[:en]How to invest in real estate[:]
How to invest in real estate
Lease Terms
The lease agreement is written in Khmer and English if necessary. In case of dispute, the document written in Khmer will be considered as a reference. The signature(s) on the document in Khmer language must be the right thumbprint of the signatories.
To be valid, the lease agreement must:
• Specify the address of the property.
• Specify the name of the landlord and tenant.
• Specify the duration of the lease.
• Specify the dates for all payments (listed one by one).
• Specify the amount of the deposit.
• Include an inventory when renting a furnished property.
• Have at least a copy in Khmer language.
• Show the fingerprints (right thumb) of the landlord, the tenant, and also the fingerprints of a witness of the landlord and a witness of the tenant. Fingerprints here serve as signature.
In the event of an early departure of the tenant without prior specific clause in the lease agreement, the landlord has the right not to return the deposit to the tenant.
The owner has the obligation to return the deposit to the tenant the day of the termination of the lease agreement.
The tenant who is obliged to terminate his contract before the due date loses his deposit.
The owner cannot sell his house or rent it to a third party before the day of the termination of the lease agreement.
Payment delays or defaults can be valid reasons for terminating the contract.
It is simple to rent an apartment or a villa in Cambodia. Concerning the administration, contracts are simple and clear. You will not be asked for other financial guarantees than the security deposit.
The duration of contracts for apartments and villas for residential use varies on average from six months to three years, depending on contract.
AGENCY COMMISSION IN THE CASE OF THE LEASE OF RESIDENTIAL OR COMMERCIAL PROPERTY
The amount currently used is equal to half a month’s rent for residential and one month for commercial premises, whatever the duration of the lease. These Agency fees are charged to the client.
NEGOTIATION WITH THE LANDLORDS
Unlike Western habits, the fact of renovating an apartment rented in a bad condition is never a supported point to get a rent reduction.
In any case, our agents will pay attention to your wishes and will focus their efforts to advise you in the best interest of both parties.
PURCHASE BUSINESS GOODWILL, A BUSINESS IN CAMBODIA
Some useful information: Ask for advice from our agents or a lawyer to help you. Agency offers its customers the opportunity to study the business affairs case by case with the support of Khmer lawyers entitled to appear before the court and can speak French perfectly (They studied in FRANCE). You will not be charged for this service. It will be supported by the agency.
Cambodian landlords are generally reluctant to sign long-term contracts for the properties such as shops, small restaurants or small hotels “guesthouses”. Negotiations can take time and here again, any renovations planned by the future tenant will be very little use to ask for a reduction on the price given, however other arguments can be discussed in terms of the expectations of the owner and tenant. It is the job of the agency to focus its efforts to give full satisfaction to both parties.
Cambodian law does not require small and medium entrepreneurs to publish accounts of their activities. It is then normal in the eyes of Cambodian owners not to disclose accounting information.
Our agency is used to have good relations with the owners. We are able to study each trade and verify the accuracy of some figures announced.
We obtain very precise estimates concerning operating costs and prefer to give the value to the location of the property, its surface, and check if it is adequate with the projects of future tenants in order to give the best advices to the foreign investors.
The legal advice, drafting or revision of contracts, any interventions by architects or engineers in order to gather opinions are free services for our customers and paid by the Agency.
AGENCY COMMISSION IN THE CASE OF A BUSINESS SALE
The agency commission is usually calculated as a percentage of the value of goodwill. It is often limited to 10% for the sales of small and medium businesses. However, it may in some cases be shared between the owner and the future tenant. In this case, 5% are paid by the owner and 5%, by the purchaser.
BUY A PROPERTY IN CAMBODIA, WHAT ARE THE LIMITS FOR FOREIGN INVESTORS?
BUY A PLOT OF LAND
Cambodian law prohibits individuals or foreign corporations to own land in their own name.
However, lease agreements for a period up to 50 years and renewable can be provided to foreign investors
Contact us and we will be happy to provide you more information ,solutions and different telephone numbers of firms or independent lawyers depending on your project.
BUY AN APARTMENT / A CONDOMINIUM IN CAMBODIA
Cambodian law prohibits foreigners to own properties on the ground, land and ground floor. Cambodian authorities validate the transfer of property titles for apartments on the upper floors as well as for condominiums.
Two types of property titles SOFT or HARD TITLE are legal in Cambodia.
The work of our agency is to check the feasibility of transferring the titles, check the identity of the owners, secure the transactions, verify the possibilities of surface extensions etc.
The lawyer of the parties represented or, in the absence of lawyer, a lawyer from the agency will accompany the owner and the buyer in these legal proceedings whose duration can range from 15 days for a SOFT TITLE transfer, up to 6 months for the registration of a transfer from SOFT to HARD or from HARD to HARD title.[:]