Real Estate Contracts in Cambodia: 7 Must-Know Facts to Avoid Costly Mistakes in 2025
Introduction
One of the most overlooked yet critical aspects of any property transaction is the real estate contract.
In 2025, understanding real estate contracts in Cambodia isn’t just smart—it’s essential. A poorly structured contract can lead to legal disputes, financial loss, or even complete forfeiture of property rights. This guide explains everything you need to know—clearly, thoroughly, and in business-savvy terms—so you can sign with confidence and safeguard your investment.
What Is a Real Estate Contract in Cambodia?
A real estate contract in Cambodia is a legally binding agreement between two parties—typically a buyer and a seller—for the purchase, lease, or transfer of property. These contracts must comply with Cambodian Civil Code and Land Law, particularly if the deal involves a foreign buyer or investor.
There are different types of contracts depending on the nature of the transaction:
- Sale and Purchase Agreements (SPA)
- Lease Agreements
- Promissory Sales Contracts
- Option to Purchase Contracts
- Joint Venture Contracts (commonly used by foreign investors via local nominees)
1. Why Real Estate Contracts Matter More Than Ever in 2025?
Cambodia’s real estate market has evolved rapidly in recent years, and foreign ownership remains tightly regulated. According to the Ministry of Land Management, property transactions involving foreign nationals increased by 22% in 2024. This surge has led to increased scrutiny of contracts by authorities and legal firms.
A clear, well-drafted contract helps:
- Prevent misunderstandings and disputes
- Define payment schedules and penalties
- Clarify obligations of each party
- Protect your interests under Cambodian law
2. Are Contracts Legally Enforceable for Foreigners?
Yes—but only if done correctly. Foreigners must ensure their contracts are:
- Drafted in Khmer (the official language) with certified translations
- Signed by both parties before a notary or legal witness
- Registered (if applicable) at the Cadastral Office or Ministry of Land Management
Pro Tip: Always work with a qualified Cambodian lawyer who understands both local and international real estate law.
3. Key Clauses Every Cambodian Property Contract Must Include
To ensure legal validity and avoid financial pitfalls, real estate contracts in Cambodia should include:
| Clause | Why It Matters |
| Identification of Parties | Must clearly name both buyer and seller with full documentation |
| Property Description | Must include legal land title number, boundaries, and any encumbrances |
| Purchase Price & Terms | Clarifies full cost, deposits, payment schedule, and method |
| Transfer of Title | Specifies when and how title will transfer, including responsible parties |
| Penalties & Dispute Resolution | Defines actions if either party defaults, and how disputes will be resolved |
Avoid verbal promises. In Cambodia, only written agreements recognized by law can be enforced in court.
4. Common Mistakes to Avoid in Cambodian Real Estate Contracts
- ❌ Failing to verify the seller’s legal ownership
- ❌ Omitting a contingency clause (e.g., if the buyer can’t get financing)
- ❌ Relying solely on English-language versions of contracts
- ❌ Not specifying land title type (soft vs. hard title)
- ❌ Ignoring exit or termination clauses
Foreigners especially should avoid nominee arrangements unless vetted by a legal advisor. These structures are often used to bypass land ownership laws, but carry legal and financial risks.
5. Lease Agreements and Long-Term Control
Foreigners often secure control of land through long-term leases (15–50 years). These must be properly registered and detailed to offer protection equivalent to ownership.
Include:
- Lease duration and renewal terms
- Usage rights (e.g., to build, modify, sublet)
- Termination clauses and compensation terms
If you’re leasing for investment, it’s smart to add performance-based clauses or buy-back options to safeguard your interests.
6. Real Estate Contract Checklist for Foreign Buyers
Before signing any Cambodian real estate contract, ensure the following:
✅ The contract is written in Khmer and professionally translated
✅ All land titles are verified (hard title preferred)
✅ Legal boundaries and property maps are attached
✅ Payment schedule and methods are clearly defined
✅ Notarization and registration plans are set
✅ Dispute resolution method is outlined (e.g., arbitration in Cambodia or Singapore)
7. FAQ: Real Estate Contracts in Cambodia
Q: Can I draft a contract myself?
A: It’s strongly discouraged. Use a lawyer to ensure full compliance with Cambodian law and avoid loopholes.
Q: Is notarization required?
A: Not for all contracts, but highly recommended—especially for leases and SPAs involving foreigners.
Q: What if the seller breaches the contract?
A: If the contract includes a dispute resolution clause, you can pursue legal action locally or through arbitration, depending on terms.
Conclusion
Signing a real estate contract in Cambodia is not something to take lightly. With strict land ownership laws, rising foreign investment, and increasing regulation, the risk of error—or being taken advantage of—is real.
But with the right legal support, a solid contract, and proper due diligence, you can safely secure your property and protect your investment. Don’t just sign—strategize, safeguard, and succeed. Whether you’re buying a condo, leasing land, or entering a joint venture—your contract is your armor. Make it bulletproof.
