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The law of Mortgage in Cambodia is governed under the Land Law of 2001. Under this law, a mortgage is defined as a contract by which a debtor guarantees the repayment of a debt by the provision of an immovable property as security. In Cambodia, only legal entities possessing full rights to a property can proceed with a mortgage. The process is highly regulated, and the mortgage contracts are to be recorded and registered in the Land Registry. The mortgage laws in Cambodia also stipulate that any mortgage can only be canceled in writing, and the cancellation is valid only when it is inscribed in the Land Register.
Understanding and navigating the legal terrain of Mortgage law in Cambodia can be challenging due to its complexities. You may need a lawyer to assist in drafting the mortgage contract, the interpretation of certain legal provisions, ensuring accurate execution of legal formalities, and safeguarding your rights. In case of mortgage disputes or foreclosure process, having a legal expert by your side can be significantly beneficial. Avoiding legal assistance may lead to unnecessary legal complications and potential financial losses.
The key aspects of local laws related to mortgage in Cambodia include the mandatory requirement of registering the mortgage with the Land Registry. The law gives the creditors the right to sell the property in order to recover the debt in the event of default by the debtor. However, it is important to note that only the courts have the authority to order a foreclosure. Besides these, the laws also guarantee the mortgagor the right to redeem their property within a stipulated time frame before the foreclosure sale.
According to Cambodia's Land Law, foreigners are not allowed to own land or properties. However, long-term leases and co-ownerships with a Cambodian national are encouraged. Therefore, foreigners can technically participate in the mortgage of leaseholds and co-owned properties.
If a debtor fails to repay the mortgage loan, the creditor has the legal right to initiate the foreclosure process, which can result in the sale of the property to recover the debt. However, the law mandates that a court order should be obtained for foreclosure.
Yes, but only in writing, and the cancellation is valid only when it is inscribed in the Land Register. Prior consent from the mortgagee (lender) is crucial in this process.
Mortgage disputes are typically resolved in the courts. Legal representation is crucial in navigating through the complex litigation process.
Yes, but the consent of the creditor is required. The unresolved mortgage debt will typically transfer over to the new owner.
Some of the institutions that can provide additional information and assistance include the Ministry of Land Management, Urban Planning and Construction (MLMUPC), the Cadastral Commission, and various legal aid organizations.
If you need legal assistance in mortgage, the first step is to consult with a lawyer specialising in Cambodian property law. Ensure you equip yourself with all necessary documents including ID, proof of property ownership amongst others. Real estate or legal firms can provide you legal advice and help you understand your rights, obligations and the specific procedures involved in the mortgage process.
