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Everything you need to know before buying real estate is included in our Cambodia Property Pack
Buying property in Siem Reap as a foreigner requires navigating Cambodia's strict ownership laws and complex title systems. Foreign buyers can only own strata-titled condominium units above ground floor, with land ownership restricted to leasehold arrangements, company structures, or nominee setups that carry significant legal risks.
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Foreign buyers in Siem Reap can only legally own condominium units above ground floor through strata titles, with comprehensive due diligence essential to avoid costly mistakes.
The purchase process typically takes 2-4 months and involves 4% transfer tax, legal fees of $1,000-$2,000, and deposits of 10-30% of the purchase price.
| Ownership Type | Foreign Eligibility | Key Restrictions |
|---|---|---|
| Strata Title Condos | Yes (above ground floor) | Max 70% foreign ownership per building |
| Land/Houses | No direct ownership | Leasehold or company structure only |
| Long-term Lease | Yes | 50-99 years maximum term |
| Company Structure | Yes | Must be majority Cambodian-owned |
| Nominee Structure | Legally risky | High risk of losing property |
How do foreigners legally buy property in Siem Reap?
Foreigners can legally purchase property in Siem Reap only under Cambodia's restrictive ownership laws that limit direct ownership to strata-titled condominium units above the ground floor.
The most straightforward legal route is buying a condominium unit on the second floor or higher in a building with proper strata title documentation. Foreign buyers can own up to 70% of the total units in any strata-titled building, meaning at least 30% must remain under Cambodian ownership.
Land ownership and ground floor properties are completely prohibited for foreigners under Cambodian law. As of September 2025, there are no exceptions to this rule for direct foreign ownership of landed property in Siem Reap or anywhere else in Cambodia.
Alternative ownership structures include long-term leases (typically 50-99 years), setting up a Cambodian-majority company where Cambodians own at least 51% of shares, or nominee arrangements where a Cambodian citizen holds title on behalf of the foreigner.
It's something we develop in our Cambodia property pack.
What kinds of property can a foreigner actually own or co-own in Siem Reap?
Foreign ownership in Siem Reap is limited to specific types of strata-titled properties with clear legal boundaries and restrictions.
| Property Type | Foreign Ownership Allowed | Ownership Percentage |
|---|---|---|
| Condominium (2nd floor+) | Yes - Full freehold | Up to 70% of building units |
| Ground floor condos | No | 0% |
| Houses/Villas | No direct ownership | 0% (leasehold only) |
| Commercial buildings | Upper floors only | Up to 70% of building units |
| Land plots | No direct ownership | 0% (company/lease only) |
| Serviced apartments | Upper floors only | Up to 70% of building units |
| Mixed-use developments | Residential floors only | Up to 70% of residential units |
What's the first step to check if a property title is clean and legitimate?
The first critical step is hiring a qualified Cambodian lawyer who specializes in property law to conduct comprehensive title verification through official government channels.
Your lawyer will perform a title search at the Ministry of Land Management, Urban Planning and Construction (MLMUPC) to verify the property's legal status, ownership history, and any existing liens or encumbrances. This search reveals the official registered owner and confirms whether the title is genuine.
The verification process includes checking for outstanding debts, legal disputes, court orders, or other claims against the property that could affect your ownership rights. Your lawyer will also confirm that the seller has the legal authority to transfer the property.
Never rely on photocopies or digital images of title documents. Always insist on seeing original title documents and have your lawyer verify their authenticity with the land registry office in Siem Reap.
Professional title verification typically costs $200-$500 USD but can save you from losing hundreds of thousands of dollars on fraudulent or disputed properties.
How do you verify who really owns the land before buying?
Verifying true ownership requires cross-referencing multiple official sources and conducting thorough background checks on all parties involved in the transaction.
Start by requesting the original hard title or LMAP title certificate from the seller and have your lawyer verify it directly with the local land office records in Siem Reap. The registered owner's name on the official government database must match exactly with the person or entity selling the property.
Your lawyer should obtain a current ownership certificate (not older than 30 days) from the land registry office that shows the current legal owner, property boundaries, and any registered claims or mortgages against the property.
For properties owned by companies, request corporate documents showing company registration, shareholder lists, and authorized signatories who can legally transfer property on behalf of the company. Verify that the person signing documents has proper legal authority.
Additional verification steps include checking for any pending legal cases involving the property or its owners through court records and confirming there are no family disputes or inheritance claims that could affect the sale.
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What are the main types of land titles in Siem Reap and which one is safest?
Siem Reap properties operate under different title systems with varying levels of legal security and government recognition.
Hard Title represents the highest level of security and is issued directly by the national government through the Ministry of Land Management. These titles provide absolute ownership rights with full legal protection and are recognized by all courts and financial institutions.
LMAP (Land Management and Administration Project) titles offer very high security as they are GPS-surveyed and state-issued with precise boundary measurements. These titles were created with World Bank assistance and provide excellent legal protection for property owners.
Strata titles apply specifically to condominium developments and allow foreigners to own individual units above ground floor with freehold rights. These titles are essential for legal foreign ownership of apartment units in Siem Reap.
Soft titles are district-level certificates that demonstrate possession but not absolute ownership. These titles carry higher risks as they are not issued by the central government and may not be recognized in all legal proceedings or by financial institutions for mortgages.
It's something we develop in our Cambodia property pack.
What does the standard purchase agreement look like and who drafts it?
The standard purchase agreement in Siem Reap must be drafted by a qualified Cambodian lawyer or licensed real estate agent to ensure compliance with Cambodia's property laws and legal requirements.
A proper purchase agreement includes the exact property description with official land parcel numbers, purchase price in both USD and Cambodian Riel, payment schedule with deposit amounts and dates, and completion timeline with specific milestone dates for document transfers.
The agreement specifies conditions precedent such as title verification, building permits for new constructions, and foreign ownership compliance certificates for condominium purchases. It also outlines each party's responsibilities, including who pays transfer taxes, legal fees, and other transaction costs.
Essential clauses include penalty provisions for contract breaches, dispute resolution mechanisms, and specific procedures for money transfers and document handovers. The agreement must clearly state that the property meets foreign ownership requirements if you're buying as a non-Cambodian.
Your lawyer should include protective clauses that allow you to withdraw from the purchase if title issues are discovered or if the seller cannot provide clear ownership documentation within specified timeframes.
What percentage of the purchase price is usually paid upfront as a deposit?
Standard deposits in Siem Reap property transactions typically range from 10% to 30% of the total purchase price, depending on the property type and seller's requirements.
Condominium purchases usually require 10-20% deposits for existing units, while new development projects often demand 20-30% deposits to secure units during construction phases. Higher-end properties and luxury developments may require deposits up to 30% of the purchase price.
The deposit payment timeline typically involves paying 5-10% when signing the initial sales agreement, followed by the remaining deposit amount within 7-30 days after contract execution. Some sellers accept staged deposit payments over 60-90 days for larger transactions.
Always ensure deposit payments are held in escrow accounts managed by reputable law firms or licensed real estate agencies. Never transfer deposits directly to individual sellers or unverified bank accounts, as this provides no legal protection if deals fall through.
Deposit refund conditions should be clearly specified in the purchase agreement, including circumstances where you can recover deposits if title issues are discovered or if the seller breaches contract terms.
What taxes, fees, and commissions should be expected in the buying process?
Property buyers in Siem Reap face several mandatory costs that typically total 6-10% of the property's purchase price, excluding real estate commissions.
1. **Transfer tax:** 4% of the official property value, paid to the government during title transfer2. **Stamp duty:** Fixed fee of $100-$200 USD for document processing and registration3. **Legal fees:** $1,000-$2,000 USD for lawyer services including title verification and contract drafting 4. **Property registration fees:** $50-$100 USD for official government registration of ownership transfer5. **Translation costs:** $200-$500 USD for official document translations between Khmer and English6. **Due diligence costs:** $300-$800 USD for comprehensive title searches and property inspections7. **VAT (new constructions):** 10% additional tax on new condominium units purchased directly from developersReal estate agent commissions typically range from 1-3% of the purchase price and are usually paid by the seller, though this should be confirmed in writing before proceeding with any transaction.
Annual property taxes apply at 0.1% of assessed values exceeding $25,000 USD, making ongoing ownership costs relatively low compared to many other countries in the region.
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How long does it normally take from signing to receiving the property title?
The complete property purchase process in Siem Reap typically takes 2-4 months from signing the purchase agreement to receiving the final title transfer, though complex transactions may take longer.
The initial phase involves 2-4 weeks for comprehensive due diligence, including title verification, ownership confirmation, and legal document preparation. This period is crucial for identifying any potential issues that could derail the transaction.
Government processing takes 4-8 weeks once all documents are submitted to the Ministry of Land Management, during which officials verify title transfers, calculate taxes, and process ownership changes through official channels.
Final completion requires 1-2 weeks for title document preparation, final payments, and physical handover of property keys and official ownership certificates. Rush processing is sometimes available for additional fees but may not significantly reduce overall timelines.
Delays commonly occur due to incomplete documentation, seller title issues, government office backlogs, or holiday periods when offices are closed. Building in extra time buffer is advisable for important relocation or investment timelines.
What are the common pitfalls with leasehold arrangements or nominee structures?
Leasehold and nominee structures carry significant legal and financial risks that have resulted in many foreign investors losing their properties and investments in Siem Reap.
Nominee structures, where Cambodian citizens hold property titles on behalf of foreigners, are legally questionable and offer no guarantee of protection if the nominee decides to claim actual ownership. Cambodian courts typically side with the registered Cambodian owner in disputes, leaving foreign investors with little legal recourse.
Common nominee risks include the nominee selling the property without permission, using the property as collateral for personal loans, or their family members claiming inheritance rights after the nominee's death. Many foreigners have discovered they cannot enforce nominee agreements in Cambodian courts.
Leasehold arrangements provide use rights but not ownership, and lease renewals are not guaranteed regardless of what initial contracts promise. Property owners can refuse renewal or demand significantly higher lease payments when terms expire.
Long-term leases often contain clauses that favor property owners, including rights to terminate leases for various reasons, restrictions on property modifications, and limited subletting rights that can affect rental income potential.
It's something we develop in our Cambodia property pack.
What mistakes do buyers often make when dealing with "soft titles" in Siem Reap?
Many foreign buyers incorrectly assume that soft titles provide the same legal protection as hard titles, leading to costly investment mistakes and potential property losses.
The most common error is treating soft titles as equivalent to full ownership documents when they actually only demonstrate possession rights issued at district level rather than absolute ownership recognized by national authorities.
Buyers often fail to verify whether soft title properties can be converted to hard titles, assuming conversion is automatic or guaranteed. Many soft title properties have boundary disputes, overlapping claims, or incomplete documentation that prevents hard title conversion.
Financial institutions typically refuse to provide mortgages for soft title properties, limiting financing options and making properties difficult to resell. This restriction significantly affects property liquidity and potential returns on investment.
Many investors purchase soft title properties at prices similar to hard title properties without accounting for the additional risks and limited legal protections. Soft title properties should be priced at significant discounts to reflect their uncertain legal status.
Buyers frequently skip comprehensive legal due diligence for soft title properties, assuming lower purchase prices justify reduced verification efforts. This approach often results in discovering multiple ownership claims or boundary disputes after purchase completion.
How can you avoid scams or misunderstandings when transferring money or signing documents?
Protecting yourself from property scams in Siem Reap requires following strict verification procedures and using secure payment methods with proper legal oversight.
Never transfer money directly to individual sellers or unverified bank accounts. Always use escrow services provided by licensed law firms or reputable real estate agencies that hold funds until all conditions are met and title transfers are completed.
Verify all parties' identities by checking original passports, company registration certificates, and legal authorization documents. Insist on meeting sellers in person at official offices rather than informal locations, and confirm their authority to sell through independent legal verification.
All document signing should occur in the presence of your qualified Cambodian lawyer who can explain each clause and ensure you understand all obligations and rights. Never sign documents you cannot read or that haven't been properly translated into English.
Red flags include sellers demanding immediate cash payments, pressure to sign quickly without legal review, refusal to provide original title documents, or claims that "special arrangements" can bypass normal legal procedures.
Wire transfers should only go to verified business accounts with proper documentation, and you should retain all transfer receipts and legal correspondence. Consider purchasing title insurance if available to protect against hidden title defects or ownership disputes.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Successfully purchasing property in Siem Reap as a foreigner requires careful navigation of Cambodia's complex legal framework and thorough due diligence to avoid costly mistakes.
The key to successful property investment lies in working with qualified legal professionals, understanding title limitations, and following proper verification procedures throughout the entire purchase process.
Sources
- Emerhub - Buying Property in Cambodia as a Foreigner
- BambooRoutes - Cambodia Real Estate for Foreigners
- IPS Cambodia - Can Foreigners Own Land in Cambodia
- Global Property Guide - Cambodia Buying Guide
- Multilaw - Real Estate Guide Cambodia
- Knight Frank - How to Buy Property in Cambodia
- CBRE - How to Buy Property in Cambodia
- Dabest Properties - Land Titles in Cambodia