The Real Estate and Mortgage Regulator (NRPC) in Phnom Penh has recently made an announcement regarding several housing development projects. The NRPC has identified four Boreys operating without the necessary licenses, putting potential buyers and renters at risk. This article highlights the importance of verifying key aspects before engaging with developers and offers recommendations for protecting one's interests.
The following Boreys have been identified by the NRPC as operating without licenses:
- Borey TV Star in Sangkat Prey Sor, Khan Dangkor, Phnom Penh
- Borey Try Kim Kour Srov in Sangkat Prek Kampus, Khan Dangkor, Phnom Penh
- Construction of LV apartment in Sangkat Choam Chao, Khan Por Sen Chey, Phnom Penh
- Borey THE ROYAL GARDEN in Sangkat Kraing Thnong, Khan Sen Sok, Phnom Penh
In response to these unlicensed housing projects, the Real Estate and Mortgage Regulator has issued a warning to the public. Potential buyers, sellers, and renters are urged to exercise caution and be vigilant when dealing with these developments. Failure to obtain the necessary licenses raises concerns about the legality, quality, and overall security of the properties involved.
To protect oneself from potential disputes and fraudulent activities, it is essential to conduct thorough investigations and verification before engaging with any developers. The following checklist outlines key aspects that should be confirmed prior to buying a property:
Verify Ownership (a.k.a Title)
Ensure that the property of interest is legally owned by the seller or developer. Request the official document, known as the title or deed, which confirms ownership, location, and rights associated with the property. To understand more about the property title read our extensive guide here
Development Company Registration
Verify that the development company has registered with the relevant ministries and obtained the necessary approvals before commencing construction. Request to see their company registration documents as proof of their legality.
Master Plan
A well-thought-out master plan is crucial for any new development project. Developers should present a detailed plan to the ministry, demonstrating the project's potential for success in the future.
Construction License
Check if the company responsible for construction has undergone a thorough background check by the Ministry of Land Management. Only registered construction companies are permitted to build units and infrastructure, and they should possess a valid construction license.
Sales License
Apart from the construction license, a sales license is equally crucial for property purchases. This license grants developers the legal authority to sell properties to prospective buyers. Ensure that the developers have obtained the necessary approvals to market and sell the property.
Review Agreements
Thoroughly review all contracts and agreements related to the property transaction, including the sales and purchase agreement (SPA), lease agreement, and any other legal documents. Understand all terms and conditions, payment schedules, transfer of ownership details, and any relevant clauses.
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