Buying or Acquiring a Property, Land or House in Nepal – Is it complicated?
Buying or Acquiring a Property, Land or House in Nepal – Is it complicated?
1. Applicable Laws:
• Constitution of Nepal
• National Civil Code, 2017
Acts
• Land Concerning Act, 2021
• Land Acquisition Act, 2034
• Survey and Measurement Act, 2019
• Land Revenue (Malpot) Act, 2034
Regulations
• Land Revenue (Malpot) Regulation, 2036
• Survey and Measurement Regulation, 2058
• Land Acquisition Rule, 2026
Orders • Orders relating to exemption of Land Ceiling, 2078 (2021)
2. Property:
Property is defined as anything that a person or business has its legal title. It includes any cash, goods, or work if such cash, goods, or work can be used or transacted in or the title of that can be transferred by the purchase, sale or otherwise or any benefit can be derived. In other words, it also refers to owned things.
There are mainly two types of property. They are:
There are different laws that provisions about Property Acquisition.
A. Constitution of Nepal:
Article 25 of the Constitution of Nepal mentions that every citizen has the right to acquire, own, sell, dispose, acquire business profits from, and otherwise deal with property.
B. The National Civil Code, 2017:
Partition of property [Sec 216]
• At the time of partition of a common property, a deed of partition in writing is executed between coparceners.
• Equal partition of property as well as equal partition of debt is done.
Procedures for a corporate body while purchasing or transferring property [Sec 426]
– Decision of Board of directors of the corporate body to any member of the Board of Directors or employee to transfer the property that is in the name of that corporate body and same is the procedures for the purchase or obtain of the property in the name of the corporate body.
Restriction on transfer of immovable property to foreigner [Sec 432]
• Without the prior permission of the Government of Nepal, one cannot transfer their immovable property to a foreigner.
• If anyone transfers it, then the deed of such transaction is considered as void.
Foreigner to transfer partition share or inheritance, if any obtained [Sec 433]
• Except permitted by Government of Nepal, a foreigner shall not be eligible to be transferred to or registered in his or her name nor shall s/he be entitled to enjoy the income of that property.
This provision is not applied to Non-resident Nepali.
Conditions for Remortgaged (Lakhbandaki) of the property in mortgage [Sec 445]
• A person who has obtained the property in mortgage.
• For some consideration for an amount which is equal to, or lesser than the amount that is mentioned in the deed of mortgage.
Time Period of remortgaged of the property is less than the period of possession and enjoyment under the mortgage.
Prohibition for foreigner to mortgage the property [Sec 451]
• Without the prior approval of the Government of Nepal, A foreigner other than a person having the non-resident Nepali Citizenship is prohibited to mortgage an immovable property.
Land Act, 2021 (1964)
Sec 7: Upper Ceiling of Land
The upper Ceiling of land that is allowed to be owned by the landowner is mentioned below:
S.N. Region Upper Ceiling
1. All the terai region including inner terai 10 Bigha
2. Kathmandu Valley 25 Ropani
3. All hilly regions except Kathmandu Valley 70 Ropani
For House and Premises
S.N. Region Upper Ceiling
1. All the terai region including inner terai 1 Bigha
2. Kathmandu Valley 5 Ropani
3. All hilly regions except Kathmandu Valley 5 Ropani
Property Acquisition in Nepal by Non-Resident Nepali
Who are Non-Resident Nepali Citizens:
1. Foreign citizen of Nepali origin
2. Nepali citizen residing abroad.
Non-Resident Nepali Act, 2064 & Non-Resident Nepali Rules, 2066 talks about Property Acquisition in Nepal by Non-Resident Nepali.
Foreign Citizen of Nepalese Origin are those persons who him/herself or whose father, mother, grandfather, or grandmother was a citizen of Nepal at any time and has acquired the citizenship of any other foreign country other than a member of SAARC.
Nepali Citizen residing abroad are those Nepali citizens who have been residing in any foreign country for at least two years by doing any profession, occupation, business, and employment except a Nepalese citizen residing in a member country of SAARC or serving in a diplomatic mission or consulate situated in a foreign country under the assignment of the Government of Nepal and doing study in an academic institution situated in a foreign country.
Property Rights provided to the foreign citizen of Nepalese origin (Section 10, Rule 11)
The following are the property rights provided to the foreign citizen of Nepalese origin:
• Foreign Citizen of Nepalese origin may purchase the below mentioned land or other property in order to reside within Nepal for him/herself on his/her own family.
S.N. Region Ceiling
1. Kathmandu Valley Maximum 2 Ropani (10952 Sq. Ft.)
2. Municipalities of Terai District Maximum 8 Kattha
3. Other municipalities except in Kathmandu valley and municipalities of Terai District Maximum 4 Ropani
4. Village Executive of Terai District except municipalities of Terai Maximum 1 Bigaha
5. Other areas than mentioned above Maximum 10 Ropani
But this provision doesn’t apply if any foreign citizen of Nepali origin has received any immovable property in the status of a Nepali citizen.
• A foreign citizen of Nepalese origin may assign (transfer) the property purchased to anyone.
• The inheritance of the property of a foreign citizen of Nepalese Origin takes place due to his/her death and if s/he has any property in Nepal. The inheritance goes to his/her heir who is a foreign citizen of Nepalese origin having identity card and in the absence of such heir it shall be decided as provided by the prevailing law.
Procedures to acquire property in Nepal
Application mentioning the location, area and the price that has been fixed for the purpose of purchase of the land which s/he intends to purchase in his/her own or his/her family’s name,
Inquiry of the application
If the application is found valid then permission by the Secretary to purchase the land and other immovable property within Nepal, in the name of the applicant or his/her own family
After receiving the permission, the Officer responsible for the registration pass of the land shall make the registration of the land in the name of the foreign citizen of Nepali origin.
Blue Colored Certificate while issuing Landowner Certificate by the Concerned Land Revenue Office
Documents required while giving application
• Application Form
• Original and one copy of Non-Resident Nepali Card
• Original and one copy of Certificate of Foreign Citizenship and Passport
• Original and one copy of Landownership Certificate
• Copy of Citizenship of the seller
• Copy of Trace Map
• Receipt of Tax Clearance in the current fiscal year
• Lawful Application for the Land Purchase
• Copy of Certificate of House Completion (Ghar Sampana)
No Application fee is given to the Ministry of Foreign Affairs while giving the application for the recommendation for the purchase of land.
Information of the applicant:
• Name. Surname
• Date of Birth
• Nationality
• Details of the Foreign Citizenship
• Details of Passport
• Name and Address of recent country of domicile
• Name and Full Address of the family members of Non-Resident Nepali who is in Nepal and their relationship
• Details of Parents of Non-Resident Nepali
• Details of Non-Resident Nepali Identity Card
• Details of the land if any members have before this
Details of the Seller
• Name, Surname of the Landowner
• Citizenship Number and Address
• Details of the Land
• Details of the House
