Only licensed individuals and companies can conduct business in real estate, as announced in the budget
Kathmandu, the next year’s budget has also addressed the issue of making the real estate business transparent and systematic. Due to the lack of proper permission, individuals and organizations can still buy and sell real estate without any formal documents. Thus, the government plans tightening of restrictions on the unofficial real estate industry in the upcoming year.
In a recent announcement, Finance Minister Janardan Sharma emphasized the need to streamline and make transparent real estate transactions, which will only be made available to professionals and companies licensed by official bodies. In addition, he said that all real estate agents and companies should possess a government-issued license. City and sub-metropolitan budgets state that the same setup will be in place starting with the next fiscal year, and it will also be applied to all local governments. There is a great deal of anonymity in the real estate industry at present due to the fact that people and organizations can buy and sell real estate without getting permission.
On May 10, the government unveiled a program and policy that stated that it would implement strict measures against the illegal purchase and sale of real estate. According to President Bhandari, when discussing the policy and program for the coming year before the federal parliament, special arrangements would be made for the buying and selling of real estate.
According to Janak Raj Joshi, Joint Secretary and Spokesperson of the Ministry of Land, the way has been cleared for the government to implement its policy of buying and selling real estate only through licensed entities. To bring formal land transactions into the economy, the government’s policy and program for Fiscal Year 077/78 will implement ‘Land Market’. In order to study this issue, the Ministry of Land has appointed a committee. According to the study, it makes sense to set up a market for land transactions in a similar way to the way stocks are traded.
Starting next year, the real estate business will become much more systematic and practical. As part of the budget for the next year, the government plans to make the real estate valuation system practical, uniform, and based on a geographical information system.
Similarly, it has been announced in the budget to provide land ownership registration certificates to the households which have been deprived of ownership for decades by measuring and registering the village block lands which are exempted from survey and the Swabasi, Vanissa and other lands which are exempted from registration.