The loan process explained

Get a pre-approved loan

Pre-approved loans are particularly helpful when you’re still searching for a property. It provides you with an amount that you can plan your budget around. It also allows you to quickly evaluate whether or not you should purchase a property. Other than that, you also have leverage over other potential buyers who don’t have pre-approved loans.

Property Search

After obtaining pre-approval, it’s best to do your research regarding the market conditions in Cambodia first. Different locations have different real estate climates. So, it would be wise to scout for a location with great potential for your specific purpose. Once you’ve settled in on a location, pick your property. When you manage to find one, check relevant details such as what sort of title the owner has. Note that hard titles are always better than soft titles. You can also check with relevant government authorities such as the Ministry of Land Management if there are any outstanding disputes for the property.

After that, make sure to go visit the property for an inspection.

Negotiations

After your journey towards the perfect property, the only way you will be recognized as the owner of a property is if there is a legitimate agreement that acknowledges this and is signed by both you and the seller.

In order for this to happen, you first have to settle into a price that’s beneficial for both parties. For this process, consider your purchasing budget for the property itself and the after-sales budget for repairs and maintenance.

Purchase And Transfer

Before the agreement is recognized by the state, it has to go through several government agencies first. Here’s how you obtain land ownership from the seller.

The process begins with obtaining the certificate of incorporation from the seller’s company along with the seller’s official documents. You then have to submit an application for registration through the Ministry of Land Management, Urban Planning & Construction’s District Land Office.

After that, you have to pay the transfer tax at the Tax Collection Office. Once these have all been accomplished, you can proceed to the cadastral office to complete the registration process before finally obtaining the certificate of title from the Municipal Land Office.

Home Purchase And Transfer

A deposit is required once a Contract of Sale has been signed by both parties (sometimes called ‘exchanging contracts.’) You won’t yet have access to your home loan, so your deposit will need to come from savings or elsewhere. You may also be able to arrange a deposit bond until settlement.