Condo Ownership Journey in Cambodia: A Step-by-Step Process with IPS

Purchasing a Condominium in Cambodia has never been easier with IPS

In a rapidly evolving real estate landscape, Cambodia offers enticing opportunities for both seasoned and first-time investors looking to expand their portfolio in Southeast Asia. IPS stands at the forefront, simplifying the process of purchasing condominiums in this vibrant market. With comprehensive services ranging from legal assistance to property management, IPS ensures a seamless and secure investment experience. In this article, we will outline the key steps and benefits of investing in condominiums in Cambodia with IPS — highlighting the ease with which foreign investors can own, manage, and profit from their properties.

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Understanding the Foreign Ownership Law

Enacted on the 12th of August 2009 Sub decree 126 on the Management and use of Co-owned buildings allows foreign ownership of private units in co-owned buildings. This type of ownership is known in Cambodia as Strata Title and it is the only form of property ownership granted to foreign nationals. In effect for 15 years the Law has enabled Foreigners from all over the world to purchase Condominiums in the unique emerging market that is Cambodia. Tried, tested and proven the law allows for no ambiguity regarding Foreign Ownership of Condominiums in Cambodia and allows Foreign Nationals to buy with confidence and surety that their rights to property ownership are protected under the law.

Due Diligence

At IPS we only put forward the best Cambodian Condo’s for sale. Properties built by Developers who have a long and proven track record in delivering state of the art condominiums to meet the needs of the next generation of condo buyers and renters in Phnom Penh and Siem Reap. We de-risk your purchase by only working with the best – developers that deliver beautiful condos with superior designs and finishes. IPS conducts full due diligence on each project and developer before deciding to represent the project. Only those projects that meet our stringent requirements are put forward to our exclusive client list. By representing tried and proven developers we ensure great outcomes for our clients.

Sale and Purchase Agreement

The Sale and Purchase Agreement (SPA) legally binds both developer and purchaser to the transaction. Any and all conditions relating to the sale are dealt with within the SPA and as such careful review and confirmation is required before commitment by both parties. IPS works with our preferred developers during the creation of the SPA for the project to ensure buyers rights are clearly stated and the SPA complies with Cambodian Law. IPS will work through the SPA with individual buyers explaining the commitment and nuances of each clause. The SPA is only signed when both parties have agreed in full. IPS will guide you through the process.

Transferring of Purchase price

Transferring money to IPS’s Client account is very simple. IPS will provide you with all the necessary details for your home bank to process. The provision of the signed Sale and Purchase Agreement to your local bank confirms the reason for the transfer and – apart from any additional identification requirements your local bank may have – the transfer will be enacted upon and should take no more than three (3) working days to be received in the IPS Client Account. The destination currency is USD and will be converted as part of the transfer. When funds are received IPS will provide an account statement detailing the inbound monies and clearly showing any fees associated with the transfer. Most international transfers incur inward SWIFT fees of 0.10% or $10 USD (whichever is higher) and an additional fee up to $60 which is split between the intermediary bank and the final receiving bank.

Execution of Sale

SPA signed, monies in IPS Client Account it’s time to execute the transfer ownership of the property. Transfer of ownership is relatively straight forward with Buyer and Seller signing and thumb-printing the official title transfer document called the ‘Vente Definitive’. The process is witnessed by the local Cadastral officer. The Cadastral officer verifies the transaction with the local commune authority known as the ‘Sangkat’, then the Vente Definitive goes to the General Department of taxation for the calculation of Transfer Tax calculated as 4% of the sale price and confirmed as part of the due diligence process, payment is made and facilitated by IPS. Once confirmed the Vente Definitive is registered at the Ministry of Land Management, Urban Planning and Construction and the original title is issued in the name of the new owner. The buyer is not required to engage after the signing and thumb printing of the Vente Definitive. IPS liaises and manages the whole process with the Cadastral officer.

Establishing Local Bank Account

Working with the leading retail bank in Cambodia – Advance Bank of Asia (ABA). IPS will facilitate the opening of a bank account in the purchaser’s name. The account opening process is straightforward, IPS will liaise with the ABA Account Manager who will meet with the purchaser and discuss the various account options. The most popular account being a Savings account with VISA or Mastercard. Allowing the purchaser to access their funds anywhere in the world where Visa or Mastercard are accepted. The annual fee for a standard account is $5 USD per annum and competitive interest is paid on your deposit. The account will be in US Dollar currency.

Preparing the property for Lease

As the leading real estate agency in Cambodia with over 15 years of experience IPS knows what the market wants. We work with the purchaser to ensure the property is market ready. We advise owners on how to maximize their return on investment through creative and durable solutions for furnishings, fittings and equipment. When your property stands out in the market, it is tenanted.

Tenant Sourcing

Utilizing our extensive network IPS brings premium tenants to your property. Providing property sourcing and relocation services for local and international business with operations in Cambodia, IPS has an extensive client list of in-bound expatriate staff on the hunt for the perfect home. Our in-house marketing capability is second to none, we provide professional videography and photography free of charge to all our managed properties, promoted through our website and social media channels ensuring your property is viewed by thousands of active house hunters in the local and international rental market.

Ongoing Management & Remittance

Communication is the cornerstone of our Property Management (PM) solution at IPS-Cambodia. What sets IPS apart is our dynamic PM team who provide basic repairs and services as part of our normal monthly fee – no charges for minor works delivered in-house, management of external contractors for major repairs and no margins applied when sourcing replacement furniture, fittings and equipment. We manage and deliver preventative maintenance programs for individual apartments minimizing breakdowns and ultimately disruption for your tenants. We strive to deliver your investment as a passive one by delivering solutions wherever possible. We provide monthly reporting to all owners with net rents banked directly to your ABA bank account which can be accessed worldwide through your Visa/Mastercard account.

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Discover the Best of Cambodia: Premier Condo Developments in Phnom Penh and Siem Reap

With Cambodian real estate showing unparalleled investment opportunities, we’re excited to showcase standout condominium developments from our curated collection, combining unbeatable comfort, elegance, and potential for high returns. Check out the latest developments in Cambodia below or connect with one of our property consultants to personalize your investment options!