Completion Time Frame: 7-30 days (simultaneous with procedures 2 and 3)
Completion Costs: US$ 10 – 20
Points to Note:
The buyer should obtain a copy of the initial title certificate from the seller and verify proper ownership, ensuring that the seller is the named owner on the title certificate. He verifies the title certificate with the land office to ensure that there are no liens, mortgages or other encumbrances registered for that property. Official cost is 20,000 riels but it is essentially impossible to obtain the Certificate without paying US$10 to US$20.

Step 2: Obtain information on the property from the Commune Council Official

Completion Time Frame: 10 days (simultaneous with procedures 1 and 3)
Completion Costs: no cost
Points to Note:
The land purchaser may contact the village chief or the commune council official to obtain information on the land in addition to an official search at the municipal land office.

Step 3: The buyer should obtain the certificate of incorporation of the seller’s company and other documents from the seller

Completion Time Frame: 10 days (simultaneous with procedures 1 and 2)
Completion Costs: no cost
Points to Note:
If the landowner is a legal entity, the buyer should get a copy of the ID of the shareholder or person acting on the company’s behalf or certificate of incorporation of the company, issued by the Ministry of Commerce, to verify the name appearing in the title certificate. A Power of Attorney is also needed, as well as a resolution signed by the Board of Directors authorizing a named individual to represent the company at the land office accompanied by the Power of Attorney implementing that Resolution.

Step 4: Apply for registration at the District Land Office of the Ministry of Land Management, Urban Planning & Construction (MLMUPC)

Completion Time Frame: 1 day
Completion Costs: KHR 350,000 or US$ 90 (Cadastral transfer fee) and KHR 5,000 or US$ 1.30 (stamp duty)
Points to Note:
When 2 persons/companies wish to buy/sell real property, together they should go to the district office of the Ministry of Land Management, Urban Planning & Construction (MLMUPC) and arrange to prepare and sign documents.

A cadastral transfer fee of about KHR 350,000 is paid to MLMUPC.

The documentation shall include the company’s statute, its Certificate of Incorporation, and Power of Attorney (obtained in Step 3). At the time, the original Title Certificate held by the seller must be presented to the Khan at the time of signing the deed in order to have the name of the new owner inserted on the document.

Step 5: Pay transfer tax at the Tax Collection Office

Completion Time Frame: 1 day
Completion Costs: 4% of property value (transfer fee)
Points to Note:
A transfer tax of 4% of value of the property is paid to the Ministry of Economy and Finance at the Tax Collection Office of the location of the transferred property. A Tax Receipt is issued to prove that the tax has been paid.

The 4% transfer tax is set out in Article 40 of the Law on Finance for the year 1995. In Phnom Penh, this tax is not assessed based on the true transacted value of the property but based on a schedule of price of property determined by the Phnom Penh Municipality.

The assessed value is usually based on the total number of square meters, the land’s location, use etc. The tax is not based on the actual price for which the land is sold, rather it is based on the assessed value. For the land of more that 1200m² , the surplus is subject to unused land tax. For the land less than 1200m² , the unused land tax is not applicable. The time for the tax office to complete the calculation of transfer tax will depend on the location of the land and its size.

Step 6: Return to Cadastral office to complete the registration process

Completion Time Frame: 5 days
Completion Costs: Cadastral service paid in Step 4
Points to Note:
After taxes are paid the parties return to the cadastral office at the MLMUPC and sign/thumbprint a MLMUPC form for buying/selling real property that was filled in by MLMUPC official. The signing/thumb printing will be witnessed by a local authority such as commune chief who will also thumbprint. These procedures are based on Land Law Arts. 65, 244 and 245.

Land Law Art. 69 bars transfer unless all necessary taxes are paid.

The documentation shall include:

Payment receipts of transfer tax (obtained in Step 5)

Step 7: Obtain the Certificate of Title from the Municipal Land Office

Completion Time Frame: At least 30 days
Completion Costs: Already paid in Step 5
Points to Note:
The Khan/District land office forwards all the “transfer documents” to the Municipal Land Office where it issues the Certificate of Title in the new owner’s name and has it registered.

The last procedural step in practice can take several weeks, depending on the diligence of the land officials and interested parties.