Types of license or permit for real estate business in Cambodia

• Proeksa Meas
• 21 June 2020
• Local News
• 12434 Views

All development business for condominiums, land lots, office buildings, malls and residences for the purpose of selling or leasing long-term (referred to as land or building leases for over 15 years) must be licensed by the Ministry or permitted by the Provincial-Municipal Department.

All real estate development businesses are divided into three categories: 1) residential development building apartments and villas for sale, 2) co-ownership building business referred to as the business of building or construction of condominiums, office buildings and malls, which are owned or occupied by many owners and 3) lot development businesses for sale.

There are two types of real estate developers: the individual real estate developer and the real estate developer as a legal person. An individual developer refers to those businessmen of all types of properties defined above who do business temporarily. Whereas a legal person property developer is defined as a group of people or a company or a real estate agency which runs the business long term.

Any person or company who wishes to run more than 30 apartments or 30 villas for a residential development business or co-owned building, or more than 30 condominium units, or a development lot of more than 10,000 square metres must apply for a license from the Ministry of Economy and Finance.

For any person or company that wishes to run a residential development business or co-owned buildings with a range of 4 to 30 apartments or 3 to 30 villas, or from 4 to 30 condominium units, or a lot under 10,000 square metres must apply for a permit at Provincial-municipal Department of Economy and Finance.

Notably, licenses and permits of residential and co-ownership development business are divided into two types: The Type 1 license or permit is granted to any person or company who has just completed construction and is ready to announce it for sale. A Type 2 license or permit is granted to any person or company who announces a project for sale while working on the construction at the same time.

According to a Prakas No 089 SHV.PRK dated 20 January 2020 on “The Management of Real Estate Development Business,” one license or permit is only available for one development site. If a project of a residential or co-ownership building development business comprises of many development different phases, each license or permit is given only for each phase of the project. Therefore, property development businesses must have a license or permit depending on the type and size of the property development.

Having a license or a real estate development business permit ensures the equality of interests between developers and consumers. This legal fulfilment also contributes to curbing money laundering activities in the sector.