The Real Estate Business & Pawnshop Regulator released a crucial new Notification on Obligations of Real Estate Developers and Condominiums on July 1, 2024, in accordance with the announcement made at the 19th Royal Government-Private Sector Forum on November 13, 2023, and in accordance with the recommendations made by Prime Minister Samdach Thipadei HUN Manet of Cambodia. In an effort to support the building and real estate industries, this notification establishes penalty exemptions for real estate developers, particularly those who develop bungalows and condominiums, for a set amount of time.

The main highlights of this Notification are as follows:

• Exemption from Fines and Penalties: Beginning on July 1, 2024, developers of condos and bungalows may be exempt from fines and penalties for a period of one year as long as they follow the guidelines set forth in Prakas No. 047. This grace period gives developers a window of time to comply with regulations without facing financial penalties. It lasts until July 1, 2025, or longer if the government chooses to prolong it.
• Putting Prakas No. 047 into Practice: Prakas No. 047 on the Rule and Procedures on Licensing and Permits for Real Estate Development Business, dated 26 September 2023, primarily covers the rules and procedures for licensing applications for real estate development businesses. Real estate developers must abide by these requirements in order to be eligible for this exemption.
• Mandatory Licensing Compliance: During this exemption time, real estate developers who do not currently hold a license must submit an application. Penalties and fines will be imposed again if the necessary development permissions are not obtained prior to the end of the exemption period.