Real Estate Development License (Prakas 089 On Management of Real Estate Development)
- License refers to legal document issued by the Ministry in order to give a real estate developer permission to conduct a business of housing development and/or co-owned building and/or land parcel development.
- The business of housing development or co-owned building over 30 flats or 30 villas or30 units, or land lot development over 1 hectare must hold a license issued by the Ministry in advance.
- There are 3 types of licenses:
- Housing development license
- Co-owned building development license
- Land lot development license
- There are 2 types of housing development license:
- Type 1: shall be granted to any developer who only make a sale after the completion of the construction project.
- Type 2: shall be granted to any developer who simultaneously undertakes a construction project and make sales.
- Fee for licenses:
- Flat house: 100,000 Riels/house
- Villa: 100,000 Riels/house for twin type, 200,000 Riels/house for single type.
- Co-owned building: 100,000 Riels/unit for unit with 1 or 2 bedrooms, 200,000 Riels/unit for unit with more than 3 bedrooms
- Land lot: 1000 Riels/sq.m
- One license is for only one project.
- In case the development project split into phases, the license will be granted by phases of that development project.
- Housing development type 2 needs to deposit 2% of total construction cost.
- It is possible to withdraw all money deposited only when the construction project finish at least 70% or fully finished.
- In case project is in phases or have another new project the deposit can be transferred to another phase/project after the previous phase/project has finished more than 50%. The new deposit amount will be changed depend on the actual size of phase/project.
- Before make sales, the model house must be finished and all materials/decorations inside must be identified if it is provided to buyer.
[Prakas 089 On Management of Real Estate Development]
