How a Cambodian Developer Hands Condominium Management Over to Owners

Prepared by the NovAsia Editorial Team

After a condominium opens, the developer often continues managing it through a subsidiary or related company.

That company hires security, collects service charges, signs lift and pool contracts, responds to complaints and controls technical rooms.

During the first operating years, this can be sensible.

The developer understands the systems, is still resolving construction defects and may subsidise the budget while occupancy grows.

A temporary arrangement can easily become permanent.

Years pass, while owners still do not know:

• where their money is held;
• who selected suppliers;
• how much reserve remains;
• why the manager cannot be replaced;
• where the as-built drawings are;
• whether warranties are still valid.

The building appears to have professional management.

The co-owners do not actually control the common property they are expected to finance.

A genuine management handover is not a ceremony and not a new logo on invoices.

It is the transfer of:

• governance;
• information;
• money;
• contractual rights;
• technical records;
• operational control.

This article provides general information, not legal, accounting, engineering or property-management advice. The management structure, voting, bank arrangements, contracts and developer obligations should be checked under the documents of the specific building.

Cambodian law requires an owner management structure, not one universal handover date

Sub-Decree No. 126 requires the developer to prepare internal regulations before private units are offered for sale or lease.

For management of a co-owned building, co-owners are expected to create a management board or executive committee in accordance with those regulations.

The sample regulations indicate that a building with at least five co-owners should have a management organisation. The general meeting appoints the board or executive committee and defines its powers. Decisions are linked to co-owner shares.

This creates a legal foundation for owner governance.

The available framework does not create one automatic transition formula such as:

• after 50% of units are sold;
• twelve months after handover;
• when the last developer unit is sold;
• after all titles are issued;
• after a fixed occupancy threshold.

The timing and process therefore need to be established through:

• project documents;
• internal regulations;
• owner decisions;
• management agreements;
• transition arrangements.

Where the SPA is silent, the transition often becomes a matter for negotiation.

Governance and daily operations are different

Co-owners do not need to repair pumps or run payroll themselves.

The key distinction is between governance and operations.

Governance includes

• approving the budget;
• selecting the manager;
• controlling contracts;
• deciding on common areas;
• setting reserve policy;
• approving major work;
• amending internal regulations;
• commissioning audits;
• managing complaints;
• setting strategy.

Operations include

• security;
• cleaning;
• engineering;
• collection;
• procurement;
• staffing;
• inspection;
• emergency response;
• accounting;
• routine reporting.

The owner board performs governance.

A professional management company performs operations.

A developer-affiliated manager can remain after turnover if the board has real power to:

• approve the agreement;
• inspect accounts;
• change the scope;
• review conflicts;
• terminate the contract;
• appoint a replacement.

If the company cannot be removed, it is not simply a normal service provider.

The handover begins by defining the asset being managed

A complex development may include:

• one tower;
• several towers;
• podium;
• hotel;
• retail;
• parking;
• shared roads;
• future phases;
• central utilities;
• common plant.

The management boundary should match:

• the co-owned parcel;
• common-area plan;
• titles;
• internal regulations;
• shared-facility agreements;
• phase structure.

Otherwise, the owner board may accept liabilities without understanding the assets.

For example, a generator may sit inside the hotel component but supply the residential tower.

Questions then include:

• Who owns the generator?
• Who pays for replacement?
• Can the hotel operator suspend service?
• What happens if the hotel is sold?

The transfer package should include an asset register and the legal basis for using each shared system.

Internal regulations are the building’s constitution

The developer must prepare internal regulations before sales.

After registration and occupation, those rules become the operating foundation for relationships between co-owners.

They should cover:

• private and common areas;
• voting shares;
• expenses;
• meetings;
• board powers;
• manager powers;
• use restrictions;
• repairs;
• payment;
• enforcement;
• amendment;
• transfer obligations.

Before turnover, owners should verify that the document reflects the completed building.

Common discrepancies include:

• amenities changed;
• parking structure changed;
• new phases added;
• manager powers expanded;
• tariff calculated differently;
• common rooms used by the developer;
• share schedule not updated.

Owners should not simply accept an old template that no longer describes the final property.

The first general meeting should make real decisions

The first owner meeting should not be a developer presentation.

It should decide matters such as:

• board membership;
• term of office;
• authorised signatories;
• management agreement;
• bank accounts;
• budget;
• reserve;
• audit;
• insurance;
• arrears;
• defect schedule;
• supplier contracts;
• transition timetable;
• access records;
• future meeting calendar.

Owners should receive the agenda and supporting documents in advance.

Where overseas owners participate remotely, the internal regulations should support valid proxy or remote participation to the extent allowed.

Because major decisions are linked to owner shares, the owner register and share schedule should be checked before the vote.

A sales spreadsheet should not be used as the voting register where reserved or incomplete units have uncertain legal status.

Developer-owned units create a governance conflict

If the developer retains unsold inventory, it may remain a major co-owner.

That can produce substantial voting power.

The developer may vote on:

• its related management company;
• budget;
• service-charge formula;
• supplier contracts;
• internal regulations;
• use of common areas;
• transition timing.

Its participation is legitimate where it owns the units.

The conflict appears because the developer may simultaneously act as:

• seller;
• service-charge debtor;
• manager;
• contractor;
• landlord;
• board controller.

A stronger governance system uses:

• conflict disclosure;
• market comparison;
• transparent procurement;
• recusal where legally and contractually appropriate;
• independent owner representation.

Bank control is the centre of real governance

A board without access to bank information does not control the building.

The handover should identify:

• bank;
• account name;
• legal owner;
• currency;
• balance;
• authorised signatories;
• online access;
• client money;
• reserve;
• deposits;
• reconciliation;
• outstanding cheques;
• restricted funds;
• developer advances;
• related-party payments.

Service charges should not continue flowing into the developer’s general operating account after turnover without a clear agency or management arrangement.

Possible structures include:

• account of the co-owner management organisation;
• client-money account operated by the manager;
• controlled account requiring board authority;
• separate operating and reserve accounts.

The legal form depends on the building and banking arrangements.

The essential features are separation and accountability.

The opening balance must be reconciled

A developer may say:

We are handing over a reserve of USD 100,000.

The board should see the full reconciliation.

Possible sources include:

• service charges collected;
• sinking fund;
• penalties;
• parking;
• commercial income;
• interest;
• developer subsidy;
• utility deposits.

Possible uses include:

• operating deficit;
• repairs;
• equipment;
• insurance;
• prepaid contracts;
• related-party services.

A proper opening balance sheet should show both assets and liabilities.

USD 100,000 in cash can coexist with USD 150,000 of unpaid bills.

Cash alone is not a clean opening position.

Arrears must transfer with evidence

The new board should receive more than one headline number.

For each outstanding owner account, it should receive:

• unit;
• owner;
• billed amount;
• payments;
• ageing;
• notices;
• disputes;
• settlement;
• legal action;
• exemptions;
• developer units;
• supporting invoices.

A reported arrears balance may include amounts that are:

• incorrect;
• disputed;
• billed before handover;
• unsupported by contract;
• related to developer units;
• already paid but unreconciled;
• unlikely to be recovered.

The quality of receivables matters more than the nominal total.

Weak collection can force management to cut spending on lifts, pumps and fire systems.

Supplier contracts should not continue indefinitely without review

Before owners appear, the developer signs contracts for:

• security;
• cleaning;
• lifts;
• fire systems;
• pool;
• landscaping;
• waste;
• pest control;
• internet;
• software;
• insurance brokerage;
• accounting;
• property management.

The handover package should disclose:

• parties;
• scope;
• price;
• term;
• renewal;
• termination;
• deposit;
• warranty;
• liability;
• related-party status;
• open claims.

Particular attention should be paid to long lock-in agreements signed immediately before turnover.

The board should have a reasonable opportunity to review and tender contracts.

Immediate cancellation of every supplier can also be dangerous.

The building needs continuity for critical services.

A transition calendar is required.

Technical records have monetary value

Without drawings and manuals, the new manager remains dependent on the developer.

The handover should include:

• approved plans;
• as-built drawings;
• MEP drawings;
• single-line electrical diagrams;
• fire-system plans;
• plumbing;
• pumps;
• drainage;
• lift documentation;
• generator manuals;
• access-control systems;
• CCTV;
• pool systems;
• commissioning records;
• testing certificates;
• maintenance schedules;
• spare parts;
• asset register.

Files should be searchable and usable, not only paper scans.

A correct as-built drawing can save days of investigation after a concealed pipe leak.

Missing documentation makes every repair more expensive.

Warranties must remain usable

The developer may hold warranties from:

• contractor;
• lift supplier;
• pump manufacturer;
• waterproofing company;
• facade contractor;
• fire-system installer;
• generator supplier;
• access-control provider.

The board should know:

• beneficiary;
• start date;
• expiry;
• covered defect;
• notice procedure;
• maintenance conditions;
• approved service company;
• exclusions;
• open claims.

Where the warranty is issued only to the developer and cannot be assigned, the owner board may lack standing to claim.

Possible solutions include:

• assignment;
• direct undertaking;
• continuing developer support;
• authorised claim procedure.

Notice deadlines should not be lost during the transition.

Defect handover and management handover are separate

The building can move to owner governance while construction defects remain unresolved.

The turnover document should not waive those defects automatically.

A separate schedule should identify:

• common-area defect;
• responsible party;
• status;
• target date;
• retention;
• expected cost;
• expert report;
• access;
• warranty;
• dispute procedure.

Owners should not automatically use service-charge money to correct original non-conforming work.

Normal wear after operation is different.

A leaking pool caused by defective waterproofing may remain a developer issue.

Replacing filters after ordinary use is an operating cost.

Insurance should continue without a gap

At the transition date, owners should check:

• insurer;
• policyholder;
• insured property;
• policy period;
• premium status;
• claims;
• deductible;
• lender;
• renewal;
• contact;
• pending endorsements.

A policy held in the developer group’s name may not automatically continue after restructuring or transfer.

The new board should arrange renewal or novation before expiry.

Management should not wait until the last day to determine the correct rebuilding value.

Keys and digital credentials are part of asset control

The handover includes more than physical keys.

It should cover:

• plant rooms;
• roof;
• pump rooms;
• electrical rooms;
• fire-control room;
• servers;
• CCTV passwords;
• access-control administrator rights;
• smart locks;
• software licences;
• email accounts;
• websites;
• owner database;
• contractor portals;
• utility accounts;
• emergency phone numbers.

If a former developer employee remains the only CCTV administrator, the transfer is incomplete.

Passwords should be changed through a controlled process without interrupting operations.

Staff do not automatically belong to the building

Security, technicians and cleaners may be employed by:

• developer;
• management subsidiary;
• contractor;
• building organisation.

The board should understand:

• employer;
• employment contracts;
• salary;
• benefits;
• accrued leave;
• severance;
• training;
• licences;
• liability.

A new manager may need to transfer staff or hire replacements.

The chief engineer may hold critical knowledge.

Losing that person without technical records creates immediate risk.

Utility accounts need a separate cut-off

Electricity, water, internet and waste contracts may still be in the developer’s name.

The handover should include:

• meter numbers;
• deposits;
• arrears;
• tariff;
• submetering;
• common consumption;
• private consumption;
• supplier;
• account holder;
• access credentials.

Closing readings should be fixed at the handover date.

Construction consumption should not remain inside the owners’ account.

In a multi-phase development, utility separation is particularly important.

Commercial income belongs in the financial map

The building may earn revenue from:

• parking;
• vending;
• telecom antennas;
• advertising;
• retail contribution;
• storage;
• event space;
• laundry;
• access cards;
• interest.

Before turnover, the developer may have collected those sums.

The board should receive:

• contracts;
• revenue history;
• deposits;
• receivables;
• related cost;
• expiry;
• legal right.

Where common property generates income, the accounting treatment should be transparent.

The developer should not retain common-property income without a clear legal basis.

Owner data must be transferred lawfully and securely

The owner register may contain:

• names;
• passport details;
• contacts;
• titles;
• payments;
• tenants;
• emergency information.

Management transition requires data transfer but not uncontrolled circulation.

A proper data process should define:

• purpose;
• access;
• security;
• retention;
• administrator;
• incident response.

Board members do not necessarily need complete passport files of every neighbour.

The manager needs sufficient information for collection, governance and emergencies.

Audit should occur before acceptance, not after the first deficit

A financial review may cover:

• bank reconciliation;
• income;
• expenses;
• procurement;
• related parties;
• reserve;
• receivables;
• liabilities;
• payroll;
• taxes;
• contracts;
• cash;
• assets.

A technical review may cover:

• equipment;
• maintenance;
• defects;
• warranties;
• compliance;
• expected capital work.

A legal review may cover:

• title;
• internal regulations;
• manager authority;
• supplier contracts;
• insurance;
• litigation;
• shared-facility rights.

Owners do not need a forensic audit of every minor invoice.

Accepting management without an opening balance and asset list is still dangerous.

Developer subsidy should be documented

A new building may operate at a deficit.

The developer may continue providing support after turnover.

The arrangement should state:

• amount;
• duration;
• purpose;
• payment frequency;
• conditions;
• whether it is repayable;
• termination;
• reporting.

A subsidy described as a loan creates a future liability.

A grant should be identified clearly.

Where the developer directly pays staff, the board needs to know the real cost after support ends.

Owners can keep the existing manager

A genuine handover does not require immediate replacement of the developer’s company.

The owner board may decide that the existing manager:

• knows the systems;
• has trained staff;
• benefits from group procurement;
• is handling defects;
• charges a reasonable fee.

A new or confirmed management agreement should then define:

• client;
• scope;
• fee;
• term;
• performance indicators;
• budget authority;
• procurement;
• conflicts;
• reporting;
• client money;
• termination;
• transition assistance.

The company’s role changes.

It ceases to be an internal developer department and becomes an accountable service provider to the owners.

If owners are not ready

Many owners may live abroad.

Quorum can be difficult.

No one wants board responsibility.

Developer management may therefore continue under the documents.

Minimum owner oversight should still be created through:

• interim committee;
• remote participation;
• independent accountant;
• quarterly reporting;
• budget review;
• owner representative;
• fixed transition review date;
• tender rights.

Professional management is necessary.

Owner absence should not eliminate accountability.

Signs of a formal but ineffective handover

Warning signs include:

• board exists but account remains controlled by developer;
• statements are unavailable;
• manager cannot be removed;
• contracts are hidden;
• reserve is unknown;
• developer debts are not recorded;
• drawings and warranties are missing;
• technical rooms remain under developer control;
• voting register is unavailable;
• common income remains with developer;
• minutes do not exist;
• the board was selected informally by the sales team.

A photograph of a folder being handed over does not prove operational control.

The handover certificate should preserve unresolved rights

The management-handover document should list:

• items delivered;
• balances;
• liabilities;
• missing records;
• defects;
• pending contracts;
• transition date;
• responsible parties;
• follow-up;
• dispute process.

Owners should not sign a broad release from all developer obligations where the audit remains incomplete.

Operations can be accepted with reservations.

Examples include:

• bank balance accepted subject to audit;
• warranties still awaiting assignment;
• defects remain developer responsibility;
• drawings remain incomplete;
• utility deposits await reconciliation.

This allows the building to continue operating without sacrificing legitimate claims.

A practical transition timetable

Ninety days before

• form an owner working group;
• collect records;
• verify shares;
• begin audits;
• review suppliers.

Sixty days before

• approve governance;
• identify signatories;
• open accounts;
• confirm insurance;
• review critical contracts.

Thirty days before

• transfer records;
• finalise staffing;
• move passwords;
• prepare utilities;
• update the defect register;
• communicate with owners.

Handover day

• record bank balances;
• read meters;
• transfer keys and access;
• confirm contract status;
• activate authority.

First 30–90 days after

• complete audit;
• correct the opening balance;
• obtain missing warranties;
• tender non-critical services;
• publish the first owner report.

The timing is illustrative.

A complex building may require longer.

Conclusion

Management handover means transferring authority over common property, not requiring owners to operate lifts and pumps personally.

Sub-Decree No. 126 provides for internal regulations and a management board or executive committee created by co-owners.

The available framework does not impose one universal turnover date for every project.

A strong transition must therefore be built through documents.

Owners should receive:

• governance;
• bank visibility;
• contracts;
• warranties;
• drawings;
• access;
• records;
• insurance;
• receivables;
• defect schedule.

A professional manager can remain.

It should remain as an accountable contractor that owners can supervise and replace.

A board without money, information and authority is not genuine owner management.

Sources

1. Royal Government of Cambodia — Sub-Decree No. 126 on the Management and Use of Co-Owned Buildings, 12 August 2009.
2. Kingdom of Cambodia — Law on Providing Foreigners with Ownership Rights in Private Units of Co-Owned Buildings, 24 May 2010.
3. EuroCham Cambodia — Charge Collection in Co-Owned Buildings, including recent White Book material.
4. RICS — Property Agency and Management Principles, effective 1 January 2025.
5. RICS — Service Charge Residential Management Code, 4th edition, effective 7 April 2026, used as comparative professional guidance rather than Cambodian law.

Frequently asked

Must a developer hand condominium management over to the owners?

Sub-Decree No. 126 provides for a co-owned building to be managed through a management board or executive committee created by co-owners under the internal regulations. The available rules do not impose one automatic full operational-handover date for every project.

What should transfer with management?

The package should include bank balances, budgets, supplier contracts, warranties, drawings, access credentials, insurance, the owner register, arrears, maintenance history, defects, reserve information and authority in relation to suppliers.

Can a developer-affiliated company remain the manager after handover?

Yes. Owner governance and continued professional management are compatible, provided the manager works under a transparent contract and is accountable to the authorised owner structure.

What if the owners are not ready to manage the building?

They can appoint a professional manager, but should still create a decision-making body that controls the budget, accounts, contracts and reporting. Owners do not need to maintain lifts and pumps personally.

How can owners tell whether the handover was only formal?

If the owner board cannot access the money, contracts, records, warranties or the power to replace the manager, effective control remains with the developer.