Transactions of Property Valued Over NPR 30 Million Must Now Be Conducted Through Licensed Companies

April 22, Kathmandu – The government has decided to require all property transactions exceeding NPR 30 million to be conducted exclusively through licensed companies. This provision will be effective from Tuesday, mandating that all such deals be processed only through companies authorized to operate property transactions.

Following the election of a majority government after the democratic movement, the government has adopted a zero-tolerance policy toward corruption. In line with this policy, intermediary involvement in real estate transactions has been eliminated by making company-mediated transactions mandatory.

Shortly after the new government took office, police detained intermediaries operating within multiple Land Revenue Offices across the country. Due to unnecessary fees and various delays experienced at Land Revenue and Survey Offices, the policy now requires transactions to be conducted exclusively through licensed companies to improve services and transparency.

The Department of Land Management and Archives has issued instructions that property transactions be conducted only through companies or associations holding official permits, publishing a list of these approved entities. According to the department, six companies have permission to operate land services. While 69 companies have licenses for property transactions, only six are currently capable of conducting the required work.

The department has directed Land Revenue Offices in Kathmandu’s Kalanki and Chabahil, Dharan in Sunsari, Simara in Bara, Hetauda in Makwanpur, Bharatpur and Chanouli in Chitwan, Pokhara and Lekhnath in Kaski, Tulsipur in Dang, and Butwal in Rupandehi to implement this system.

Since the past Falgun (February-March), the regulations have stipulated that all property transactions valued over NPR 30 million within metropolitan and sub-metropolitan municipalities must be carried out only through permitted companies or associations.

According to Rule 23(Th.) of the Land Revenue Regulations, 2036 (8th amendment 2082), licensed individuals must operate land service centers and conduct transactions through a geospatial information system. Without permission to operate these centers, the directive could not be effectively implemented.

There had been a prevalent practice at Land Revenue Offices where employees worked under intermediaries and did not engage directly with clients, often charging extra fees. With the requirement for companies to conduct transactions, services are expected to become more accessible and transparent for consumers.

The Nepal Association of Chartered Accountants and Legal Professionals, Patan Branch, protested disciplinary actions taken against some Land Revenue Office staff. However, with intermediaries removed, direct service at the offices, which had been difficult, is expected to improve.

The involvement of licensed companies is believed to bring administrative improvements within Land Revenue Offices. Currently, clients must visit multiple accounting firms near the Land Revenue Office to complete tasks such as property purchase, sale, and surveying. Clients have complained that employees often refuse service without assistance from these firms.

All work at the Land Revenue Office is processed using the “Dolma” system, an online platform not readily accessible or user-friendly for the general public due to its complexity, making accounting assistance practically mandatory.

While employees have access to the system, and it is installed in Land Revenue Offices nationwide, staff members acknowledge it remains difficult for ordinary citizens to navigate.