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Hard Title and Soft Title in Cambodia

In Cambodia, and in addition to the land titles ‘Strata Title’ (often referred to as ‘Condo Title’) and ‘LMAP Title’, there are two other main forms of property titles, namely ‘Soft Title’ and ‘Hard Title’. Legally, both can give you freehold status, but the property must be owned by either a Cambodian national or a Cambodian company with majority Cambodian national ownership.


Soft Title

Soft title is the most popular form of ownership and is a commonly issued Cambodian land title, as the transfer taxes and fees are relatively cheaper than a hard title. Soft titles are registered at the local council or district level, and are not recognized at the national level.

The processing time for Soft Title is quicker and easier as well. All the land issued under this title will be legally recognized at a local government level (Sangkats & Khans). For Cambodians, it is considered a valid legal document of ownership in which practically any local bank will accept it as collateral in order to secure a loan. The approval for soft tile transfer can be obtained in about 7 to 10 working days. In Cambodia, more than 80% of land ownership is held under Soft Title. In the event of land ownership being disputed between a Soft Title owner and a Hard Title owner, ownership will be awarded to the Hard Title owner.


Hard Title

Hard Title is a land ownership registered through the national government (the Cambodian Land Management and Planning office). Hard Titles also include detailed information recognised and certified at a national level by the Ministry of Land and the Cadastral Office. It is the strongest and most secure form of property ownership in Cambodia, and, as such, the Ministry of Land of Cambodia gives Hard Title property owners an indisputable right. The approval process for Transfers of Hard Title property takes about 12 weeks and a transfer tax of 4% of the total property value, makes the transfer more expensive compared to Soft Title transfers.

Foreign nationals are constitutionally prohibited from obtaining Hard Titles. By extension, this prohibits foreign nationals from owning land and landed properties in Cambodia, unless as a minority shareholder in a Cambodian registered company.


Further Reading

There is a very good summary of land titles in Cambodia (including LMAP and Strata Title), and a step by step guide to transferring properties in Cambodia at realestate.com.kh

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Posted by Ken
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Although originally from Melbourne, Australia, Ken has lived and worked in nearly all major cities in Australia and, since 2005, SE Asia. He has founded, operated and partnered in companies, partnerships and sole trader businesses in three countries. His particular passion is small business and all of his companies today are based in Thailand and are real estate related.

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