Foreigners can only own properties on the first floor or higher (not the ground floor), up to 70% of any one 
building, however this only applies to buildings with a strata title. A strata title is a type of hard title that allows an owner to divide a building into multiple individually saleable properties, this is also known as the “condominium law”, it is generally only granted to new condo buildings that are being built for this specific purpose.
HARD TITLES
Hard titles are ownership certificates provided by the Land Department of the Ministry of Land Management, Urban Planning and Construction, and are the official recognition of property ownership in Cambodia.
These titles contain comprehensive information regarding ownership and are passed by the Ministry of Land Management. It is illegal for foreign nationals to own property under a hard title. Hard titles are only available to Cambodian nationals.
It takes approximately four to six weeks to process a hard title transfer. Transfers are additionally subject to a 4% transfer tax based on criteria by the concerned land/cadastral office.
SOFT TITLES
A soft title is a form of customary ownership in Cambodia and it is the most prolific form of property title amongst Cambodians. Most soft titles are gradually being converted into hard titles, a process which has been ongoing for a number of years.
Soft titles are issued at the district and commune levels only, not the national level. Local authorities can often issue soft titles within 5 to 10 working days.
Although soft titles are not registered at the national level, they are still considered a possessory right to land. Soft title transfers are similarly subject to the 4% transfer tax.
Sharon Liew, CEO of Huttons CPL, notes that Guaranteed Rental Returns is a reassurance scheme for new investors looking to try out a new, somewhat unchartered international market. Standard net returns being advertised in the condos and new developments market range from 4 percent to 9 percent, normally for a two to five year period, although
claims of 20 percent or more for short-term periods are also being touted by some operators.
What’s the history of land titling in Cambodia?
“During the Democratic Kampuchea regime (1975-79), the Khmer Rouge abolished ownership of property and destroyed all existing official property records in Cambodia. At that time, all property belonged to the state and there were no private owners. After the Khmer Rouge fell, and for the next ten years, the right to own property was still not recognized and all property was owned by the government. In 1989 a land law was issued which established a framework for the recognition of property and property rights throughout Cambodia. In 2001 the Land Law was updated in an attempt to further clarify property ownership.”
How are land titles registered?
“Under the Land Law, property can be registered in two ways, systematic registration and sporadic registration. In the systematic system, the government targets plots of land to measure, register and title, this will continue until the whole country is complete. In the sporadic system, the owner initiates the title registration through the central cadastral office. There are currently two types of titles legally recognized in Cambodia, soft titles and hard titles.”
What is a soft title?
“The majority of property in Cambodia is legally held under a soft title, 70% of properties in urban areas and 82% in rural areas. Property held under a soft title is registered at the local sangkat or district level, but not at the national level. Soft title documentation can take a variety of forms, such as a letter of transfer from the previous possessor stamped by the sangkat or district office, a possession status certificate from the local sangkat or district office, or a building application.
Buyers wanting to purchase a soft title property should conduct their own due diligence, at the sangkat or district office to confirm whom holds the soft title.