Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Department of Land Management and Archives has temporarily suspended a government provision that required only licensed companies to conduct real estate transactions in metropolitan and sub-metropolitan cities across Nepal.
In a notice issued on Tuesday, the department said the rule will remain on hold until companies that have obtained licenses receive permission to operate Land Service Centers (Bhumi-Sewa Kendras). These centers are required to facilitate property transactions through the government’s land information system.
Earlier, the department had issued a circular on Falgun 11 stating that, starting Falgun 25 (March 9), real estate transactions in metropolitan and sub-metropolitan areas would be mandatory only through licensed companies. However, the latest notice suspends that decision until further orders.
According to the department, the legal framework requires licensed firms to run Land Service Centers and conduct property transactions through the digital land information system. Since many licensed companies have not yet received approval to operate such centers, the earlier directive has been temporarily halted and transactions will continue under the previous system.
The department said 44 companies have so far obtained licenses to operate real estate transactions. A total of 197 companies applied, though some applications are still under review while others were rejected or blacklisted.
Under the Malpot Regulation 2036, licensed firms must pay a fee of Rs 500,000 for transactions worth up to Rs 50 million, and Rs 1 million for transactions exceeding that amount. Licensed companies will be allowed to operate within six metropolitan cities and 11 sub-metropolitan cities.
The government had earlier published a notice in the Nepal Gazette on October 13, requiring companies handling real estate transactions exceeding Rs 30 million at a time to obtain official permits.
The notice was issued under provisions of the Malpot Act, which mandates obtaining licenses for conducting large-scale real estate transactions and outlines the procedures for applying for and granting such permits. The license, once issued, remains valid for five years.
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