Summary

A legally qualified foreigner can hold a private unit in a co-owned building in Cambodia. That holding is ownership of the private unit, plus a right to use and enjoy the common areas. It is not ownership of the land parcel where the building sits.

The law that says so is the Law on Providing Foreigners with Ownership Rights in Private Units of Co-Owned Buildings, promulgated on 24 May 2010. The English text is an unofficial translation by the Department of Legislation of the Ministry of Land Management, Urban Planning and Construction. That translation states that Khmer is the only official document, and the English PDF does not print a royal kram number. Sub-Decree No. 82 ANK.BK of 29 July 2010 cites this law as Royal Kram No. NS/RKM/0510/006, dated 24 May 2010.

Article 4 defines the object. A co-owned building is a building or construction in which several owners reside. It consists of parts that are the exclusive ownership of each co-owner, called private units, and other parts that are common spaces for the common use of the co-owners, called common areas. Private units are the parts of the co-owned buildings that are privately and exclusively occupied and used.

What this means for Cambodia

The ownership sentence names one defined class of person. Article 4 defines foreigners as foreign natural or legal persons having no Khmer nationality. It defines legally qualified foreigners separately: foreign nationals who enjoy legal capacity according to Cambodian laws and who have legally entered Cambodia. Article 5 uses the second definition. Legally qualified foreigners have ownership rights in private units of co-owned buildings, and rights to use and enjoy benefits of the common areas. The separate definition of foreigners as natural or legal persons is not that sentence.

An agreed transfer is not effective by itself. Article 8 states that a transfer of special co-ownership by agreement shall not be effective unless it has been registered in accordance with the legal provisions and regulations regarding registration.

What is held is the private unit. Article 6 says this ownership right only provides private units of co-owned buildings for foreigners, and that common areas shall be kept for the common use of all co-owners. Article 15 states that special co-owners shall have only the right to use and enjoy the common areas. Article 4 defines special co-owners as foreigners who enjoy special co-ownership rights. Article 16 states that special undivided ownership, and other marginal rights recognized by law, shall not be subject to division, disposal, and forced sale separate from the private unit. The right over the common areas is not a separate thing that can be sold on its own.

The land parcel is outside that holding. Article 6 states: In any case, the land parcel where the co-owned building is located cannot be subject to the ownership of special co-owners.

Article 6 states the floor limit in these words: Foreigners have ownership rights in private units of co-owned buildings only from the first (1st) floor up. The ground floors and underground floors cannot be owned by foreigners.

The percentage is not written in the 2010 law. Article 6 says a sub-decree shall determine the proportion and percentage of private units that can be owned by foreigners in a co-owned building. Sub-Decree No. 82 ANK.BK of 29 July 2010 deals with that share. ProprKey could not find an official copy of it, so this article does not state the figure; ask for it in writing and check it with a Cambodian lawyer.

The border limit is the full sentence in Article 6, exceptions included: Foreigners are not authorized to acquire ownership rights in private units of co-owned buildings located within 30 (thirty) kilometers of the land borders of Cambodia and in other areas determined by the Royal Government, except for the co-owned buildings located in Special Economic Zones, in important urban areas and in other areas determined by the Royal Government. The sentence does not name cities.

What to do next

  • Confirm the contract is for a private unit in a co-owned building, not for the land parcel under the building.
  • Use the test Article 5 actually states. A legally qualified foreigner is a foreign national who enjoys legal capacity according to Cambodian laws and who has legally entered Cambodia.
  • Ask which floor the unit is on. Foreign ownership of a private unit runs only from the first floor up. Ground floors and underground floors cannot be owned by foreigners.
  • Ask what share of the building's private units foreigners already hold. Article 6 leaves the cap to a sub-decree, so get the current limit confirmed by a Cambodian lawyer.
  • If the building is within 30 kilometers of a land border, apply the full Article 6 sentence, including the exceptions for co-owned buildings in Special Economic Zones, in important urban areas, and in other areas the Royal Government determines.
  • Do not treat a transfer by agreement as effective until it has been registered. Article 8 states that condition.
  • Treat the Khmer text as the official law. The English copy of the 2010 law says Khmer is the only official document.
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