KHIEU Mealy sharing her insights on “Legal Aspects of Real Estate Investment and Dispute Resolution under Commercial Arbitration Mechanisms”
Mrs. KHIEU Mealy, Senior Partner and Arbitrator at SOK SIPHANA & ASSOCIATES, was honored to be one of the guest expert panelist invited to the “Legal Aspects of Real Estate Investment and Dispute Resolution under Commercial Arbitration Mechanisms” conference.
The “Legal Aspects of Real Estate Investment and Dispute Resolution under Commercial Arbitration Mechanisms” forum was held on 22nd December at the Royal University of Phnom Penh with the objective of discussing Cambodia’s relevant laws governing real estate and alternative land use dispute resolution. This event also brought together other prominent speakers such as Sotheara Ieng – President of the Cambodia-Japan Association for Business and Investment.
On this occasion, Mealy acknowledged with the other experts that knowing legalities of real estate investment and understanding the legal aspects of investing in real estate is vital for every prospective property buyer to ensure that the investment is both profitable and safe.
She notably shared:
“Only natural persons or legal entities of the Khmer nationality have the right to own land. Thus, persons of foreign nationalities, even natural persons and legal entities, don’t own land.”
“A Cambodian subsidiary company formed as a joint venture between Cambodian and foreign investors can own land. By establishing a joint venture, foreign investors can invest in the land legally. But they must clearly define the purpose of investment and the responsibilities of investors, to avoid future disagreements. Also, a joint venture company can receive additional resources,” she added.
“Unclear business goals, imbalances of skill level or resources, and divergent management methods of investors could increase risks for a joint venture company,” KHIEU Mealy said.
“When investing in real estate by setting up a Cambodian company that can own land, the key point to consider is to choose the best potential partner by examining all the details including their background and resources,” she advised.
Significant economic growth in Cambodia in the previous years had led to the rise of foreign direct investment (FDI) particularly in the real estate industry. Being aware of the legal ramifications of real estate investment in order to make lucrative and secure investments, including development plans and government policies is critical.
The panel also highlighted while discussing a joint venture the importance of consulting your partners, seeking the advice of experts, including legal and financial professionals, and clearly defining the obligations of each party, intellectual property clauses, and dispute resolution methods.