Cambodia real estate glossary

The Cambodian market uses terms that many foreign buyers have never dealt with before: strata title, foreign quota, sinking fund, GRR. Here we explain each of them the way we would in a consultation — with caveats and notes on what exactly to verify in the documents. Every term has a direct anchor link, so the glossary works as a reference while you read our articles and project pages.

Terms: Strata title · Hard / Soft title · Freehold / Leasehold · Co-owned building · Foreign quota · SPA · Reservation fee · Handover · Sinking fund · Management fee · Gross / Net area · GRR · Buyback (GBB) · Assignment · Presale / Off-plan · Total return · Gross yield · Net yield · Effective price · Snag list · Render · Evidence state · Conflict · Not found

Critical terms — check before payment and signature

A few concepts directly affect the safety of your money and rights. For each, what to check in advance:

• Strata title — whether your specific unit can be registered to a foreigner.
• Foreign quota — whether the building's foreign quota is already used up.
• SPA — what is actually fixed in the contract, not the presentation.
• Reservation fee — refundability and the deadline to move to the SPA.
• GRR and buy-back — who is the guarantor, the base, term and breach consequences.
• Total return — this is not net profit.
• Effective price — the real deal cost after discounts.
• Evidence state and "not found" — what a field's value is based on.

Strata title

The form of ownership for an individual unit (apartment or office) in a registered co-owned building. Strata title is what allows a foreigner to directly own property in Cambodia — but only a unit above the ground floor and within the building's foreign quota. The land under the building does not pass into foreign ownership. Before booking, verify that the project has (or will issue) an actual strata title rather than an alternative structure. A detailed breakdown is in our article on strata-title in Cambodia.

Hard title / Soft title

Two levels of property-rights registration in Cambodia. A hard title is registered at the national level with the land registry: the most protected option, recognised directly by the state. A soft title is registered at the local level (commune or district): historically common and cheaper to issue, but weaker protection in a dispute. Strata title for condominium units is a form of national-level registration. When buying, understand exactly which title you will receive and when.

Freehold / Leasehold

Freehold is perpetual ownership. Leasehold is a long-term lease (in Cambodia usually up to 50 years with renewal options) where the land or property remains owned by another party. A foreigner in Cambodia can hold freehold on a unit via strata title; freehold on land is not available to foreigners — land involves leasehold or structures with Cambodian participation, each of which requires its own legal review.

Co-owned building

The legal status of a condominium in which private units belong to individual owners while common areas (lobby, lifts, roof, utilities) are held in shared ownership by all owners. Strata title for a unit can only be issued in a registered co-owned building. If a building does not have this status, "buying an apartment" may legally mean a very different arrangement — verify this before transferring any money.

Foreign quota

The statutory cap on the share of a co-owned building that foreigners may own (typically up to 70% of the private units, excluding the ground floor and underground levels). If the quota in a specific building is exhausted, a foreigner cannot register ownership of a unit even after signing a contract. Before booking, ask the project to confirm that the quota still allows registration of the unit to a foreign buyer. More on foreign ownership rights and strata title in "Can a foreigner buy property in Cambodia".

SPA (Sale and Purchase Agreement)

The sale and purchase agreement — the core document of the transaction between the buyer and the developer. The SPA fixes the price, payment schedule, completion deadlines, delay penalties, termination terms and all income or buyback programmes. The simple rule: legal force belongs to what is written in the SPA, not in the presentation or the ads. We recommend an independent legal review before signing. A full clause-by-clause breakdown with a green / yellow / red rating is in the SPA review; the full process is described on the "How buying works" page.

Reservation fee

The first payment that reserves a unit for the buyer before the SPA is signed (on the Cambodian market usually from a few hundred to a couple of thousand dollars, depending on the project). Check the reservation terms: whether the fee counts toward the price, whether it is refundable if you withdraw, and the deadline for signing the SPA. Terms vary from project to project — clarify before paying.

Handover

The moment the developer completes construction and hands the unit over to the buyer. The final payment (handover balance) is usually tied to handover, after which the buyer receives the keys and title registration begins. If you are buying on an installment plan, calculate in advance how much cash this stage will require — in many plans it is a significant share of the price. More on payment schedules in our guide to developer installment plans.

Sinking fund

The building's reserve fund — a one-off or periodic owner contribution for capital needs: facade repairs, lift replacement, major utility works. It is usually paid at handover and calculated per square metre of the unit. This is a separate cost on top of the purchase price — include it in your full cost of ownership and confirm the rate for the specific project.

Management fee

The regular (usually monthly) charge for building operations: security, cleaning of common areas, pool and utilities maintenance. It is charged per square metre of the unit; the rate depends on the project class and the management company. When calculating rental returns, the management fee is deducted from income — keep this in mind when comparing gross and net yields.

Gross area / Net area

Gross area includes a share of common areas, walls, and sometimes balconies with a coefficient. Net area (carpet area) is the actual internal area of the unit. The difference can reach 15–25%. Marketing prices per m² are almost always quoted on gross — when comparing projects, recalculate to net, otherwise the comparison is misleading. Request both figures from the project before booking. A breakdown of how area is measured and re-calculated is in the gross vs net area guide.

GRR (Guaranteed Rental Return)

A rental income programme from the developer: the developer pays a fixed annual percentage of the unit price for an agreed period, regardless of actual occupancy. An example from our catalogue: GRR 8% net for 5 years on Odom Tower. Important: GRR is a contractual obligation of a specific developer, not a property of the market. Check in the SPA: the calculation base, gross or net, who the guarantor is, the payout schedule and early-termination terms. The programme is only as reliable as the party promising it.

Buyback / GBB (Guaranteed Buy Back)

A contractual obligation of the developer to repurchase the unit at a pre-agreed price after a set period (example: 110% of the purchase price after 5 years). Combined, GRR + GBB can produce a total return of around 150% of the invested amount over 5 years — but that is the total return (principal + rent + buyback premium), not profit. The net profit above the invested amount in this example is around 50%. Do not mix these two figures up. Buyback terms, like GRR, exist only in the contract with the developer. How these programmes relate to market rent and price growth is covered in guaranteed rent and buyback.

Assignment

Selling your rights under the SPA to another buyer before handover — exiting the deal without waiting for completion. Whether assignment is allowed, the developer's re-registration fee and any restrictions (for example, a minimum share of the price already paid) are set by the specific project's contract. If the option to exit before completion matters to you, check the assignment terms before signing the SPA, not after.

Presale / Off-plan

Buying during construction (or before it starts) at prices below completed stock, usually with a developer installment plan for the construction period. The upside is the entry price and a flexible payment schedule; the downside is construction-delay risk and the fact that you are buying from renders, not a finished building. Assess the developer's track record: how many projects it has actually delivered and on what timelines. Completed alternatives exist too — for example, Le Condé BKK1.

Total return

The sum of all payments and returned capital over a period under a stated scenario. The key caveat: total return is not net profit. Separate the original capital, costs, taxes and any unfulfilled assumptions. Example: "150% over 5 years" under GRR + buyback is a total return, while the net profit above the invested amount here is around 50%. How to read yield honestly — in the investor guide.

Gross yield

Gross rental income divided by a stated value base — before costs and tax. Always show the period, the price base (what value it is measured against) and the source of the achieved rent. Gross yield looks higher than net because it ignores the management fee, vacancy, repairs and tax. Comparing yields — in the investor guide.

Net yield

Yield after an explicitly listed set of costs and taxes under a specific scenario. The word "net" is meaningless without the list of deductions, the period, vacancy and the value base — clarify exactly what has been deducted. It is net yield, not gross, that should be compared between projects. Breakdown — in the investor guide.

Effective price

A comparable deal cost after stated cash discounts, required packages and other defined adjustments — what lets you compare offers fairly. Do not deduct the advertised value of a "gift" (furniture, appliances) as cash without a verifiable basis. You can calculate it with the effective net price calculator.

Snag list

A dated list of discrepancies found during inspection — with photos, location, responsible party and repair deadline. It is compiled at handover and serves as evidence that defects were recorded. Keep unit defects, common-area defects and separate equipment warranties apart — these are different areas of responsibility. More in our guide to handover, defects and warranty.

Render

An illustrative image of the proposed appearance of a project or unit. A render does not prove actual completion, the view, the materials or the contractual specification — it is a picture, not evidence. How a show unit and a render differ from the delivered property — in show unit vs delivered property.

Evidence state

A label showing what a value is based on: an official document, written confirmation, public claim, secondary source, conflict or "not found". The state describes the strength of a specific item of evidence, not the overall reliability of the project. The full classification is in the Trust Center.

Conflict

A state in which two relevant sources give incompatible values or conclusions. The correct response is to show both versions with dates and sources, not to silently pick the convenient one. Example on the site: a disputed completion quarter on one of the projects. How we handle conflicts — in the Trust Center.

Not found

Confirmation was not found after a documented search. It is not proof of absence and not permission to insert an average. If a field is marked "not found", it must be requested from the developer or seller before the deal. On the methodology — in the Trust Center.