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Dr.  Phalthy  Hap  Venue:  PUC  

Date: February 20-21, 2016 1  

Cambodian  Society  of  Comparative  Law  

Outline  

•  Overview of co-ownership in Cambodia •  The management of condominium

operations •  Challenges

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Overview  of  Co-­‐ownership  in  Cambodia  (1)  

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•  The glossary of the 1992 Land Law defined the co-ownership as the ownership of several persons. With this regard, co-owner may be the owner of indivisible ownership and adjoining ownership (The 1992 Land Law, Arts. 36-43). •  The 2001 Land Law stipulates clearly the meaning of

co-ownership which means “ownership of several persons exercising exclusive rights over certain parts of the property, and the other parts named common parts” (The 2001 Land Law, Arts. 10, 75-85).

Overview  of  Co-­‐ownership  in  Cambodia  (2)  

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•  The registration guidance of co-owned buildings has been available since September 2005 (Instructive Circular on the Registration of Buildings and Parcels of Co-owned Buildings, No.01DNS/AKKD, Sept. 21, 2005).

•  The management and use of co-ownership was set by in August 2009 (Sub-decree on the Management and Use of Co-owned Buildings, No. 126ANK/BK, August 12, 2009). Certificate sample

•  Registration of Private Parts of Co-owned Buildings was available in November 2009 (Proclamation on Establishment and the Use of Document Serving the Registration of Private Parts of Co-owned Buildings, No.262PK, November 30, 2009).

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Overview  of  Co-­‐ownership  in  Cambodia  (3)  

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•  The ideas of managing and registering co-owned buildings and registering private parts of co-owned buildings have led to remarkable decision to grant ownership of private parts of co-owned buildings from the first floor up to foreigners (Law on Granting Ownership over Private Parts of Co-owned buildings for Foreigners, May 24, 2010).

•  The Management of gated community (Borey) has been available since March 2011 (Sub-decree on the Management of Gated Community, No. 39ANK/BK, March 10, 2011).

Overview  of  Co-­‐ownership  in  Cambodia  (4)  

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Meaning of condominium:

1.  “Ownership in common with others,”

2.  “A single real-estate unit in a multi-unit development in

which a person has both separate ownership of a unit

and a common interest, along with the development’s

other owners, in the common areas.”

(Black’s Law Dictionary, 8th ed., 2004)

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Overview  of  Co-­‐ownership  in  Cambodia  (5)  

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•  Condominium has not been defined in any

Cambodian legal regulations. But the term

“condominium” falls under the example of co-owned

buildings.

The  Management  of  Condominium  OperaDons  (1)  

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•  To some extent, there is no difference between managing co-owned buildings and condominiums since condominiums are considered as co-owned buildings.

•  No specific legal regulations governing condominium operations yet, therefore condominium operations seem to be under:   The 2001 Land Law   Sub-decree on the Management and Use of Co-owned buildings,

2009   Law on Granting Ownership over Private Parts of Co-owned

buildings for Foreigners, May 24, 2010   Sub-decree on the Management of Gated Community, March 10,

2011.

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The  Management  of  Condominium  OperaDons  (2)  

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•  Registration of co-owned buildings and land parcels covers:   Land parcels and buildings of the ground floors with more owners of

the private parts.   Land parcels and many storey buildings with common ladders,

premises and roads to private parts.   Land parcels consisting of separate many storey buildings with

various owners.   Land parcels and buildings were formerly owned by one owner but

later on one part or some parts are sold to other parties.

(Instructive Circular on the Registration of Buildings and Parcels of Co-

owned Buildings, No.01DNS/AKKD, Sept. 21, 2005).

The  Management  of  Condominium  OperaDons  (3)  

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•  Co-owned building is the building or construction which consists of various owners living in. Co-owned building includes:   Villa   Semi-villa   Many storey apartment   Condominium   The likes

•  Private parts refer to every part of a co-owned building which is privately occupied and used.

•  Common parts refer to every part of co-owned building which is the subject of use or interest of all co-owners such as premises, ladders, parks, pathway, entrance, party walls, other common places. (Sub-decree on the Management and Use of Co-owned buildings, No.126ANK/BK, August 12, 2009)

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The  Management  of  Condominium  OperaDons  (4)  

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•  Co-owned land parcel is the land portion of a co-owned building that has specific location and size for constructing a co-owned building or existing co-owned building under co-owned building project. It is under the joint management and use of all co-owners. •  Land lot refers to private part connected with

common part of co-owned building. Each land lot has various value depending on the size of private part. (Sub-decree on the Management and Use of Co-owned buildings, No.126ANK/BK, August 12, 2009)

The  Management  of  Condominium  OperaDons  (5)  

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•  Condominium = co-owned building •  Condominium developer:   Owner of the condominium

  Lessee of the condominium

• Owners of private parts • Lessees of private parts

• Lessees of private parts

Private  parts   Common  

parts  

Image  from  Google  garden  

ladder  

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The  Management  of  Condominium  OperaDons  (6)  

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• Co-owners of condominium can prepare an internal rule regulating the obligations and maintenance of the common parts. • Lessees of condominium may be under the

internal rule set by the condominium developer.

Image  from  Google  

The  Management  of  Condominium  OperaDons  (7)  

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•  Foreigners are allowed to own private part of co-owned building starting from the first floor. Those foreigners are considered as special co-owners.

•  With regard to common parts, special co-owners have:  right of use and  right of enjoyment

•  With regard to private parts, special co-owners:  Are entitled to buy private parts from the first floor only

70% of the total co-owned buildings.  Are not entitled to buy private parts of any co-owned

buildings within 30 km from the distance of the border. Image  from  Google  

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The  Management  of  Condominium  OperaDons  (8)  

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• Law on Granting Ownership over Private Part of Co-owned Buildings for Foreigners has the main purposes attract direct foreign investment. • Foreigners may buy lots of units in the

condominium so that the condominium construction may boost faster.

Image  from  Google  

Challenges  (1)  

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• No clear provision concerning condominium leads to vague interpretation.

• Ownership certificate of a land parcel consisting of a co-owned building belongs to a landowner developer.

• Ownership Certificate of a land parcel belongs to a landowner while a developer may hold a certificate of perpetual lease.

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Challenges  (2)  

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Mortgage  

Developer  

Failed  to  pay  the  debt  

Claim  for  the  sale  

Owners  of  each  private  part???  

Image  from  Google  

Challenges  (3)  

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Mortgage  

Developer  

Failed  to  pay  the  debt,  the  developer  escapes  

Claim  for  the  sale  

Owners  of  each  private  part  also  owe  the  bank???  

Incomplete  condominium  

Image  from  Google  

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Conclusion  

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• Granting ownership over private parts from the

first floors to foreigners is a way to absorb more

foreign direct investment.

•  Stipulating clearly the condominium in law will

have a clear stance of condominium operations

thereby attracting more construction investment.

Thank  you!!!  

QuesDons  and  Answers  Contact:

hphalthy@yahoo.com www.phalthy.wordpress.com  

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