How to vet a developer in Cambodia before buying an apartment

Prepared by the NovAsia Editorial Team

Due diligence on a Cambodian property developer should answer five specific questions: does the legal entity exist, is it authorised to develop and sell this particular project, does it control the land, is the construction legally permitted, and does the company have a credible structure for completing the building and transferring the promised unit.

A registered company, an impressive sales office and industry awards do not prove that the developer may sell off-plan apartments. A qualifying co-owned building project requires the relevant Type 2 development licence or permit. The land title, construction permit, mortgages, payment account and Sale and Purchase Agreement must be checked separately.

No licence guarantees completion on time. It confirms that a regulatory process has been followed, but the buyer still takes the performance risk of the specific company and project.

The main layers of developer due diligence

A positive result at one level does not cure a failure at another. A company may be properly incorporated yet lack a valid licence for the project.

Step 1. Identify the exact legal seller

The brand name used in advertising is often different from the legal company that signs the SPA. A development may be marketed under a group brand while the contract is entered into by a separate project company.

The Ministry of Commerce business-registration system should be used to check:

• full registered name;
• registration number;
• date of incorporation;
• current status;
• registered address;
• directors and authorised representatives;
• recorded corporate changes.

The transaction documents should explain the connection between the seller, landowner and payment recipient.

Registration with the Ministry of Commerce proves only that the company exists. It does not prove that it owns the land, has a development licence, is solvent or has no disputes.

Step 2. Check the development licence or permit

Cambodia's real estate development business has been regulated under Sub-Decree No. 50 since 2023, with licensing and permit procedures set out in Prakas No. 047.

Condominium developments fall within the co-owned building development category.

Projects with between 3 and 30 units generally require a permit from the relevant Capital or Provincial Department of Economy and Finance. Projects with more than 30 units require a licence from the Real Estate Business and Pawnshop Regulator, or RPR.

Type 1 and Type 2 authorisation

An off-plan condominium that accepts buyer payments during construction should have a current Type 2 licence or permit.

Check:

• licensed company;
• project name and address;
• licence or permit type;
• number of approved units;
• issue date;
• validity period;
• issuing authority;
• latest renewal;
• whether the authorisation has been suspended or amended.

Under Prakas No. 047, the licence or permit is renewed annually until the project is completed. An old certificate without evidence of current renewal is not sufficient.

Changes to the company, shareholders, directors, project name or building type may require prior regulatory approval.

What a Type 2 licence says about the financial structure

A Type 2 developer licence is subject to regulatory capital and guarantee requirements. The rules provide for minimum capital of at least 20% of construction cost and a business guarantee of at least 2% of the construction cost or relevant phase, usually through a deposit or bank guarantee.

The developer must also open a real estate development account with a Cambodian commercial bank and submit a business plan.

These requirements are useful regulatory filters, but they are not insurance for the buyer.

The business guarantee:

• does not equal the total project cost;
• does not automatically reimburse every buyer;
• does not guarantee an immediate refund;
• is administered under the regulatory framework;
• may be frozen or applied following breaches.

A buyer should verify the current licence and payment structure but should not treat the 2% guarantee as proof that the project cannot fail.

Step 3. Check the land

If the developer does not control the site, or if the land is mortgaged without a clear unit-release mechanism, the future title may be at risk.

An independent Cambodian lawyer should investigate:

• type of master title;
• registered owner;
• parcel number and boundaries;
• whether the title corresponds to the actual site;
• mortgages and security interests;
• long-term leases;
• easements;
• court restrictions or disputes;
• the developer's legal right to use the land.

Official cadastral services can provide information about registered interests, but the documents should be obtained and interpreted by a local professional.

Where the land belongs to another group company

This is not automatically a problem. A parent company or dedicated landholding entity may own the site.

The buyer should establish:

1. The legal basis on which the developer builds and sells.
2. Whether the landowner can terminate that right.
3. Whether the landowner has signed the necessary project and title documents.
4. What happens if the companies dispute or separate.
5. Whether the land can be converted into a co-owned parcel.
6. Which entity is liable to the buyer.

The phrase “it is all one group” is not a legal explanation.

Where the land is mortgaged

A mortgage does not automatically make a project unsafe. Bank financing is common. The key question is how the buyer's unit will be released from the lender's security.

Check:

• identity of the lender;
• assets covered by the mortgage;
• lender consent to sales;
• partial-release procedure;
• amount or milestone required for unit release;
• timing of a clean strata title;
• treatment of buyer payments if the developer defaults.

If the release mechanism is not disclosed, paying a large portion of the price creates additional risk.

Step 4. Check the construction permit

The development licence and construction permit are separate.

The RPR licence authorises development business and sales. The construction permit authorises the physical construction of the specific building according to approved parameters.

Verify:

• issuing authority;
• site address and parcel;
• named project owner;
• approved height and number of floors;
• authorised use;
• approved floor area;
• issue date and validity;
• approved plans;
• later amendments.

A rendering of a 35-storey tower is not evidence if the permit covers a different design.

Cambodia introduced a more structured workflow for construction permits and occupancy certificates in 2026. That may improve administration, but it does not replace checking the actual document for the specific project.

Additional approvals

Depending on scale, height, location and use, a development may also require:

• environmental assessment;
• fire-safety approvals;
• engineering certifications;
• parking compliance;
• utility and infrastructure approvals.

A qualified adviser should confirm that the material approvals belong to the same project, remain valid and correspond to the building actually under construction.

A document in Khmer without translation or legal explanation is not a complete due-diligence result for a foreign buyer.

Step 5. Check the occupancy certificate

A construction permit allows the building to be constructed. A Certificate of Occupancy confirms that a completed building may be legally used.

For a completed condominium, verify:

• whether the certificate has been issued;
• whether it covers the whole building;
• whether the approved use matches the marketed use;
• whether conditions remain outstanding;
• whether inspection requirements have been satisfied;
• whether lawful occupation is permitted.

Keys, residents and a staffed reception desk do not replace the certificate.

For an off-plan project, the SPA should state which party obtains the occupancy certificate, when it is expected and whether handover depends on it.

Step 6. Confirm that individual strata title can be issued

A developer may have a registered company, a development licence and a construction permit, yet the buyer still needs evidence that the selected private unit can receive an individual title.

Check:

• whether the land can be constituted as a co-owned parcel;
• how private and common areas are defined;
• available foreign ownership quota;
• whether the unit is above the ground floor;
• the seller's obligation to obtain the Certificate of Ownership of Private Unit;
• filing and registration deadlines;
• remedies if title cannot be issued.

The relevant question is not whether Cambodian law recognises strata title in general. It is whether this project and this unit can satisfy the requirements.

Step 7. Verify the developer's track record

A list of logos on a website is not a track record. For each completed project, establish:

• the legal developer;
• promised and actual handover dates;
• whether individual titles were issued;
• whether title registration was delayed;
• whether final quality matched the specification;
• how the building is managed;
• how service charges changed;
• whether serious defects emerged;
• whether a genuine resale market exists.

The most useful inspection is often not a new showroom but a building that has been occupied for three to five years. Lifts, façades, waterproofing, drainage and common areas reveal the durability of the construction and management.

Questions to ask existing owners

1. How late was handover?
2. Were unexpected charges imposed?
3. How were defects handled?
4. When was title issued?
5. Would the owner buy from the same developer again?

One negative review proves little. Repeated complaints about the same issue are more significant.

Step 8. Assess the developer's ability to finish the project

Private companies may not publish detailed financial statements. However, the regulatory framework requires licensed developers to submit annual audited financial reports to the RPR.

The buyer can still ask for information on:

• project financing structure;
• developer equity contribution;
• lending bank;
• current construction completion;
• main contractor;
• work programme;
• number of units sold;
• dependence on future buyer instalments.

The absence of bank debt is not always a strength, and the presence of a major lender is not a guarantee. The main concern is a project that relies almost entirely on continuing pre-sales to fund construction.

Monitoring construction progress

Updates should show measurable progress rather than repeated marketing images.

Useful evidence includes:

• completed structural floors;
• façade installation;
• mechanical and electrical systems;
• internal finishing;
• lifts;
• utility connections;
• landscaping and external works.

An engineer or independent representative is more useful than a sales manager for assessing progress.

Step 9. Compare the SPA with the licence and marketing

Sub-Decree No. 50 requires the SPA to cover core matters such as the parties, project, location, unit size, construction period, transfer of rights, liability and materials.

The presence of those sections does not make the contract balanced.

Check:

• whether the seller matches the licensed entity;
• exact unit identification;
• area and price-adjustment mechanism;
• completion and long-stop date;
• consequences of delay;
• limits on design changes;
• defect procedure;
• strata-title deadline;
• termination and refund process;
• assignment rights;
• GRR or buyback terms.

A famous developer does not compensate for a contract that permits indefinite extensions or allows the seller to retain most buyer payments after minor default.

Step 10. Verify the development account

The regulatory framework provides for a real estate development account for payments under the SPA or lease.

Confirm:

• account holder;
• relationship with the seller;
• bank and currency;
• official invoice;
• payment reference;
• treatment of funds under the SPA;
• seller receipt and account statement after payment.

A request to pay a director, agent or employee personally is a major warning sign.

If another group company receives the money, the SPA should state clearly that payment to that account fully satisfies the buyer's obligation.

Checking the agent is not enough

A real estate agency may require its own licence, but a licensed agent does not guarantee:

• the developer's land rights;
• a valid project licence;
• financial stability;
• completion of construction;
• performance of the SPA.

The agent can coordinate documents and communication. The buyer's legal opinion should come from an independent adviser who does not depend on the sale commission.

Remote due diligence

A useful due-diligence report should identify the documents reviewed, dates, unresolved risks, missing evidence and conditions that must be satisfied before payment.

A statement that “everything has been checked” is not a report.

Red flags

Stop or postpone the purchase if:

• the company exists only as a marketing brand;
• the seller has no documented connection to the landowner;
• the Type 2 licence or permit is missing;
• the licence has expired;
• the document relates to another project;
• the construction permit does not match the marketed building;
• the land is mortgaged without a unit-release mechanism;
• payment is requested to a personal account;
• the master title is withheld;
• previous projects did not receive titles;
• construction progress conflicts with reports;
• the SPA has no long-stop date;
• refunds have no deadline;
• GRR exists only in a brochure;
• independent review is discouraged or prohibited.

Core document list

Before a non-refundable reservation, request:

1. Corporate registration documents of the seller.
2. Current Type 2 licence or development permit.
3. Latest renewal.
4. Master land title.
5. Mortgage and encumbrance information.
6. Evidence of the developer's control over the site.
7. Construction permit.
8. Approved project parameters.
9. Occupancy certificate for a completed building.
10. SPA and all schedules.
11. Construction programme.
12. Development-account details.
13. Evidence of completed projects.
14. Main contractor information.
15. Plan and timing for strata-title registration.

A missing document should be linked to a condition: what must be obtained before reservation, first payment, handover or final payment.

Turning due diligence into a decision

Due diligence should lead to action: requesting evidence, amending the SPA, delaying payment, renegotiating price or declining the purchase.

Conclusion

Checking a Cambodian developer is not a search for online reviews or a count of completed towers. It is a review of the legal, financial and contractual chain of the specific project.

For an off-plan condominium, the critical documents include a current Type 2 licence or permit, corporate registration, control over the land, a matching construction permit, a workable treatment of mortgages, the correct development account, measurable progress and an SPA with clear remedies.

A licence reduces regulatory risk but does not guarantee timing or quality. A master title proves the land position but does not guarantee an individual strata title. Completed projects demonstrate experience only after actual completion dates, title issuance and building condition have been checked.

The guiding principle is that payment should follow documentary confirmation that this company has the right and practical ability to build, sell and transfer this particular unit.

This article is for general information only and is not a substitute for individual legal, technical or financial due diligence. Licences, titles, permits and corporate records should be checked immediately before the transaction.

To obtain a project-specific document list and preliminary developer review for a Phnom Penh unit, contact NovAsia Estate with the project name and unit number.

Sources

1. Royal Government of Cambodia — Sub-Decree No. 50 on the Management of Real Estate Development Business, 2 March 2023.
2. Non-Banking Financial Services Authority — Prakas No. 047 on Rules and Procedures for Granting Real Estate Development Business Licences and Permits, 26 September 2023.
3. Ministry of Commerce of Cambodia — official Business Registration system, checked 23 June 2026.
4. Ministry of Land Management, Urban Planning and Construction — cadastral and construction services and 2026 guidance on construction permits and occupancy certificates.
5. Law on Construction 2019 and related rules on construction permits and Certificates of Occupancy.

Frequently asked

How do I check a developer's reliability in Cambodia?

Verify the company's licence and registration, confirm it holds construction and pre-sale permits (including the right to issue strata title), review its portfolio of completed projects, and study the contract terms. For an off-plan purchase the key risk is timing and the developer's obligations, so the track record matters more than a polished render.

What is a pre-sale permit in Cambodia?

It is the document that lets a developer sell units during construction. Without it, sales may be premature. Before reserving a unit, make sure the project holds the required permits, not just marketing materials.

Can I vet a developer remotely?

Yes. Documents, licences and the track record can be requested and checked remotely, while the site visit and meeting are handled by a trusted representative on the ground. This is standard practice for a remote purchase.