Guide to Selling Property in Cambodia

14 February, 2020
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Guide to Selling Property in Cambodia

If you consider selling your property, Zillionhome.com-listed 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 Prices
The 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. Zillionhome.com-listed 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 $1000
  • Taxes: 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 sell
Once 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 Zillionhome.com-listed agents?
Zillionhome.com-listed 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 Contract
When 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 Property
The 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:
  1. The final confirmation of the property will be conducted at the premise in the presence of both the seller and the buyer.
  2. The buyer pays the remaining balance to the seller.
  3. 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.
  4. The seller pays the commission to the real estate agent and lawyer, which completes the sales of the property.

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