A hypothec is a registered security right over immovable property, and its legal effect depends on registration with the relevant land authority. Cancellation means the authority updates the title record to show that the security no longer exists, so the property is no longer encumbered by that hypothec.

In practical terms, cancellation clears the title. That matters because a hypothec recorded on the title can block or complicate a later sale, transfer, refinancing, or new security registration.

Cancellation is needed when the underlying obligation has been completed, such as when the loan is fully repaid or the secured debt has been discharged by agreement. It may also be needed if the security is terminated for another legal reason recognized under the Civil Code framework.
If the hypothec is not removed after repayment, the title may continue to show an active encumbrance. That can cause delays in later transactions because buyers, banks, and due diligence teams usually expect the title to be free of old security interests. 

Before cancellation is processed, the borrower usually needs proof that the secured obligation has been satisfied. In practice, this is often a bank or lender release letter, a payoff confirmation, a discharge certificate, or another written statement confirming that the debt has been fully paid.
The exact form of proof can vary depending on the lender and the transaction. What matters is that the lender clearly confirms it no longer claims rights under the hypothec. 

The borrower will usually need to provide the original title or title details, identification documents, and the lender’s discharge or release document. If the borrower is a company, company registration documents and authority papers for the signatory may also be required.
The lender commonly provides a signed cancellation letter, release deed, or other document authorizing removal of the hypothec. Where the lender is a financial institution, its internal authorization process may require official signatures, seals, or additional corporate papers before the release is issued.

If a representative files the request, a power of attorney may be needed. Because the cancellation affects the public title record, all names and property references should match the original hypothec registration as closely as possible. 

The first step is usually to obtain written confirmation from the lender that the obligation has been fully settled. After that, the parties prepare the cancellation documents and submit them to the competent land office where the hypothec was originally registered.
The land office reviews the documents, checks the title record, and confirms that the hypothec can be removed. If the file is complete and acceptable, the authority updates the registration record so the encumbrance is cancelled from the title.
After registration, the owner should verify that the title no longer shows the hypothec. It is also wise to keep the lender’s release letter and the cancellation receipt in the property file, because these documents may be needed later if there is a question about the old security record. 

Formal cancellation is important because a loan being paid off does not always mean the public title record updates automatically. In Cambodia, registration is central to the legal effect of immovable property rights, so the title record must be formally corrected to reflect the end of the hypothec.
Without cancellation, a buyer or new lender may still see the property as encumbered. That can reduce transaction value, slow down closing, and create avoidable legal questions. For this reason, clearing the title is just as important as creating the hypothec in the first place.

Hypothec cancellation in Cambodia is the final step that confirms a security interest has ended and the title is free of that encumbrance. It usually requires proof from the lender, supporting borrower documents, and a filing with the relevant land authority.