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Angkor TimesExperienced
Asked: January 31, 20222022-01-31T09:41:40+07:00 2022-01-31T09:41:40+07:00In: Make Money

What are the Common Real Estate Scams in Cambodia?

Cambodia is experiencing strong real estate growth, which is attracting foreign investors and pushing more local people to invest in both the real estate and housing sectors. That is, this growth has spread everywhere in major cities, emerging cities, industrial areas and some major national roads.

Indeed, this new trend is very lucrative for developers and the latest investors. At the same time, some developers and crooks have been embezzling real estate by providing inaccurate information for short-term profits.

What are the Common Real Estate Scams in Cambodia?
Image credit: Samdech Hun Sen, Cambodian Prime Minister

This may be due to legal laxity, business standards in the sector also do not seem clear, which makes buyers unaware that they are being scammed, or in some cases it seems too late. Know that you have been deceived. Of course, if you are not very careful, you will be wasting your time and money.

To avoid these risks, it may be necessary for the buyer to be extra careful. At the same time, buyers can find out some of the scams of the crooks. Here are some scams that have happened in real estate transactions in Cambodia.

Two titles deed

Hard title and soft title are real estate titles used in Cambodia. Normally a property can have one title deed, but some properties can have both hard title and soft title deed.

The scam involves the owner selling the property to two different buyers, with one buyer getting the hard title and the other getting the soft title. In this case, the buyer with the soft title will not have legal rights. No, because the soft plan is recognized only by the local authority, while the hard plan is nationally recognized.

There have been cases of multiple plots being issued on the same property, and the seller has sold the same property to multiple buyers.

Solution: You can directly investigate with the Ministry of Land Management, Urban Planning and Construction and the local cadastral office by copying the title deed from the seller for inspection with official records.

Another precaution is to check whether the neighbor has a hard or soft layout. If the people in the area hold the title deed, it means that the government has already issued the title deed to the area. We do not recommend buying a property with a soft title in an area where the neighbor has a hard title.

Fake hard layout

At the beginning of 2018, there was a case of land fraud using a fake title deed in Phnom Penh.

In the above case, the buyer checked the title deed and verified the identity of the owner, the identity card and the family book were all correct. But a few months later, after submitting the land transfer document, the district land was found to be a fake land title.

As a solution: Buyers of real estate should verify the plan with the cadastral office or district / Khan land before deciding to make a deposit.

Disputed land

You can become a victim unknowingly if the land buyer is in dispute or has a court ban. It may not be easy for you to know if there is a land dispute if you do not live in the area.

Solution: Talking to your neighbors can usually help you to gather all the necessary information. You should also seek assistance or ownership through the commune / sangkat council or land ministry officials to find out if the land is really safe.

A professional real estate agent or experienced lawyer can do this for you if you need to.

Fake land owner

You may have seen large vacant plots of land for sale. This scam involves someone who claims to own a piece of land.

Solution: You need to ask the neighbors and the village chief about the property and the history of the landowner. Then find out what the difference is between the information you get from the village chief and the information the seller claims. Checking the title deed is important, and if the landowner does not have the title deed, there is definitely something wrong. In general, assistance from the relevant authorities will be able to confirm who the real owner is.

Beware of deposits

Real estate sellers, fake owners or fake sellers always want the deposit first. Buyers are asked to make a deposit to get the property first. After receiving the deposit, the fake seller escaped.

Solution: You can choose the option of sending a deposit through a trusted third party or depositing in an intermediary bank account, waiting until everything is settled. Doing so can protect yourself from being scammed.

Land Lot Seller (selling land but no land to sell)

They use other people’s projects to market, claiming to be the land of the company or their project. They do not have a clear company but have a large team and a temporary office. The losers of wind lot sellers may come from not doing in-depth research on special projects, overseas workers.

Solution: Buyers should not believe just by seeing through Facebook ads. You need to know the history of the company and the legality of the company and the legal ownership of the property.

If you do not understand the market, you need to consult with a real estate agent or expert before deciding to buy.

Hidden damage

One of the reasons home sales are so much lower than the market is probably because of the damage that you will not be able to see. The seller will provide you genuine articles as he does not want to tarnish his own image.

Solution: As a guide, you should bring an expert to help check the plumbing and the strength of the building before you buy a home.

Flooded areas

“No flood” is a special feature of real estate for sale. Vendors will advertise that the area is free of flooding, even if the area is flooded. Buyers are likely to call everyone who looks appropriate, if there are only a few.

Solution: You can check if the area is flooded by asking local people or neighbors if the area is really flooded.

Prepaid

Fake developers advertise that they have a new project and start selling it before the project. They open the purchase and pay or deposit before the project and after collecting enough money, they suddenly escape.

Solution: To avoid all of these issues, you can do a thorough review of the developer’s previous project history.

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