23 March 2021

On 30 December 2020, the Ministry of Land Management, Urban Planning and Construction (“MLMUPC”) issued the Sub-Decree No. 226 on Conditions and Procedures for the Issuance, Suspension and Revocation of the Occupancy Certificate (the “Sub-Decree No. 226”). This Sub-Decree further addresses the issue of the Occupancy Certificate required under the Law on Construction dated 2 November 2019 (the “Construction Law”), and  determines the conditions and procedures for the issuance, suspension and revocation of the Occupancy Certificate. According to Sub-Decree No. 226, the Occupancy Certificate is the permit which the construction owner needs to obtain from the MLMUPC upon completion of construction prior to being able to lease or do business on the constructed structure.

Since the passage of this Sub Decree an Occupancy Certificate, or temporary Occupancy Certificate, will now need to be obtained upon the completion of the construction and prior to any use of a construction (as the case may be). However, constructions that are not subject to a construction permit will be exempted from the requirement to obtain the Occupancy Certificate. In the event that the Occupancy Certificate is suspended or revoked by the competent authority, the construction owner will be prohibited to use or conduct any business on the completed construction.

On a related note, prior to the issuance of the Sub-Decree No. 226, the MLMUPC also enacted Prakas No. 177 on the “Formalities and Procedures for the Issuance of the Occupancy Certificate for the Constructed Building Built before the Enforcement of the Construction Law” dated 6 December 2019 (the “Prakas No. 177”). Prakas No. 177 prescribes the rules governing the Occupancy Certificate for constructions built before the Construction Law and which are done without a construction permit, done not in compliance with the construction permit, or completed with neither compliance certificate nor site closing permit).

Not obtaining the appropriate Occupancy Certificate may result in monetary penalties.

In this respect, we invite you to consult with our professional team on any questions or assistance you may need regarding the Occupancy Certificate: Matthew Rendall, Lim Veasna, Neou Sonika, Tor Revit at SokSiphana&associates (a member of ZICO law).

This alert is for general information only and is not a substitute for legal advice.