Obtain information on the property from the District and Commune Council Officials
Agency: District and Commune Office
The land purchaser may contact the village chief or the district and commune council officials to obtain information on the land in addition to an official search at the municipal land office. Law does not require this procedure, but it is an additional step to verify that there are no liens or other encumbrances affecting the property object of the transaction.
Time and cost: 10 days, no charge
Obtain the certificate of incorporation of the seller’s company at the Ministry of Commerce
Agency: Ministry of Commerce
If the landowner is a legal entity, the buyer should obtain a copy of the ID of the shareholder or person acting on behalf of the company, and a certified/notarized copy of the certificate of issued by the Ministry of Commerce. These documents are needed to verify the accuracy and identity of the company name appearing on the title certificate. A Power of Attorney is also required, 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. The law doesn’t require this procedure but it is carried out in practice to verify information of the seller.
Time and cost: 10 days, KHR 80,000
The buyer verifies the title certificate with the Land Office, checking for potential liens or encumbrances
Agency: Land Office (District Level, Office of the Ministry of Land Management, Urban Planning & Construction)
The buyer should obtain a copy of the initial title certificate from the seller and verify proper ownership, ensuring that the seller is the rightful owner of the title certificate. The buyer checks the title certificate with the land office (it is also possible to start this procedure at the Land Department at the Provincial level) to ensure that there are no liens, mortgages or other encumbrances registered for that property.
Official cost and time according to the Prakas 995 dated December 28th,2012 on public service at Ministry of Land Management, Urban Planning and Construction
Time and cost: 4 days, KHR 50,000
Apply for registration at the District Land Office of the Ministry of Land Management, Urban Planning & Construction (MLMUPC)
Agency: Land Office, (District Level, Office of the Ministry of Land Management, Urban Planning & Construction)
When two 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. The Land office reviews the document, checks the existing land book and sends it to the tax office to calculate the amount to be paid for the Transfer Tax. Before that, the tax office will send their staff to the field to evaluate the property. They have to inspect the property and assess its value. After the inspection, the tax office will ask the buyer to pay the transfer tax.
In order to complete this procedure, a cadastral transfer fee of KHR 600,000 is paid to MLMUPC.
The documentation shall include the company’s statute, its Certificate of Incorporation, and Power of Attorney (obtained in Procedure 3). At the time, the original Title Certificate held by the seller must be presented to the Khan (District Level) at the time of signing the deed to have the name of the new owner inserted on the document.
Time and cost: 25 days, KHR 600,000
Pay transfer tax at the Tax Collection Office
Agency: Relevant Tax Department
The seller pays a transfer tax of 4% of the value of the property 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 the 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. For the land of more than 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.
Time and cost: 1 day, KHR 11,397,166.71 (4% of property value (transfer fee))
Return to Cadastral office to complete the registration process
Agency: Land Department (Province Level of the Ministry of Land Management, Urban Planning & Construction)
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. 244 and 245. Land Law Art. 69 bars transfer unless all necessary taxes are paid. The documentation shall include: (1) Payment receipts of transfer tax (obtained in Procedure 5)
Time and cost: 5 days, Cadastral service paid in Procedure 4
Obtain the certificate of title from the Municipal Land Office
Agency: Land Department (Province Level of the Ministry of Land Management, Urban Planning & Construction)
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. Land Department (Khan level) receives the Certificate of Title.
Time and cost: 13 days, Already paid in Procedure 5
