Cambodia Client Alert – 26 July 2013 – Prakas No. 30

Dear Valued Clients,

In our continuing effort to keep you apprised of legal and regulatory developments that may impact your business, we are pleased to send you this Client Alert.

The Ministry of Land Management, Urban Planning and Construction and the Ministry of Justice have introduced a new Prakas, the ‘Inter-Ministerial Prakas concerning Real Rights Registration Procedure Pertaining to the Civil Code’ (“Prakas No. 30”) dated 29 January 2013 which shall be entirely implemented on 29 July 2013.

The goal of the Prakas No. 30 is to ensure the validity and enforceability of real rights registration and to regulate the procedure for filing applications and for registering real rights in accordance with the Civil Code.The Prakas No. 30 applies to the following registrations:

• Transfer, change, correction and extinguishment of ownership;
• Creation, transfer, change, correction and extinguishment of perpetual leases, usufruct, statutory lien, pledge and hypothec; and
• Creation, change, correction and extinguishment of usufruct and easement.

In addition to changes in procedures, the Prakas is expected to have an important impact on financial transactions since the Prakas implements procedures for the registration of multiple securities with different priority for specific secured amounts.

We trust that this Client Alert is helpful for you. If you have any questions or required further clarification on how this may impact your business, please do not hesitate to contact us.

Kind Regards,

Guillaume Massin
Managing Director,
Head of the Real Estate Practice Group
guillaume.massin@dfdl.com