Cambodia Investment Review
During the recent American Chamber of Commerce (AmCham) Real Estate and Construction Mid-Year Legal Update Event, Davy Kong, the Co-Head of Real Estate and Construction Practice at DFDL, illuminated the recent reforms and legal developments in Cambodia’s real estate and construction sector.
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Davy provided an incisive analysis of Sub-Decree No. 50, which took effect on March 2, 2023. This legislative update redefines the licensing regulations for businesses involved in real estate and co-owned building development. Speaking on these developments, Davy stated, “The new sub-decree signals a transformative phase for real estate regulation in Cambodia, promoting enhanced transparency and industry stability.”
The introduction of a one-year renewable licensing structure
In addition to Sub-Decree No. 50, Davy highlighted the implications of Prakas No. 064, dated December 27, 2022, which regulates the licensing of real estate business services. “The introduction of a one-year renewable licensing structure in Prakas No. 064 paves the way for higher standards and continuous professional services in the real estate sector,” she explained.
Davy also emphasized the recent shifts in Cambodia’s construction law, including the issuance of necessary permits and stringent licensing regulations for construction projects. “We are witnessing a new era of construction in Cambodia, characterized by safety and technical precision,” Davy noted.
The DFDL’s Co-Head also walked the attendees through the updated regulations concerning real estate and construction contracts. She discussed various contract types and their requisite elements, reinforcing the importance of contractual legality. “The reform signifies an essential step towards clear and binding contracts that underline the responsibilities of all parties involved,” Davy added.
Tips for stakeholders in the real estate and construction sectors
Davy concluded her presentation by offering a set of practical tips for stakeholders in the real estate and construction sectors. She covered effective strategies for company searches, license searches, title searches, and construction permit searches.
In her concluding remarks, Davy urged all sector stakeholders to keep abreast with these critical legal updates. “In our rapidly evolving industry, understanding and adhering to the latest real estate and construction law updates is not just advisable, but imperative for business success,” she emphasized.
Davy’s presentation at the AmCham Mid-Year Legal Update Event provided attendees with key insights into Cambodia’s evolving legal landscape. With these clarifications, DFDL continues to guide stakeholders through the complexities of real estate and construction law, making sense of the legal changes to help businesses thrive.
