Nepal

Registering Property in

Nepal

Listed below is a detailed summary of the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standard Property Transfer

  • Property Value: NPR 1,978,083.58
  • City: Kathmandu

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No. Procedure Time to Complete Associated Costs
1 Obtain tax clearance certificate and certificate of access and building from the Municipality (relevant ward committee)

The seller must go to the local government to certify the type of road that adjoins the property. Kathmandu municipality is divided into 25 wards. The seller has to go to the ward committee to take the certificate in one day and it costs Rs 3000. At the same time, he can obtain a tax clearance letter. A tax clearance certificate must be obtained from the Municipality regarding the payment of the property tax. If the property is not yet registered in the Municipality for tax purposes then it might take a few days to collect the necessary papers of building permit, land deed, land revenue papers, field visit of municipal engineers to verify and assess the property, etc. In any case it should not take more than seven days.
Many people do not regularly pay the property tax until they have to dispose of the property. The tax collection system is quite inefficient. It is then normal that they have to pay property tax when transferring the property.


Agency: Municipality 		1-2 days The cost of obtaining certificate is different in different municipality. In Kathmandu Municipal corporation it cost 105/- to 1005/- for obtaining certificate of access and building. - Rs. 5,000 for main road. - Rs. 3,000 for side road. - Rs. 2,000 for
2 Hire lekhandas or a junior lawyer

Legally, the parties can prepare the transfer deed by themselves, but normally it is done by the lekhandas, or scribes.
1 day Rs 7000
3 Registration of the deed and issuance of a new title certificate

The transfer deed is submitted for registration to the Land Revenue Office. The authenticity of the seller is checked by the Land Revenue Office against the Citizenship Certificate. The existence of liens or encumbrances on the property is also checked on the same day by the Land Revenue Office.
The registration fee (4.5% of property price in case of municipal areas, according to Finance Act of 2065 Nepalese calendar (2008),implemented in June 2008) is paid at the Land Revenue Office at the moment of applying for registration. Parties must sign and thumb print on the transfer deed. After the verifications of all documents by the officer, the transfer deed will be registered and the title certificate will usually be issued on the same day.
The documentation shall include:
Land Ownership Certificate (already in possession of the seller)
Citizenship Certificate of seller and buyer or/ Incorporation Certificate of Company
Tax clearance certificate from the Municipality/Village Development Committee (obtained in Procedure 1)


Agency: Land Revenue Office 		1-2 days 4.5% of property price (registration fee)
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