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Real Estate Investment

LOCAL LEGAL LAWS

The Cambodian law on real estate stipulates that the purchase of real estate (lot and building) must remain and owned in majority by a Cambodian. So as to guarantee the ownership of your investment, the many foreign investors currently follow these next 3 steps in order to circumvent this law.

1. Constitution of a limited partnership (Ltd) with emission of bearer shareholder. In order to comply with Cambodian law, this Ltd must be established and recorded by a Cambodian person holding 51% of the shares and the foreign investor holding not more than 49%.of the shares. This legal procedure takes 3 weeks.

2. Physical suspension of the bearer shares held by the Cambodian shareholder to the profit of the foreign investor. This legal agreement must be signed by both parties.

3. Once the total amount of the bearer shares are transferred to the foreign investor, this one can access the funds necessary to close on the real estate purchase.

CLOSING COSTS

As of August 2007, the expenses are established as follows.

The costs to establish and record a limited company (Limited Company) are 1.500 USD. A capital of 1.000 USD must be deposited in a local (Cambodian) Bank under the foreign investor’s name. The acquisition of real estate taking place after the formation of the company, it is also necessary to create a short-term lease agreement for fictitious address for the company. Once the lot is bought, a 4% State Tax will be charged to the buyer as closing costs. Finally, a flat fee amount of ??? USD is necessary to cover for the building permit.

Be&Be Invest Co, Ltd, our real estate investment department offers to act as your title agent for all the necessary steps:

Open an account with a local Bank ;

1,000 USD deposit into that account (which can be applied towards the purchase) ;

Partnership with a Cambodian working for Be&Be Invest ;

Administrative steps to register your company ;

The transfer of shares document ;

The creation of a short term lease agreement for fictitious address with Be&Be Invest ;

Restitution of 100 % of the bearer shares of your company ;

the state taxes, record of deed and building permit.

This legal plan allows also multiple ownership or Co-op.
The foreign investor, is eligible to be represented by a holding or company from his own nationality of origin.
When resale, the laws are identical but all the closing costs are due by the new buyer.