Timeframe of establishment of a Board of regulators in Co-Owned Buildings REF#5105

Due to the growing numbers of condominiums in Cambodia, the Royal Government had to adopt regulations to govern Cambodia’s property management industry. One of them is the Sub-Decree No. 126 on the Management and Use of Co-Owned Building.

As stated in the sub-decree, a ‘Management Board or an ‘Executive Committee’ for the co-owned building management should be established. However, no specific details or guidance are provided as to when a ‘Management Board or ‘Executive Committee’ should be established.

Without specific guidance on the timeframe within which a ‘Management Board or an ‘Executive Committee’ should be established, discretion on when to enact this fall upon the developer. A co-owned building developer may wish to have minimal or no responsibility in relation to ongoing co-owned building management and consequently establish a ‘Management Board or an ‘Executive Committee’ upon launching or opening the co-owned building. Establishing a ‘Management Board or an ‘Executive Committee’ comprised of co-owners who are not property management professionals at this early stage could pose a high risk to establishing technical and property management services at a co-owned building. Conversely, a developer may not wish to relinquish property management responsibilities to a ‘Management Board or an ‘Executive Committee’ for many years due to the ability to charge a fee for such property management services.