Cambodia Strata Title: What Foreign Buyers Actually Own

Prepared by the NovAsia Editorial Team

A strata title in Cambodia is a state-registered ownership right over a specific private unit in a co-owned building.

For a foreign buyer, it is the principal way to register a condominium apartment directly in their own name. The unit is identified in the cadastral system, and the transfer becomes legally effective after registration.

A strata title should not be confused with:

• the marketing term “freehold”;
• a developer-issued certificate;
• a reservation form;
• an SPA promising that title will be issued later.

In an off-plan project, the individual title normally does not yet exist. The purchaser initially holds contractual rights under the Sale and Purchase Agreement. A separate Certificate of Ownership of Private Unit should be issued after the building is completed and the registration process has been completed.

A foreign owner holds the private unit and may use the common areas, but does not receive personal ownership of the land beneath the building. The unit must be above ground floor and the total foreign-owned share may not exceed 70% of the building’s private-unit floor area.

Strata title in simple terms

A co-owned building contains two legal categories.

Private units are apartments, offices or other premises assigned to individual owners.

Common areas include entrances, staircases, roofs, shared land, technical systems and other spaces used collectively.

The strata title confirms ownership of one identified private unit. It is not merely a contractual share of a project and not an apartment described only in a brochure.

The practical value of the title is that the apartment becomes a separately registered property. A sale, gift or inheritance updates the legal record for that specific unit.

What should appear on the title?

Cambodia’s co-owned building regulations provide for a register of private units and an ownership certificate for each registered owner.

A title review should cover:

• owner’s full legal name;
• private-unit number;
• floor and location;
• registered area;
• permitted use;
• identifying details of the co-owned building;
• unit share information;
• registration entries;
• mortgages, charges or other encumbrances;
• subsequent amendments.

The project name, unit number and area should correspond across:

• the SPA;
• floor plan;
• handover documents;
• title certificate.

Differences in spelling, floor numbering or area should be corrected before completion.

A scanned copy is not enough for a ready-property purchase. An independent Cambodian lawyer should verify the record with the competent land authority.

Strata title, freehold, leasehold and master title

Strata title versus freehold

“Freehold” is not the official name of a Cambodian private-unit certificate.

In sales materials, it usually distinguishes indefinite ownership from leasehold. The word alone does not prove that an individual title already exists or can legally be issued.

The legally relevant question is:

Will a Certificate of Ownership of Private Unit be registered in the buyer’s name?

A promise of “foreign freehold” without an explanation of the registered instrument is incomplete.

Strata title versus leasehold

Leasehold gives the tenant or lessee a right to use the property for a contractual period. The underlying ownership remains with another party.

A registered strata title does not expire at the end of a lease term.

The financial difference is also important. The resale value of a leasehold may depend on the remaining term and the reliability of renewal rights. A strata-title apartment is not priced through a diminishing lease period.

Strata title versus master title

The master title relates to the project’s entire land parcel.

It does not mean that each apartment is already separately registered. To create strata titles, the development must go through the legal process for a co-owned parcel and private-unit registration.

A developer may hold a valid master title while the individual apartment titles are still future obligations.

Strata title versus soft title

A soft title, local record or historic sale agreement may support a claim of possession, but it is not the same as a registered private-unit title.

Foreign buyers should not purchase an older apartment merely because the seller has occupied it for many years. The building and unit must be legally capable of transfer to a foreign owner.

Why strata title matters especially to foreign buyers

Cambodian law generally prevents foreign individuals from directly owning land. The 2010 foreign ownership law created a specific route for foreign ownership of private units in co-owned buildings.

The foreign owner receives:

• ownership of the unit itself;
• a right to use common areas;
• the ability to transfer the registered unit in accordance with law.

The foreign owner does not receive the same direct land interest that a Cambodian co-owner may hold.

It is therefore inaccurate to say that a foreign buyer owns both the apartment and an ordinary personal share of the underlying land.

Even with that limitation, a strata title is materially stronger than:

• a private lease;
• a nominee holding structure;
• an unregistered side agreement;
• a developer certificate with no cadastral effect.

Floor restriction

The foreign ownership law uses language equivalent to ownership from the first floor upwards while excluding ground-floor and underground units.

Because floor numbering differs by country and project, the safest interpretation is:

A foreign buyer may own a private unit on a level above the ground floor—the level at street or land level.

Projects may use labels such as:

• Ground;
• Level 1;
• Podium;
• Residential Floor 1.

The SPA, approved plans and future title should establish that the selected unit is not legally part of the prohibited ground floor.

The 70% foreign ownership quota

Sub-Decree No. 82 limits foreign ownership to 70% of the total area of all private units in the building.

The quota is based on floor area, not simply the number of apartments.

If 70 out of 100 units have been sold to foreigners, that does not prove compliance because the apartments may have different sizes.

Before reservation, the developer should confirm in writing that foreign quota is available for the selected unit.

Quota also matters on resale. A foreign owner selling to another foreign buyer may need to confirm that the transfer remains within the permitted percentage.

Restriction near land borders

Foreign ownership of private units is restricted within 30 kilometres of Cambodia’s land borders, subject to statutory exceptions for special economic zones, important urban areas and other government-designated locations.

This rule normally has little practical relevance to Phnom Penh, but it should be checked for projects in border provinces.

How a strata title is created in a new development

An individual private-unit title does not arise when marketing begins.

The registration process generally requires:

1. A legally registered land parcel.
2. Lawful development and construction rights.
3. Conversion or registration of the land as a co-owned parcel.
4. Completion of the building in accordance with applicable requirements.
5. Preparation of plans and registration materials.
6. Adoption of internal co-ownership regulations.
7. Registration of each private unit.
8. Issuance of certificates to owners.

Only after the building and private units are properly registered does the buyer obtain the individual title.

An off-plan purchase can therefore be legitimate, but before registration the buyer holds a contractual claim against the developer rather than a fully registered property right.

What protects the buyer before title is issued?

The primary protection during construction is the SPA.

It should require the developer to:

• complete the project;
• deliver the agreed unit;
• register or procure registration of the private unit;
• transfer title within a defined process.

The SPA should address:

• exact unit description;
• obligation to provide title;
• registration timing;
• completion date and grace period;
• consequences if title cannot be registered;
• area variation;
• title and registration costs;
• assignment rights;
• refund rights after material default.

The phrase “title in process” is insufficient. The buyer needs to know which legal steps have been completed and who is responsible for the remainder.

Master title and encumbrances

Even when a development promises individual titles, the land position must be checked.

A lawyer should review:

• registered owner of the master title;
• relationship between landowner and seller;
• mortgages and security interests;
• litigation or restrictions;
• parcel boundaries;
• construction rights;
• mechanism for releasing individual units from security.

A bank mortgage over the development land does not always make the transaction unacceptable. However, the documentation should explain how the selected unit will receive a clean title.

A serious warning sign is a structure where:

• one company signs the SPA;
• another owns the land;
• a third receives the money;
• no documents explain the relationship.

Internal regulations and building management

A strata title gives ownership of the unit, but the owner remains subject to the building’s internal regulations.

Those regulations may govern:

• use of common areas;
• allocation of operating expenses;
• maintenance and repairs;
• voting and management decisions;
• restrictions on owners and tenants;
• the management board or executive committee.

Before purchase, the buyer should obtain:

• internal regulations;
• current service-charge rate;
• calculation method;
• mechanism for fee increases;
• sinking-fund rules;
• rental restrictions.

An unusually low service charge is not always a benefit. Underfunded lifts, façades and engineering systems can damage both rent and resale value.

What can the owner do with a strata-title apartment?

Subject to law and building regulations, the owner may generally:

• occupy the apartment;
• rent it;
• sell it;
• gift it;
• leave it to heirs;
• register a change of owner.

A title does not guarantee mortgage finance for a foreign buyer. Bank lending depends on the institution, property and borrower profile.

It also does not automatically authorise short-term hospitality use. The owner must still comply with building rules and any licensing requirements.

Buying a completed apartment

For a completed unit, the individual title should already exist, or the seller should clearly explain why registration remains outstanding.

The buyer should verify:

1. Original Certificate of Ownership of Private Unit.
2. Registered owner.
3. Unit number, floor and area.
4. Mortgages and encumbrances.
5. Foreign quota.
6. Seller’s authority.
7. Outstanding service charges.
8. Condition of the unit and common areas.
9. Taxes and transfer costs.
10. Procedure for transferring the original certificate.

Full payment against only a photocopy is insufficient. The ownership transfer itself must be registered.

Older buildings

Cambodia has introduced procedures relating to private-unit registration in certain older co-owned buildings constructed before 19 December 1997.

This does not mean that every old apartment automatically became a foreign-eligible strata-title property.

The buyer must still verify:

• registration of the co-owned parcel;
• existence of an individual private-unit certificate;
• transferability;
• foreign ownership eligibility;
• condition and governance of common areas.

A low price may reflect title complexity as much as the physical condition of the apartment.

Remote purchase

Legal due diligence, SPA negotiation and payments can be organised remotely.

However, the representative should have a narrowly drafted power of attorney limited to defined actions.

A remote buyer should arrange:

• independent legal report;
• live video inspection;
• written quota confirmation;
• verified bank details;
• countersigned SPA;
• payment evidence;
• independent handover inspection;
• evidence of title submission and registration.

The power of attorney should not unnecessarily allow the representative to sell, mortgage or receive the owner’s money.

Title and registration costs

In addition to the property price, the buyer may face:

• stamp duty;
• cadastral fees;
• legal fees;
• translations;
• developer administration charges;
• bank charges;
• service-charge commencement costs.

Cambodia’s basic transfer stamp duty is generally 4% of the applicable tax base. Certain qualifying transactions may benefit from temporary relief, but the buyer should not assume eligibility without written confirmation.

The phrase “title included” should explain whether it covers tax, government fees, developer services or only document preparation.

Red flags

Stop or delay the transaction when:

• a sales presentation is treated as evidence of title;
• ownership of the master title is unclear;
• foreign quota is confirmed only verbally;
• a ground-floor unit is sold as ordinary foreign freehold;
• the SPA does not require title registration;
• there is no registration deadline or process;
• encumbrances are concealed;
• area differs materially between documents;
• an unrelated company receives the funds;
• an old apartment is sold only under a soft title;
• the buyer is promised direct land ownership;
• internal regulations are withheld until after payment.

Practical checklist

Before reserving, obtain answers to ten questions.

1. Is the property a private unit in a co-owned building?
2. Is it above ground floor?
3. Is foreign quota available?
4. Who owns the master title?
5. Is the land mortgaged or disputed?
6. Does an individual title already exist?
7. If not, what is the registration process and timing?
8. What happens if the title cannot be issued?
9. Which taxes and fees are payable by the buyer?
10. Which building rules apply after handover?

Agent statements should be checked against the SPA, land documents and independent legal advice.

Conclusion

A Cambodian strata title is not a marketing label. It is a registered Certificate of Ownership of Private Unit.

It enables a foreign buyer to own a specific eligible unit in a co-owned building in their own name and to sell, rent or transfer it in accordance with the law.

The foreign owner does not receive direct personal ownership of the land beneath the building. The unit must be above ground floor, the foreign ownership share is capped at 70% of private-unit floor area, and border-area projects may face additional restrictions.

For a completed building, the buyer should verify the existing title and cadastral record. For an off-plan development, the title is created after construction and registration, meaning the buyer initially depends on the project’s land position, developer reliability and SPA.

The most important question before payment is:

Which state-registered document will be issued in the buyer’s name, for which unit, and through what process?

Until that answer is supported by documents, the words “freehold” and “strata” remain promises rather than completed legal ownership.

This material is for general information only and does not replace individual legal, tax or financial advice. Title, quota, floor level, encumbrances and registration should be checked for the specific property at the transaction date.

To receive a current selection of Phnom Penh apartments eligible for foreign strata title, buyers may request a unit, payment-plan and title-process review from NovAsia Estate.

Sources

1. Council for the Development of Cambodia — Law on Providing Foreigners with Ownership Rights in Private Units of Co-Owned Buildings, 24 May 2010.
2. Royal Government of Cambodia — Sub-Decree No. 126 on the Management and Use of Co-Owned Buildings, 12 August 2009.
3. Royal Government of Cambodia — Sub-Decree No. 82 on the foreign ownership proportion, 29 July 2010.
4. DFDL — Investment Guide to Real Estate in Cambodia 2025 and guidance on foreign condominium ownership.
5. Ministry of Land Management and related legal guidance on registration of private units in older co-owned buildings.