Mr. SUN Samnang (Samnang), Partner and Founder of Sotheaphal, Samnang, Sophy & Partners, has assisted a major client to file a first-ever hypothec assignment (or at least one of the few first hypothec assignments) with the cadastral office to transfer security over an immovable property from one security agent to another.
Prakas No. 30 on Procedure for Registration of Real Rights Pertaining to the Civil Code has been issued jointly by the Ministry of Land Management, Urban Planning and Construction and the Ministry of Justice, on 29 January 2013, and came into effect six months later, thus on 30 July 2013.
This inter-ministerial Prakas aims to ensure effective registrations of immovable property, including land, in accordance with the Civil Code, which was promulgated on 08 December 2007 but was not implemented until 21 December 2011. The edict regulates application procedures for registration of real rights over immovable property, including procedures for assignment of a hypothec (formerly known as mortgage).
Like many other laws in Cambodia, implementation takes time. Although there was a grace period of six months from the date of its issuance and long after its effective date, the implementation of the above Prakas remained much more difficult than expected, most likely due to scarce internal guidance within the cadastral administration for officials.
Thanks to the fine patronage from Samnang, however, the cadastral office has now accepted to register the first ever assignment of hypothec from a resigning security agent to a new security holder.
[Sun Samnang’s bio to be inserted]