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Buying a Home "As-Is" in Cambodia: What Sellers and Buyers Need to Understand
Introduction
Yet many buyers and sellers still misunderstand what "as-is" actually means under Cambodian law. It is not a magic phrase that erases every legal obligation a seller owes to a buyer, nor is it a guarantee that a buyer has no recourse once the deed is signed. Understanding how the Civil Code of Cambodia, the Land Law, and related regulations treat as-is property sales is essential for anyone buying or selling residential real estate in the Kingdom, whether the property is a borey house in Kandal, a condominium in BKK1, or a family home passed down through a soft-titled plot in the provinces.
This article explains the legal framework governing as-is home sales in Cambodia, the protections that remain in place for buyers despite an as-is clause, and the practical steps both parties should take before signing a sale and purchase agreement.
What "As-Is" Actually Means in a Cambodian Transaction?
In Cambodia, such clauses are typically inserted into private sale and purchase agreements for both landed property and condominium units, particularly in resale transactions involving older housing stock, borey developments nearing the end of their initial warranty period, or land parcels sold without formal inspection. Sellers favor these clauses because they reduce the risk of post-sale disputes over cosmetic damage, aging plumbing, or structural wear.
Buyers, in turn, are often offered a lower price in exchange for accepting this risk. However, an as-is clause operates within the framework of Cambodian contract law, and it does not automatically override obligations that the law treats as fundamental to a fair transaction, particularly the seller's duty of good faith and the buyer's underlying right to verify legal title.
The Legal Framework: The Civil Code of Cambodia
First, Article 5 of the Civil Code establishes the principle of good faith as a general rule underlying all civil relations in Cambodia, meaning that rights must be exercised and duties performed honestly and fairly. This principle limits how far a seller can rely on an as-is clause if the seller actively concealed a defect or misrepresented the condition of the property rather than simply remaining silent about wear that a reasonable inspection would reveal.
Second, Article 135 of the Civil Code provides that the transfer of title to an immovable by agreement only takes legal effect once the transfer is registered in accordance with the laws and regulations on land registration. This means that regardless of what an as-is clause says about the physical condition of a house, ownership itself does not pass to the buyer until the transaction is properly recorded with the competent land authority, a step that is frequently overlooked in informal or rushed sales.
Good Faith, Concealment, and the Limits of an As-Is Clause
Cambodian contract law addresses defective declarations of intention, including fraud and material mistake, in a separate section of the Civil Code's chapter on contract formation, which allows a party to seek rescission of a contract induced by fraudulent concealment or a material misrepresentation. In practice, this means that a buyer who later discovers that a seller deliberately hid a serious defect, or misrepresented the legal status of the land, may still have a claim despite the presence of an as-is clause, because the clause cannot be stretched to cover bad-faith conduct at the time of contracting.
For sellers, the safer and more defensible approach is full written disclosure of known issues at the time of sale, since a documented disclosure combined with a clear as-is clause offers far stronger protection than silence.
Title Verification: Hard Titles, Soft Titles, and the Land Law of 2001
The Land Law of Cambodia, promulgated by Royal Kram No. NS/RKM/0801/14 on 30 August 2001, introduced the modern system of registered "hard titles," recorded centrally with the Ministry of Land Management, Urban Planning and Construction, alongside the older "soft titles" recognized only at the commune or district level and carrying comparatively weaker legal protection. Article 44 of the Constitution of the Kingdom of Cambodia further restricts direct land ownership to Cambodian nationals, a rule that has significant implications for foreign buyers considering landed property, as discussed below.
Because an as-is clause addresses the physical and sometimes legal condition of the property being sold, buyers should never assume that "as-is" extends to accepting an unverified or defective title. Before signing any sale and purchase agreement, a buyer should independently confirm the seller's registered ownership, check for existing mortgages, liens, or boundary disputes, and, where the property carries only a soft title, weigh the additional risk that this entails.
Special Considerations for Foreign Buyers and Condominiums
This ownership structure is implemented through a strata title issued under the co-ownership framework established by Sub-Decree No. 126 on the Management of Co-owned Buildings. As-is sales of condominium units are common in Cambodia's resale market, and foreign buyers relying on this pathway should confirm both that the building's foreign-ownership quota has not been exceeded and that the unit's strata title has been properly and separately registered, since these are legal conditions of ownership entirely distinct from the physical condition covered by an as-is clause.
Market Context: Why As-Is Sales Are Growing in Cambodia
Separately, industry data cited by Knight Frank Cambodia and Global Property Guide place average high-end condominium prices in Phnom Penh at over 2,800 US dollars per square meter as of the fourth quarter of 2025, alongside continued growth in the city's total condominium supply, which analysts estimate has surpassed 64,000 completed units.
A softer, more price-sensitive market of this kind tends to produce more resale and as-is transactions, since sellers face pressure to move existing inventory quickly and buyers are drawn toward lower entry prices on older or unrenovated stock, making a clear understanding of as-is legal obligations more important than ever for both sides of the transaction.
Practical Due Diligence for Buyers and Sellers
Sellers, for their part, should ensure that the as-is clause is drafted clearly, that any defects they are aware of are disclosed in the contract itself, and that the transfer of title is properly registered in accordance with the Civil Code once the sale is finalized, since an unregistered transfer leaves both parties exposed to future disputes regardless of how the physical condition of the property was handled.
Conclusion
Title verification under the Land Law of 2001, and, for foreign buyers, compliance with the 2010 Law on Foreign Ownership of Co-owned Buildings, remain entirely separate questions from the state of a property's roof or plumbing. Buyers and sellers who take the time to document disclosures, verify title, and confirm registration are far better positioned to enjoy the benefits of a flexible as-is sale without inheriting its risks. Given the legal and financial stakes involved, parties to any as-is property transaction in Cambodia are strongly encouraged to seek qualified legal counsel before signing a sale and purchase agreement.