Real Estate License in Nepal | Nepal Real Estate License Requirements for House & Land Transaction Service Providers
A. Introduction
In Nepal, carrying out a real estate transaction requires a real estate license. Pursuant to the governing laws of Nepal, a “real estate transaction” means mean the act of assisting, whether for a fee or without a fee, in the purchase or sale of someone’s house or land other than a purchase and sale carried out through mutual agreement between natural persons, providing consultation to a person purchasing or selling such house or land, or otherwise providing services in that regard on a professional or commercial basis in any other manner. This article outlines the process for obtaining a real estate license in Nepal.
B. Governing Authority
The governing authority responsible for issuing real estate licenses is the Department of Land Management and Archive (“DOLMA”).
C. Governing Laws
The laws governing real estate licensing in Nepal are as follows:
S.N. | Governing Laws |
1. | The Land Revenue Act, 2034 |
2. | The Land Revenue Regulation, 2036 |
D. Procedure for Obtaining a Real Estate License in Nepal
To obtain a real estate license, the following procedure must be followed:
i. Application submission
Prepare the required documents and submit the application, along with required documents, to DOLMA for the license.
ii. LRIMS approval:
Obtain approval for the Land Service Centre to conduct real estate transactions through the Land Records Information Management System (“LRIMS”), or use the LRIMS of another real estate license holder.
iii. Review and issuance:
DOLMA examines the application, and if it meets the requirements, issues the real estate license.
E. Required Information and Documents
The following information and documents are required to obtain a real estate license:
i. Areas in which the real estate transaction is intended to be carried out
ii. Certificate of Incorporation of the company or firm
iii. Memorandum of Association (“MOA”) and Articles of Association (“AOA”)
iv. Share Registry Certificate
v. PAN Registration Certificate
vi. Latest Tax Clearance Certificate
vii. Detailed Project Proposal
viii. Board Resolution
ix. Website, email, and contact number of the applicant
x. Obtaining Police clearance Letter from Central Crime Record Bureau of Nepal Police
F. Real Estate License Fee
The license fee depends on the transaction limit permitted under the license at a time:
Types of License | License Fee |
License to transact real estate of upto NPR 5 crores at a time | NPR 5,00,000 |
License to transact real estate of more than NPR 5 crores at a time | NPR 10,00,000 |
G. Renewal and Renewal Fee
A real estate license is valid for 5 years and must be renewed at least 35 days prior to expiry. The renewal fees are as follows:
Types of License | Renewal Fee |
License to transact real estate of upto NPR 5 crores at a time | NPR 4,00,000 |
License to transact real estate of more than NPR 5 crores at a time | NPR 8,00,000 |
A licensee who is unable to renew the license within the period specified above may still renew it within 90 days from the date of expiry, subject to an additional fee of NPR 50,000 on top of the renewal fee stated above.
H. Grounds for Revocation of the Real Estate License
DOLMA may revoke a real estate license at any time under the following circumstances:
- The license was obtained by submitting false information
- The conditions specified at the time of issuing the license have been violated
- Directions issued by DOLMA have been violated
- The license has not been renewed
I. Offenses and Penalties
| Offense type | Punishment |
| If anyone conducts a real estate transaction without obtaining a license, and the transacted amount of the transaction is ascertained | Fine based on the transacted amount (bigo) |
| If anyone conducts a real estate transaction without obtaining a license, and the transacted amount (bigo) is not ascertained | Fine of up to twenty-five lakh rupees, or imprisonment for up to six months, or both |
| If a licensed person conducts a real estate transaction in violation of this Act, the rules framed under this Act, or the conditions attached at the time of granting the license, and the transacted amount (bigo) is ascertained | Fine based on the disputed amount (bigo) |
| If a licensed person conducts a real estate transaction in violation of this Act, the rules framed under this Act, or the conditions attached at the time of granting the license, and the disputed amount (bigo) is not ascertained | Fine of up to ten lakh rupees |