Every transfer of land or a house in Nepal must be registered at the Land Revenue Office, known locally as Malpot Karyalaya, for the district where the property sits. Until the deed is registered and a new ownership certificate (lalpurja) is issued in the buyer's name, the buyer has no legal title, no matter how much money has changed hands. This article explains the common types of transfer, the documents each requires and the fees you should budget for.
Types of property transfer
The most common transfer is a sale deed, called a rajinama, where the seller passes ownership to the buyer for a price. A gift deed (bakaspatra) transfers property without payment, usually between family members, and attracts a lower fee if the parties are close relatives. Inheritance transfers (namsari) happen after the death of an owner and require a relationship certificate from the ward office. A partition deed (ansabanda) splits jointly owned family property among heirs entitled under the Civil Code 2074.
| Transfer type | Nepali term | Typical registration fee (Kathmandu Metropolitan) |
|---|---|---|
| Sale | Rajinama | 5% of valuation, plus 1.5% local tax |
| Gift to close relative | Bakaspatra | 1% of valuation |
| Inheritance | Namsari | Nominal fee, relationship certificate required |
| Partition | Ansabanda | Nominal fee per parcel |
Before you sign: check the title
Ask the seller for the original lalpurja and compare it with the records at Malpot, which will confirm the owner's name, the plot (kitta) number, the area and any restrictions. Check for a rokka, which is a hold placed on the land by a bank, a court or a government office; property under rokka cannot be transferred until the hold is lifted. Visit the Survey Office (Napi) for a trace map and confirm that the physical boundaries match the map, because boundary disputes are the single most common reason property litigation ends up in the District Court.
- Original lalpurja (land ownership certificate) in the seller's name
- Malpot record confirming no rokka, mortgage or pending case
- Trace map and field book extract from the Survey Office
- Tax clearance showing land revenue (malpot) paid up to date
- Property tax receipt from the municipality
- If the seller is married: spouse's consent, since a spouse has a claim under the Civil Code
Registration day at Malpot
Both parties, or their attorneys under a registered power of attorney, must appear in person at the Land Revenue Office with two witnesses each. The deed is drafted by a licensed deed writer (lekhapadhi byabasayi) or your lawyer in the prescribed format, printed on the office's stamped paper, and read out before the registration officer. After fingerprints and signatures are taken and fees are paid at the bank counter, the officer endorses the deed, and the new lalpurja is usually issued the same day or the next working day.
Capital gains and other taxes
The seller pays capital gains tax on the difference between the sale value and the purchase value shown in the previous deed. Under the Income Tax Act the rate is 5% if the property was held for more than five years and 7.5% if held for less, for individuals; Malpot collects it as advance tax at the time of registration. The buyer pays the registration fee, and both parties should keep the receipts because the IRD may ask for them when the buyer later sells.
The deed you register is the deed the court will read. Every promise that is not written into it is, for practical purposes, not a promise.