Author: Sawol Singh

I. Introduction

II. What Constitutes a Real Estate Transaction Service?

Under Section 26A (Explanation), “house and land-related transaction” includes commercial or professional services, such as:

1. Assisting any person in buying or selling a house or land (with or without remuneration),
2. Providing consultation or advice for the purchase or sale of real estate,
3. Offering any other professional service related to the transaction of house or land,

Exception: Purchases and sales conducted directly between natural persons based on mutual agreement.

III. To whom the licensing requirement is applicable?

This licensing requirement applies to both natural persons, and legal persons (firms, companies).

However, the requirement to obtain a real estate (house and land transaction) license applies only in those geographic areas or transaction-value thresholds as specified by the Government of Nepal through a notice published in the Nepal Gazette.

IV. Eligibility, Required Documents and Validity

1) Eligibility Criteria

The prevailing legal framework does not prescribe personal qualifications (age, education) for the real estate service providers. However, applicants must submit all required details, provide prescribed documents, pay the applicable fees, and satisfy the authority during its inquiry and verification.

2) Required Documents

For natural persons or legal persons, documents include (as applicable):

1. Application in the format of Schedule-8,
2. For companies/firms:

i. Copy of the company or firm registration certificate established for the purpose of conducting real estate (house and land) transactions

ii. Copy of the Memorandum and Articles of Association (for companies)

iii. Copy of the updated shareholder register

iv. Copy of the Permanent Account Number (PAN) registration certificate

v. Copy of the latest tax clearance certificate up to the most recent fiscal year

vi. Detailed business plan relating to the proposed real estate transaction activities

vii. Copy of the board resolution of the company or firm’s governing body approving the submission for obtaining the real estate transaction license

viii. Details of the applicant’s website, email address, and contact person’s phone number

Note: Applications for obtaining or renewing the license must be submitted to the authority designated by the Government of Nepal in the Nepal Gazette notice, which may be a federal authority, a provincial authority, or a local-level authority.

3) Validity Period

Each license is valid for five years from the date of issuance.

V. Each license is valid for five years from the date of issuance.

1) License Fee Structure

S.N.	Category of Transaction Capacity	License Fee
1.	Individuals/entities conducting real estate transactions up to NPR 50,000,000 (Nepalese Rupees Fifty Million) at a time	NPR 5,00,000
2.	Individuals/entities conducting transactions exceeding NPR 50,000,000 (Nepalese Rupees Fifty Million) (no upper limit)	NPR 10,00,000

2) Renewal of License

License holders must apply for renewal 35 days before expiry of the five-year term. The applicable renewal fee are as follows:

S.N.	Category of Transaction Capacity	Renewal Fee
1.	Transaction capacity up to NPR 50,000,000 (Nepalese Rupees Fifty Million)	NPR 4,00,000
2.	Transaction capacity exceeding NPR 50,000,000 (Nepalese Rupees Fifty Million)	NPR 8,00,000

3) Documents Required for Renewal

Applicants must submit the following documents along with the renewal fee:

1. Details of transactions carried out by the company or firm
2. Audited financial statements of the latest fiscal year
3. Latest tax clearance certificate of the company or firm

4) Renewal After Expiry

If the renewal application is not filed within the prescribed timeline, the license holder may still apply within 90 days from the date of expiry. A late renewal fee of NPR 50,000 is payable in addition to the applicable renewal fee.

VI. Operational Obligations of License Holders

The legal framework imposes several ongoing obligations on individuals and entities holding a real estate transaction license. Under Section 26C of Land Revenue Act, 2034 (1978), the licensing authority is empowered to conduct inspection and supervision of licensed persons at any time. For this purpose, the authority may issue necessary directives regarding the manner in which the license holder must conduct real estate transaction activities.

Correspondingly, license holders are required to fully comply with all directives issued by the authority. They must extend cooperation during inspections and supervision, and are obliged to provide any documents, records, or information requested by the inspecting officer. Failure to comply with these operational obligations may trigger regulatory action, including cancellation of the license.

VII. Requirement to Use the Land Information System (GIS Portal)

The licensed real estate service providers are required to conduct real estate transaction-related activities through the Government’s Land Information System (भू-सूचना प्रणाली). For this purpose, a license holder must operate a Land Service Centre (भू-सेवा केन्द्र) in accordance with the prescribed standards.

If the license holder does not operate their own Land Service Centre, they are required to conduct transactions through the Land Service Centre operated by another licensed real estate service provider.

VIII. Grounds for Cancellation of License

Under Section 26D of Land Revenue Act, 2034 (1978), a license may be cancelled if:

1. It was obtained by submitting false information,
2. The licensee violates the conditions mentioned in the license,
3. The licensee disregards directives given by the authority,
4. The licensee violates the Act or Regulations,The license is not renewed.

The authority may cancel the license at any time upon occurrence of these grounds.

IX. Penalties for Violation

Under Section 26E of Land Revenue Act, 2034 (1978), any person who conducts real estate transactions without obtaining the required license is subject to:

1. a fine of up to NPR 25,00,000; or
2. imprisonment of up to six months; or
3. both.

If the loss (बिगो) caused by such unauthorized transaction can be ascertained, a fine equal to the amount of the loss may also be imposed.

Furthermore, if a licensed person violates the Act, Regulations, or license conditions, the authority may impose a fine equal to ascertained loss, or up to NPR 1,000,000 (Nepalese Rupees One Million) if loss cannot be calculated.

X. Conclusion

The recent amendments to the Land Revenue Act, 2034 (1978) and Land Revenue Regulations, 2036 (1980) introduce a comprehensive regulatory framework governing professional real estate transaction services in Nepal. By mandating licensing, digital record-keeping, and a structured system of oversight, the regime seeks to enhance transparency, reduce risks of fraud, and align the sector with broader compliance objectives, including anti-money laundering considerations. Individuals and entities intending to engage in real estate transaction services must therefore ensure full adherence to the licensing, operational, and reporting requirements to avoid regulatory sanctions and ensure lawful operation.

I. Introduction

A writ is a formal legal instrument issued by a court, directing an individual or entity to perform or refrain from performing a specific act. Rooted in the common law tradition, writs serve as powerful procedural tools that uphold the rule of law, enforce judicial authority, and protect individual rights. They are particularly significant when a person seeks to challenge state action or public authority in circumstances where fundamental rights have been violated or where no effective alternative remedy exists.

Under the Constitution of Nepal, 2072 (2015), the Supreme Court and High Courts hold broad writ jurisdiction. Articles 133(3) and 144(2) authorize the issuance of writs, including habeas corpus, mandamus, certiorari, prohibition, and quo warranto, for the enforcement of fundamental rights and other legal purposes.

Similarly, Article 151(1) empowers District Courts to hear petitions such as habeas corpus and prohibition unless otherwise restricted by law.

Thus, writ jurisdiction forms a cornerstone of constitutional accountability and procedural justice in Nepal.

II. General Principles of Writ

The general principles of writ are set out below:

a) Existence of a Prima Facie Violation

There must be a clear and apparent infringement of a legal or fundamental right.

b) No Detailed Examination of Evidence

Courts generally do not engage in extensive evidence evaluation during writ proceedings.

c) No Detailed Examination of Evidence

The writ may only be issued if no effective alternative legal remedy is available.

d) Petitioner Must Approach with Clean Hands Petitioner Must Approach with Clean Hands

The applicant must act fairly, honestly, and in good faith to seek equitable relief.

e) Invoking the Court’s Extraordinary Jurisdiction

Writs are issued under the court’s extraordinary jurisdiction, not as a matter of routine.

f) Directed Primarily Against Public Authorities

Writs are usually issued against government bodies, public officials, or entities performing public duties.

III. Types of Writ

Types of writs are as given below:

a) Habeas Corpus

“Habeas Corpus” is a Latin term that literally means “you may have the body.” This writ is issued when a person is detained without legal authority or beyond the scope of legal powers. Its primary objective is to secure the release of an individual from unlawful detention. If the court finds the detention to be illegal, it orders the immediate release of the detainee.

b) Mandamus

“Mandamus” is a Latin term meaning “we command.” This writ is issued to compel a public officer or authority, who is legally obligated to perform a certain duty but fails to do so, to carry out that duty. For example, if a police officer refuses to register a complaint and, despite the filing of a prior grievance, the complaint remains unregistered, the court may issue a writ of mandamus directing the officer to register the complaint.

c) Certiorari

The term “Certiorari” literally means “to be certified.” This writ is issued by a higher court to quash or annul a decision made by a government or public authority that is unlawful or beyond its jurisdiction. To obtain a writ of certiorari, it must be evident that the principles of natural justice were violated or that the decision lacked proper legal authority. Judicial review is an important aspect of the writ of certiorari. It refers to the judiciary’s power to examine whether laws passed by parliament are consistent with the Constitution. If a law is found unconstitutional, the court may declare it void or invalid.
In Nepal, judicial review began under the Constitution of the Kingdom of Nepal, 2047 (1990). Although that Constitution did not explicitly create a constitutional bench, special benches of the Supreme Court adjudicated writ petitions involving constitutional matters.

A notable example is the case of Man Bahadur Bishwakarma, where the Supreme Court examined whether Nepal’s legal system, while constitutionally prohibiting caste-based discrimination, could still adhere to certain pre-existing civil law traditions without violating constitutional principles.

d) Prohibition

The writ of prohibition literally means “to forbid” or “to prevent.” It is invoked when a public officer, authority, or agency is about to take an unlawful action or make a decision that may infringe upon someone’s rights or interests. Since the action has not yet been finalized, the writ seeks to restrain the officer or agency from proceeding further, thereby preventing potential harm.

e) Quo Warranto

The term “Quo Warranto” means “by what warrant?” or “what is your authority?” This writ challenges the legal authority of an individual occupying a public office. If it is shown that the individual has exceeded their tenure, lacks required qualifications, or is otherwise unauthorized to hold the position, the court may issue this writ to prevent them from continuing in the office.

IV. Court Adjudication Procedures and Writ Jurisdiction

The procedure for court adjudication is as given below:

a) General Court Procedures
Courts in Nepal follow general, special, or summary procedures for adjudicating rights and obligations under statutory laws.

b) Fundamental Rights
Rights guaranteed by the Constitution of Nepal fall directly within writ jurisdiction when violated.

c) Writ Proceedings
Writs are typically used when:

• fundamental rights have been violated, or
• no adequate remedy is available under ordinary legal processes.

d) Courts Empowered to Issue Writs

• District Courts
• High Courts
• Supreme Court

These powers are derived from Articles 133, 144, and 151of the Constitution.

e) Regulatory Framework

Each court conducts writ procedures as outlined by its respective regulations.

V. Classification of Writ Procedure

The writ procedure is generally divided into:

• Procedure for the Writ of Habeas Corpus
• Procedure for Other Writs

1) Procedure for the Writ of Habeas Corpus

2) Procedure for other writ (Certiorari, Mandamus, Prohibition, Quo-Warranto)

Step	Procedure	Description
I.	Filing and Jurisdiction	These writs can be filed only in the Supreme Court. A writ for judicial review can be filed only by a Nepalese citizen in the Supreme Court. Judicial review challenges the constitutionality of laws enacted by the Parliament, State Parliament, or local bodies.
II.	Constitutional Bench	Preliminary and final hearings for such writs are held before the Constitutional Bench. The bench consists of 5 members: the Chief Justice and four judges appointed on the recommendation of the Judicial Council.
III.	Petition Requirements	The writ petition must clearly state the grounds for filing and the court’s jurisdiction (Articles 46, 133 of the Constitution; Rules 40 and 41 of Supreme Court Regulation, 2074). It must describe the events leading to the violation of rights and specify the respondent’s actions or inactions. An electronic copy of the petition is mandatory. If the petition exceeds three pages, a summary of up to two pages must be attached.
IV.	Preliminary Hearing	Conducted by a single bench. If the petition has merit, the court issues a show cause order requiring the respondent to appear and explain. If the petition lacks merit or the respondent’s actions comply with law and constitution, the writ may be dismissed. The petitioner must specify if an interim order is sought.
V.	Public Interest Litigation (PIL)	The petitioner must demonstrate no personal interest and that the issue affects the public or a community. Must show efforts to resolve the issue by other means have failed. Should cooperate with the court, even if the case proceeds despite delays (Mayad/Tarekh). The writ deadline (Mayad/Tarekh) can be extended once for up to 15 days, and in special cases (Kiriya, childbirth, calamities), an additional 15 days extension is possible.
VI.	High Court Writs	Writs can also be filed in the High Court, governed by Article 144 of the Constitution and Rule 41 of the High Court Regulation, 2073. PILs at the High Court require prior application to relevant authorities showing attempts to resolve the matter
VII.	Injunction Applications	The High Court and District Courts may hear applications for injunctions to prevent unlawful obstruction of legal rights enforcement. Such applications are special petitions, similar but not identical to writ petitions.
VIII.	Nature of Certiorari	Issued to halt suspected unlawful actions under the Civil Rights Act, 2012 (1955). Primarily used where there is suspicion of harm or illegality. Certiorari protects existing rights but does not decide ownership disputes; the status quo is maintained until final judgment.
IX.	Maintaining Status Quo	Petitioners may seek orders to maintain the status quo in district or high courts, especially concerning civil rights violations under the National Civil (Code) Act, 2074 (2017).

 Disclaimer: This article is for general informational purposes only and does not constitute legal advice, advertisement, personal communication, solicitation or inducement. No attorney-client relationship is created through this content. Gandhi & Associates assumes no liability for any consequences resulting from actions taken based on information contained herein.

 For quick legal assistance:

Phone/Viber/WhatsApp: +977 9709035477

For specific legal advice regarding writ related procedure in Nepal, please contact our office to schedule a consultation with our experts.