Leasing Law in Cambodia

DFDL will be happy to discuss your needs with you and tailor a service to them. We have extensive experience in advising clients on all aspects of the leasing business in Cambodia and throughout the region, including licensing/permitting matters, drafting finance leases and advising on compliance, tax and insurance issues related to leasing. b- The lessor purchases the movable property for rental from the tenant in accordance with the leasing contract. Subletting is prohibited unless expressly authorized by the contract. The scope of this law extends exclusively to the financial leasing of movable property in the Kingdom of Cambodia. During and after the term of the finance lease, the landlord remains the owner of the movable property, even though ownership has been transferred to the tenant or other parties. – Leasing contract: Refers to the agreement under which the owner buys a movable property chosen by the tenant from the supplier and rents it to the tenant and allows the tenant to pay within a certain period. A termination of the contract by a party is not easy if the lease does not contain a termination clause. Therefore, the contract must contain a termination clause and appropriate notice is mentioned for the termination of the contract. The landlord may terminate the contract before it expires if: (iv) classifications for loans and the provision of capital are established; – The tenant has a guarantor/sponsor who becomes insolvent and the tenant is unable to find such a replacement within 30 days of the landlord`s written request; The lease can be verbal if it is short-term (say less than a year).

A written contract is essential if the lease lasts more than a year. The landlord must ensure that the movable property can be used by the tenant without intervention for the duration of the finance lease, as long as the tenant fulfills the tenant`s obligations under the contract. There are no legal restrictions on deposits or rental deposits. Rental bonds are normal, most often from three months to six months` rent, depending on the rental period: short or long term. Deposits are rare. The National Bank of Cambodia acts as the regional authority for the management of leasing contracts, and the National Bank of Cambodia becomes:. The Legislative Decree of 1988 defines the validity and nature of frequently used contracts and regulates contract law in all transactions since the 1993 election. To encourage open and spam-free conversations, the Global Real Estate Guide moderates the prices of all items. You can expect your comment to be published within 24 hours. Speaking of negotiations, in Cambodia, both parties are free to negotiate the rental period, duration, extension, other legal rights and obligations, rent increase, etc. Cambodia`s lease law does not regulate the increase in rent when the contract is extended.

According to Cambodian rental law, the landlord can inform the tenant if he wishes to increase the rent within a reasonable time (as specified in the contract). If the negotiation of the contract extension fails, the contract may be terminated. . – cease activities in order to determine the scope of activities; Speaking of deposits, there is no legal restriction on this. Depending on the rental period, the deposit can be from two months to six months` rent. PREAH KARONA PREAH BAT SAMDECH PREAH BOROMNEATH NORODOM SIHAMONI SAMAN PHAUM CHEAT SASSNA REAKHATAK KHATEIYA KHEMRA ROTH REAS PUTITRA THOR REAM MOHA KHA SAT KHEMREACHNEA SAMO HO PHEAS CAMPUCHEA EK REACH ROTH BORONAK SANTIE SEREI VIBOLA KHEMRA SREY PHI REAS PHEAS CHAO KRONG KAMPUCHEA THIBAKDEY. Entering into a finance lease may result in lower transaction costs than a traditional bank loan. A traditional bank loan often involves a comprehensive review of the borrower`s assets, liabilities, income, and other due diligence. Since ownership of the proceeds remains in the hands of the lessor, this process may be faster in the case of a finance lease. In order for the Cadstral office to register a lease and issue a certificate of the long-term lease, the lease must be certified by the local Sangkat (local authority) in accordance with current practice – lease certification requires both parties to sign the lease in the physical presence of Sangkat officials. – withdraw the operating authorisation and cease its activities without delay. Clauses terminating the contract before the expiry date may be included in the contract.

In the absence of such a clause, the relevant party is entitled to remedies and damages in accordance with the rental agreement and/or the court decision. – Having understood Royal Stuff No 2/rs/94 of 20 July 1994 in order to explain the law on the preparation and execution of the Ministry. The financial agreement must be signed in writing by the owner and the tenant and must establish a notice period and conditions for all parties involved in relation to the rented movable property. The finance lease does not need to be notarized unless required by law. A lease can be long-term or short-term. After the expiry of the contract, it may be extended by mutual agreement between the two parties. If, after the expiry of the contract, negotiations between the parties fail, the contract will expire. So these are the rules for renting a property in Cambodia.

Whether you are a resident of Cambodia or a foreigner, these are the rules you should follow before renting the property. If you are looking for a condominium, commercial space or apartment for rent in Cambodia, we can help. This law takes precedence over any other law or ordinance that does not comply with that law. (vi) regularly verify and review the documents within a required period of time at the place of the entity participating in the finance lease; and if you want to stay in Cambodia for more than a few months, you need to rent a place. This is becoming more and more important for foreigners. .