Documentary stamp taxes generally 4% and yearly property tax generally 0.1% these tax rate does not depend on the sale and purchase price it is based on the land market price from the general tax department.2) Request and advertisement of the sellOnce the selling price is set, you need to request the property sell and to bind a mediation agreement with an agent(s) who intermediates to sell your property.There are two types of mediation contract: “non-exclusive listing” and “exclusive listing”   Reliable agent / Effective period Selling the property to a buyer whom the seller found on his own Report of the responses Non-Exclusive Multiple agents / 3 months Acceptable Not required Exclusive 1 agent only / 3 months Acceptable More then once in 2 weeks Advantages and disadvantages of each mediation contract are listed below:   Advantages Disadvantages Non-Exclusive • It allows advertising widely as the seller can request the sales to multiple agents. •  The seller can advertise the sales privately. • The seller can sell the property to the buyer whom he found on his own. •   No commission is paid to the agent if the owner sells the property on their own. • Reporting of the responses is not required. • The agent does not advertise actively since the chance of closing a contract is low.   Exclusive • The requested agent advertises actively. • The seller can sell the property to the buyer whom he found on his own.   • Higher dependency to an agent • Pay commission to the agent even though the owner sale the property by his/her self.                          Want your property sales advertised by agents? agents can process the sales promptly as we advertise these towards a general market as well as foreign investors who are our clients. The advertisements include posting on our website (both in English and in Khmer), registering to appropriate networks, posting on social medial, sending out newsletters, advertising at our office, and advertising to our existing customers."We will also share the advertisement's progress and records, including inquiries about the property and responses from prospective customers. 3) Real Estate Sales ContractWhen the buyer is found, you’ll receive an “offer to purchase” from the real estate agent to negotiate the price, schedule for signing the contract, payment method, delivery schedule, and other conditions. Once the seller and the buyer come to an agreement, the sales contract will be signed.The agreed-upon selling price, payment method and other terms will be stated clearly in the real estate sale-purchase contract.The seller needs to notify the conditions of the property when preparing the real estate sale-purchase contract. It is essential to report the present conditions clearly and properly and have the buyer understand it fully in order to avoid any trouble throughout the property sell. It is required to deliver the property under the conditions reported to the buyer in the contract.When both the seller and the buyer sign and thumbprint on the real estate sale-purchase contract and the buyer remits the deposit to the seller, the contract is bound. After the sales contract is closed, each party practices his/her rights and obligations in accordance with the contact. If you violate the contract, a penalty may occur. Please check and clarify with the real estate agent if you have any questions.The seller will start to give all necessary documents to Cadastral Officer for their review to apply for “Registration of Title Transfer”.    During of the Tittle Transfer:    - A hard tittle deed usually takes about 45 to 60 working days.    - A soft tittle deed takes about 30 working days.4) Move-out, Balance Settlement and Delivery of the PropertyThe property will be delivered once the remaining balance is settled. The seller needs to make sure that the property will be ready to be delivered by the balance settlement day. Please carefully reassure the borders between surrounding properties, to move out, to clear any unnecessary items from the premise and to settle any utility fees by then.The procedures from balance settlement to delivery of the property go with the following list:The final confirmation of the property will be conducted at the premise in the presence of both the seller and the buyer.The buyer pays the remaining balance to the seller.As soon as the remaining balance is settled, the seller will hand all necessary documents related to property and the keys to the buyer. Then, both parties must sign on “the delivery confirmation” note and exchange a copy.The seller pays the commission to the real estate agent and lawyer, which completes the sales of the property.

Guide to Rent Property in Cambodia Guide to Rent Property in Cambodia 14 February, 2020

While any international move can be challenging, moving into Cambodia requires a few lifestyle adjustments. Nowadays, with proper planning, most foreigners settle in comfortably and quickly come to appreciate the unique cultural and social opportunities in this fast-growing capital afford.   It is very important to engineering a convenient and rewarding lifestyle for all members of your family. For that purpose, the following section is designed to give you the information necessary to:   Choose the right neighborhood for you.Decide which type of housing best suits your needs.Work with your agent to quickly locate and secure a quality property. Types of House Apartment/Condo 90% of expatriates reside in apartments/condos. Fortunately, many apartments/condos have been developed to accommodate the taste and lifestyle of expatriate residents. These include large living and dining rooms, spacious master bedrooms (with children's bedrooms possibly on the small side), Western appliances, ample storage, and, in most cases, parking space. Apartments are available mostly in a prime area of Phnom Penh such as Khan Boeung Keng Kang, Khan Tuol Khan Kork, Khan Toul Tompoung, and Khan Chamkar Mon, Khan 7 Markara, and Khan Daun Penh. Apartments may be located in small, intimate compounds of just a few units clustered around a central garden or by the riverside or within touristic areas. Mid-sized buildings contain 10 to 30 units with a common recreation area. Or the ultra-modern, mammoth high-rise structures now dot the Phnom Penh skyline. agent features such apartments/condos ranging in size from one-room studios of about 35 sq. meters to four-plus bedroom units of 300 sq. meters and larger.   Duplex Duplex properties are often spacious, may contain a yard and are appropriate for families who do not mind living next door to their landlord. The greatest percentage of duplex units can be found in Borey, suburbs and some areas in the city center.   Single Family Home Difficult to find in central Phnom Penh due to space limitations, the single-family homes in central areas are often cramped, old and pricey. The suburban areas of Khan Mean Chey, Khan Sen Sok, Khan Chroy Changvar, Khan Russey Keo, Khan Pur Sen Chey, Khan Praek Pnov, Khan Kamboul, Khan Dangkao, Khan Chbar Ampov offer many more options: homes that are larger, newer and comparatively well-priced. The agent has access to many quality properties in these areas. Most single-family homes in Phnom Penh contain some semblance of a yard or garden. But you should not envision your Golden Retriever bounding across the yard to you.   Compound Generally, this type of housing is made of a cluster of single-family homes, duplexes or four-plexes sharing common grounds and recreational facilities. Usually enclosed, excellent for families with children and the security conscious, compounds are somewhat rare in Phnom Penh. But the agent can introduce you to the best of such properties. They boast each two stories high, with three to four bedrooms, and may run between 150 sq. meters to nearly 600 sq. meters. The larger properties may include a maid's room.   Housing The vast majority of expatriate housing in Phnom Penh is "unfurnished". Unfurnished expatriate housing generally includes major appliances: stove, oven, refrigerator, washer/dryer, dishwashers, and air conditioning/heating. Some fixtures such as blinds, curtains, or light fixtures, may also be included or may be negotiated into your rent. The agent will assist you with the negotiation process.   Analyzing Your Needs Prior to meeting with the agent, you and your family should sit down and define your priorities. Create a 'wish list' and divide the features as those being ‘absolutely necessary’ or ‘desirable’.   The following is what we suggest you consider:  Your maximum acceptable commute: work and school,The relative advantages of living in central vs. somewhat outlying areas,Your minimum space requirement (tables, chairs, sofas),The number of bedrooms (guest rooms, a maid's room),Your drive in Phnom Penh: One or two vehicles?Your required space for large items, if you are bringing your furniture such as pianos, and whether your landlord may accept these pieces or waterbeds,Lifestyle, proximity to shopping and recreation, the general environment of your housing,Pet-friendly accommodation,Other preferences.  Understanding and Working with Your Real Estate Agent Real Estate is a highly competitive, yet loosely regulated industry in Cambodia, and only half of real estate agents are well-trained and very conscientious. Still, this support may entail the handling of maintenance issues, landlord/tenant disputes and a host of general lifestyle concerns. Reputable real estate web portal such as agent accepts only agents known to be highly responsive to your needs, to provide unbiased answers to questions you may have about a given property or neighborhood. You should feel confident that your agent wants to see you happy and content in your new home - for the long term. His/her reputation and future livelihood are heavily dependent upon your satisfaction.   Understanding Your Lease Agreement For most expatriate-grade properties, the lease agreement will be drafted in Khmer and English, with the Khmer version prevailing. You should familiarize yourself with the following lease terms:   Rent Paid monthly in advance to the owner. A late fee maybe exacted if rent is overdue. The payment of the first-month advance rents are generally required upon initiation of the lease.   Deposit All properties in Cambodia require a deposit. The size of the deposit may vary from the rent of one month's rent to four to six months for expatriate grade properties. The deposit is "technically" refundable. In some cases, a portion of the deposit is deducted to pay for the restoration of the property when the tenant leaves. Restoration costs can be greatly minimized by careful maintenance of the property.   Agent Fee / Commission The industrial standard provides for one-month rent to be paid to the real estate agent as their commission. Note: In Cambodia, the agent fee/commission should be covered by the property owner or landlord.   Management Fee A monthly management fee for general building maintenance and, possibly to defer the cost of an on-site building manager.   Time Frame and Steps Involved in Securing a Home You should generally begin your home search at least one or two weeks before your desired move-in date, although beginning one-week to four-weeks before allows ample time for the owner to complete any necessary renovations. It is difficult to secure a suitable property more than four weeks before the move-in date, except where the property is newly constructed or well prepared or, that the existing tenant will cooperate in its showing. You should plan to spend as least one-day viewing various properties, and up to a week, if special needs are indicated. Once you have located a property you are interested in, make the following schedules to obtain:   Application Basically, a document stating intent to contract a lease. (Applications are not legally binding, but they should not be submitted casually - let the agent listed in agent guide you in this process.) Any requests related to the property must be submitted at this time and will be considered by the owner. Requests typically include minor maintenance or renovation work, the addition of various fixtures, cable or satellite TV. Once again, it is best to let your agent guide you in making these requests as negotiability vary from property to property.   Landlord's Response Usually within 48 hours. If "accepted", move on to the draft lease. If declined, continue your housing search. Note: Landlords may "accept" some contracts under certain conditions, meaning the elimination or reduction of requests. The agent -listed agent stands on your behalf in these negotiations.   Draft Contract Generally prepared in Khmer and English. A copy will be sent to you or your corporate HR for negotiation, review, and approval. Your real estate agent will also review the lease terms.   Final Original Contract Once all parties agree, an 'original' contract is made. There can be no further negotiation at this stage. The original is taken to you or your company for execution, and all related fees become due and payable before the lease start date. A Cambodian landlord will rarely turn over a property before receiving their payment in full.   Prior to move-in day The agent will see that all utilities, amenities, telephone, internet or cable TV are arranged and double-check all the agreed-upon terms with the landlord". before you move in. Your agent will provide you with detailed information as to your many options and inform you of any pertinent building policies. Please be very specific about your needs in this area. Your real estate agent will also coordinate with your moving company and the building manager to see that the move is smooth and trouble-free.   Move-in-day Your agent property manager will conduct a thorough inspection of your new property and will guide you in the use of all appliances.   Locating Pet-Friendly Housing Until recently, the intent to keep a cat or dog, greatly reduced one's access to available properties. Those landlords who did allow pets would invariably do so under limited conditions. Then, they would require that a special damage clause be attached to the housing lease that holds the lessee liable for any and all pet-related damage. They may also require that an additional deposit be advanced to cover the expense of sanitation and restoration when the tenant vacates.   We recommend that you inform the agent -listed agent of your intention to keep a pet. If you have a dog, please describe the breed and size. Your agent can direct you to properties that are pet-friendly and assist you with any additional clauses that may be required in the lease agreement.   Taking Care of Your New Home Now that you have settled into your new home, we would like to give you a few tips on caring for your property. These simple recommendations can significantly reduce damage claims when you vacate. You may or may not be responsible for paying these claims (according to the building policy), but a little care can ensure that claims are kept to a minimum.   Some allowance will be made for the natural aging of carpets, wallpaper, and fixtures. However, stains, scratches, holes, 'dings', and any matter of child or pet damage will require 'restoration' at your or your company's expense. Your Cambodian landlord will be most concerned about: holes in walls or woodwork (defined as anything larger than a small tack mark); stains, marks or abrasions on wall surfaces; stains to carpeting or mildew damage; scratches or abrasions on counter services in kitchen and bathroom(s), damage to kitchen appliances, plumbing or A/C systems. A little care can avert such damage.  Use picture hooks to hang small and medium-sized pictures. (The agent will advise you where to buy these.) Large pictures may require picture rails for proper support, and you will need the owner's consent to install these.Make sure you keep the drains on balconies and terraces open to prevent water from backing into your home or apartment.Vacuum carpets regularly to prevent the development of mildew stains (pay particular attention to baseboards and inside closets).Use gentle scouring agents on stainless steel and ceramic surfaces in the kitchen and bath.Do your best to restrict your children's use of magic markers, crayons, and paints to 'approved surfaces'.Immediately report any plumbing, electrical or air/con malfunctions to your property manager or landlord so that repairs can be made before serious damage results. Note: The agent will make a thorough inspection of your property just before you move in and will note any pre-existing damage. This report will ensure that you are not charged for someone else's damage when you vacate your property.

Guide to buy property in Cambodia Guide to buy property in Cambodia 14 February, 2020

1) Planning and Funding When considering purchasing a property in Cambodia, a buyer’s biggest concerns are:Good location,Property pricing,Supportive infrastructure, Healthy environment,Legality. Generally speaking, however, a property purchase is a large investment. Also, Cambodian people now generally require a loan or mortgage to finance such a purchase.We will tackle financing in a moment. But first, let's start by considering how much you can afford. To determine a reasonable price, you need to consider the amounts you intend to fund, whether using your existing assets or a loan/mortgage.When considering how much you can afford, in addition to the price of the property itself, you will need to consider miscellaneous costs such as tittle transfers or registration costs.2) Choosing PropertiesNow that you know how much you can afford, the next step is to gather information on properties that meet your requirements and priorities.Types of Property: Flat / Villas / Condominium / Single Houses / Land, etc.Purposes: Private Residence / Investment / Second Home, etc.Preferred Areas: Convenience to Commute / Living Environment, including Locations of Markets, Hospitals, Schools, etc.If you'd like to learn more about Phnom Penh, please click an area on the map to show that area's information.Year of Construction: How old the building isParking Space: How many parking lots you agents offer a great selection of properties with photos and floor plans, mainly in the city center. It also covers many, many more areas throughout agents make it simple to search for properties that suit your needs and wants. Properties Search. Once you find properties that interest you, please contact listing agents and they will get back to you by phone or e-mail with specific details and availability. AND if you wish to visit the property, no problem! They will arrange everything for you and accompany you on your visit.3. Property VisitsOnce you find properties that interest you, visiting them is the next extremely important step. The listing agents will be available to schedule visits for you and then pick you up at a convenient meeting point to show you the property.Basically, if the property is vacant, the bi-lingual agent can arrange a visit at almost any convenient time for you. If, however, the property is still occupied, we will generally need a working day or two, prior to your desired visit date to schedule a visit with the seller.4. ApplicationAfter you have decided on a property, you need to submit a "purchase application form". Completing the "purchase application form" notifies the seller of your intention to purchase the property through the listing agent. This is important for the Seller to know that the listing agent can work on your behalf.The purchase application form includes:Your offer price,Payment method,Contract date, Delivery date,Others (upon request)The listing agent will help you negotiate all the details (including the final price) with the Seller.Once you and the seller have agreed on the major conditions, a sales contract can be prepared.5. Contract SigningPrior to signing a contract, the listing agent and lawyer will review all the content with you. The listing agent and lawyer will help you to review certain contractual issues with the Buyer and Seller at the time of purchase. Such issues include an overview of the property as of the contract date, the agreed-upon payment method, compensation for contract violations and the owner's rights.After the required explanations, the Buyer and Seller will acknowledge their agreement and will sign and seal the contract. Upon signing the agreement, the Buyer shall make a partial deposit. The amount deposited at this time will be deducted from the agreed-upon final sales price.Costs involved in purchasing a property Transaction costs (legal fees and agent’s commission) can be different from the deal to deal:Cadastral Office “Service Fee”                    US$1000 – US$1500                   BuyerTittle Certificate                                           US$10 – US$20                           BuyerLegal Fees               US$200 – US$500                  Buyer/SellerAgent’s Commission              2% - 3%                          SellerTransfer Tax              4% (officially)                          SellerCadastral Transfer Fee                     350,000R                           SellerStamp Duty             5000R                           Selle6. Housing Loan ApplicationIn the event that you intend to fund your purchase with a loan/mortgage, you need to apply to an appropriate financial institution, right after signing the property sales and purchase agreement.Each financial institution applies its own specific loan approval process and requirements and these can get complicated quickly. The listing agent can assist you by introducing suitable mortgage lenders and lending plans to you and by helping you through all the steps with each potential lender. Each financial institution will require that you complete, sign, seal and deliver their specific loan application form. Financial institutions normally take between 2 and 3 weeks to process a loan application. Once approved, you will need to sign a loan agreement to finalize conditions to borrow money.In some cases, the property sales and purchase agreement have a special clause with respect to the loan/mortgage.Since it is very common for potential Buyers to sign the property sales and purchase agreement BEFORE obtaining official approval from a financial institution for a loan, a special clause is necessary. The clause allows for, "canceling the agreement in the event that the Buyer fails to obtain a housing loan". If a potential Buyer does have to cancel this, they need to notify the Seller through an agent. In this case, the property sales and purchase agreement usually stipulate that the whole deposit shall be paid to the Seller.In the event that an "Interim Deposit or Booking Payment” is requested by the Seller in the property sales and purchase agreement, the Buyer will pay the interim deposit to the Seller by the due date specified on the contract. *The Seller shall make a booking agreement for the Buyer. The amount paid as an interim deposit is accepted by the Seller and applied to the total sales price. At the closing, the Buyer must pay the remaining amount. The total sales price, minus the amount paid as a deposit.Costs involved in purchasing a property Bank charge                      0.5% to 1% of total amount of loansTittle burden in the Khan “District”               US$250 to US$500Lawyer fee                      US$200 to US$500 Property valuation                      US$180 to US$500Fire insurance              Depend on the size and condition of the building7. Closing and TransferOnce a housing loan is approved, the Buyer pays the remaining sum of the sales price to the Seller and the property is transferred to the Buyer. The agent will arrange the time and place for the closing. If the Buyer is using a housing loan, it is quite common to hold the closing at the bank which offered the mortgage.The Buyer pays the remaining sum and other expenses, and then receives the keys and necessary documents for the property. Normally, a Legal Scrivener (arranged by the agent for the deal) processes the title transfer to the Buyer and necessary related registration documents).The Seller and the Buyer sign and seal the registration application forms.In addition to registration fees, the Buyer pays a commission to the Legal Scrivener.* It normally takes between 4 and 6 weeks after applying for the title transfer for a title certificate to be issued.Please make sure to prepare all the necessary documents in advance.Original copy of identification card (Passport for foreigner) with an officially registered sealOriginal copy of the family bookOriginal copy of marriage certificate, if married, or letter of clarification of single status, if not married Original copy of a birth certificate The Buyer needs to prepare the remaining sum and other fees.Agent's commissionLawyer feeManagement fee (for condominium or Borey).Other membership fees Then, the property is delivered to the Buyer. And a final check of the present condition of the property is conducted in the presence of both the Seller and Buyer. Moving inAt the Buyer's request, the agent assists the Buyer to move in by arranging for utility setup services and handling all necessary agents and bilingual coordinators remain at your disposal, to help you find and purchase the "right" property. And they continue to support you long after your purchase is completed.