The Certificate of Occupancy (Feb 2022)

1. INTRODUCTION

On November 02, 2019, the Law on Construction was promulgated in response to the rapid growth of the real estate sector in Cambodia. The law aims to establish principles and technical building regulations, rules and procedures for the management of the construction sector in the Kingdom of Cambodia. Whilst the law provides a detailed overview, sub-regulations will be released at a later date to clarify the further implementation of certain provisions of the law, and to provide guidance for concerned parties.

With the increasing rate of building construction in Cambodia, the government has been working hard to implement control over the construction sector, especially relating to building compliance. To fully comply with construction laws and regulations, each construction owner is required to obey three procedures: the ‘Prior to Construction’ procedure, the ‘During Construction’ procedure and the ‘Completion of Construction’ procedure.

The Ministry of Land, Management, Urban Planning and Construction (“MLMUPC”) and other relevant institutions have found numerous examples of non-compliance of the building regulations, with many built in a non-standard way which presents a high risk to both construction users and to the public. To avoid further risk, on December 30, 2020 the Royal Government of Cambodia issued Sub-Decree No. 226 on the conditions and procedure for granting, suspending and revoking a Certificate of Occupancy, to control non-compliance constructions, and to maintain standards of security, safety and aesthetics for sustainable living. Once the construction of the building has been completed, each construction owner shall apply for a Certificate of Occupancy (previously known as a “closing permit”).

2. CERTIFICATE OF OCCUPANCY

All construction types which require a construction permit, shall apply for a Certificate of Occupancy, as enforced in the Law on Construction. Furthermore, any construction built before the enforcement of the Law on Construction and constructions built before December 20, 1997, are also required to obtain Certificates of Occupancy, but it applies only to the constructions classified as follows:

• Those built without a construction permit
• Those built in breach of the conditions stated in the construction permit
• Those built with a construction permit, but there is no certificate of compliance or closing permit.

The Certificate of Occupancy is a certificate issued by the competent authority to construction owners to stay, rent or undertake other legitimate activities on the construction located in the Kingdom of Cambodia. The certificate can be issued as long as the construction does not pose a risk to human life, property and has no adverse effect on public security or order.

3. APPLICATION PROCEDURE

There are three competent authorities who are in charge of issuing the Certificate of Occupancy, meaning each construction owner shall file their application to all three competent authorities specified within Sub-Decree 224 on Construction Permits (“SD 224”).

The three competent authorities are:

• The Minister of the Ministry of Land Management, Urban Planning and Construction;
• The Governor of the Board of Governors of the Capital & Provinces; and
• The Governor of the Board of Governors of the Municipalities, Districts or Khans.

3.1 Enforcement Post the Law on Construction

Since the enforcement of the Law on Construction, before using the construction the construction owner shall apply for a Certificate of Occupancy or a provisional Certificate of Occupancy with the competent authority and pay the public service fee. The construction owner is required to file the application form with the following documents in three (3) copies (certified by the competent authority):

• Cambodian Identity Card or Passport of the Construction Owner or Representative
• Certificate of Incorporation and Memorandum and Articles of Association (if a Company)
• Authorization Letter executed by the Company (if a Company)
• Possession Right Letter issued by the competent authority
• Land Plot Letter issued by the Department of Land Management, Urban Planning and Construction, and the Cadastral of the Capital or Province
• Extracts from Actual Construction Plans
• Construction Quality and Safety Inspection Report (if any)
• Construction Contract (if any)
• Relevant Documents of Construction Contractor (if any)
• Land and Construction Material Experimental Report (if any)
• Construction Permit (if any)
• Opening Construction Permit (if any)

Note: The competent authority may require additional documents based on the construction type and conditions.

After the filing date, the review and approval process of the application and supporting documents may take:

• Minister of the Ministry of Land Management, Urban Planning and Construction takes around 20 days; and
• Governor of the Board of Governors of the Capital & Provinces takes around 15 days; and
• Governor of the Board of Governors of the Municipalities, Districts &Khans takes around 10 days.

3.2. Prior Enforcement of the Law of Construction

The procedure and required documents are exactly the same as the application of the owners using the construction after the enforcement of the Law on Construction; other than the timeframe of the approval process. The timeframe of the approval process at the competent institutions takes slightly longer, which is specified as follows:

• Minister of the Ministry of Land Management, Urban Planning and Construction takes around 30 days; and
• Governor of the Board of Governors of the Capital or Provinces take around 15 days; and
• Governor of the Board of Governors of the Municipalities, Districts or Khans takes around 15 days.

Art. 13; 18 and 24, PK 177
Notification No. 341, dated September 25, 2020

3.3. Changing the Use of Construction

In the event the construction owner has changed the construction’s function as stated within the Certificate of Occupancy, or makes any changes relating to the use of the construction, the owner is obliged to renew the Certificate of Occupancy and seek the approval of the competent authority.

• Minister of the Ministry of Land Management, Urban Planning and Construction takes around 30 days; and
• Governor of the Board of Governors of the Capital or Provinces take around 15 days; and
• Governor of the Board of Governors of the Municipalities, Districts or Khans takes around 15 days.

Note: All construction owners who are using or undertaking any business activity on constructions built before the enforcement of the Law on Construction, should have applied for the certificates of occupancy before November 02, 2021. If the application has not been made by this date, they may be liable for a penalty, regulated by the Law on Construction.

Art. 13; 18 and 24, PK 177
Notification No. 341, dated September 25, 2020

4. RENEWAL OF THE CERTIFICATE OF OCCUPANCY

The construction owner is obligated to renew the Certificate of Occupancy as follows:

• Constructions used other than for residential purposes have to renew at least every 5 years;
• Constructions with residential purposes have to renew at least every 10 years.

Please be aware that after the enforcement of the Law on Construction, any construction which is used without a Certificate of Occupancy or is in non-compliance with Law on Construction, is subject to punishment and penalties under Cambodian laws and regulations.