Transferring ownership is the basic yet necessary procedure after purchasing or selling any real estate. To avoid dispute, both the seller and the buyer are required to know the procedure.
Title conveyance is made with legal documents referring to the contract or other legal documents confirming the transfer of title from the original landowner to the one.
Here’s the difference between the legal process, hard title and soft title procedures.
This transfer takes place in the form of:
– Land sale-purchase transaction contract
– Donation or gift (a contract in which one party provides property free of charge to the other party)
– Succession (transfer of rights or duties from one person or more by law)
– Inheritance by agreement.
The conveyance procedures are:
1. Land Office Approval
Both parties must come to the Office of Land Management, Urban Planning, Construction, and Land of the municipality, District, or Khan (AKA Land Office) where the property is located. Both party have to fill the documents in front of the authorities and witnesses. Both parties must attach necessary documents such as:
– Sale and Purchase Contract
– Letter of gift/donation (when land is donated to someone)
– Identity card (certified copy approved by Municipality/District/Khan)
- Certified copy of marriage certificate (when transferring between the couple)
– Letter of Marital status (single, married, or divorced)
– Other necessary documents (if necessary)
2. Commune/Sangkat Approval
After completing the documents at the office, the property owner must take the documents to the Commune/Sangkat authorities, where the property is located to check the legality and seal on all the documents.
3) Land Measurement Stage
The property owner then must take the document back to the land office. The officer will inspect the site, open the measurement case, and prepare other related documents.
4) Cadastral Authority check and tax payment
After completing procedure No 3, the owner with the hard title (registered land) has to take all documents to the Municipal Department of Land Management, Urban Planning, Construction, and Cadastre (AKA the Cadastral Authority) where the property is located.
The cadastral officers will document. If the document is complete, the officer asks the owner to pay the cadastral service fee and pay property tax at any department of taxation branch where the property is located. (Read more)
However, for the owner with soft tile (unregistered land), after completion No 3, the land office will prepare the documents for the owner to pay 4% of the registration tax.
4% tax is levied on the transfer of rights of property both soft and hard title. However, according to Decision No.04 SSR, the tax is waived in some form of transfer including:
-Between the biological parents and the children
-Between the husband and wife
-Between the biological grandparents and the grandchildren
5) Name on the title
After paying the tax, for a hard titleholder (registered land), the owner must bring all the documents to the Cadastral Department again so that the officer can update the owner’s name in the computer system and write on the title. The new owner will receive the title once all the procedures are completed.
For soft titleholder (unregistered land), the owner must return the tax payment receipt to the land office for the officer to review and decide to complete the transfer of ownership of the property to the new owner only at the Khan/District administration. At that time, the new owner will receive a file of title conveyance that has been properly transferred to the new owner.
reference source : Construction Property