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[The] Ownership Of Joint Housing Act, 2054 B.S. (1997)

Date of the Royal Seal and Publication
2054/09/07 BS (December 22, 1997)

Amending Acts:
1 Act for the Consolidation of Republic and Some Laws of 2066/10/7
Nepal Amending Acts, 2066 (2010) (10 January 2010)
2 Some Laws of Nepal Amending Act, 2072 (2016) 2072/11/13
(25 February, 2016)

Act No. 15 of the Year 2054 (1997)

===============
AN ACT MADE TO PROVIDE FOR THE OWNERSHIP OF JOINT
HOUSING
Preamble: Whereas, in urban areas of Nepal …….. the increment in the price
of land as a result of the pressure caused by overpopulation in urban areas of
Nepal has led to a situation whereby residents of cities may be deprived of
housing facilities;
whereas, it is expedient to solve the existing housing problems and
make arrangements for housing in a planned manner by selling appartments
smoothly through the development of joint housing and make arrangements
for the rights and duties in such appartments;
Be it enacted by Parliament in the twenty sixth year of the resign of
His Majesty Birendra Bir Bikram Shah Dev.


This Act come into force on the 15th of Jest 2065 B.S. (May 28, 2008)
 Deleted by the Act for the Consolidation of Republic and Some Laws of Nepal Amending Act, 2066 (2010)

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Chapter-1
Preliminary
1. Short Title and Commencement: (1) This Act may be called as
“[The] Ownership of Joint Housing Act, 2054 (2010)".
(2) It shall come into force on such date as the Government of Nepal
may by a notification published in the Nepal Gazettee, specify.
2. Definitions: Unless the subject or the context otherwise requires, in this
Act,-
(a) "Joint Housing" means and includes any building consisting of
two or more than two apartments with two or more floors built
on a plot of land and two or more than two buildings designated
as a block, pocket or any building of a similar designation and
the land, compound and complex ancillary thereto.
(b) "Apartment" means an unit of a building consisting of one or
more than one rooms that could be used independently in a joint
housing along with collective areas and facilities.
(c) "Promoter" means any corporate body incorporated under the
laws in force and authorized to build and operate joint housing
in pursuant to section 5.
(d) "Apartment Owner" means any person or corporate body
buying, leasing or possessing, subject to the terms and
conditions set forth in the agreement as referred to in this Act,
an apartment in any other manner.
(e) "Collective Area nad Facility" means the collective areas and
facilities as referred to in section 16.


This Act come into force on 2060/1/2 ( 15 April, 2003)

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(f) "Restricted Collective Areas and Facilities" means areas and

facilities built or meant only for certain apartment owners.
(g) "Agreement" means any arrangement entered into between a
promoter and an apartment buyer for the purchase, lease or
possession thereof in any other manner.
(h) "Committee' means a housing management committee formed
pursuant to section 24 to look after, manage and operate of a
joint housing.
(i) "Competent Authority" means a competent entity or person
designated as such by the Government of Nepal, by notification
published in the Nepal Gazettee.
(j) "Prescribed" or "As prescribed" means prescribed or as
prescribed in the rules made under this Act by the Government
of Nepal by notification published in the Nepal Gazettee.

Chapter-2
Provisions Relating to the Approval of Joint Housing:
3. Prohibition on the Construction of Joint Housing Without Approval:
Nobody may, except as otherwise provided for in the existing laws, build or
cause to be built a joint housing without the approval of the competent
authority.
4. Requirement to Make Application for Approval: A corporate body
wishing to build and operate a joint housing shall, along with the proposed
drawings, structural design, particulars of the land area and the ownership
thereof, the process of selling the apartment thereof particulars relating to
collective areas and facilities as well as a plan thereof, make an application

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to the competent authority in the prescribed format in order to obtain

approval for building and operating a joint housing.
5. Granting of Approval: In cases where an application has been made
pursuant to section 4, a competent authority shall, if he or she after carrying
out the necessary inquiry, finds that the prescribed procedure has been
followed, grant the applicant approval to build and opearte a joint housing.
6. Power to Ask for Additional Details or Documents : If the competent
authority deems if necessary, in the course of inquiry conducted pursuant to
section 5, to have additional details or documents, he or she may asks for
such details or documents from the applicant and it will be the duty of the
applicant concerned to submit forthwith the details or documetns so
demanded.
7. Prohibition to Pass Drawings Without Approval: Notwithstanding,
anything contained in the existing laws, an entity authorized to pass
drawings of a building may not, without the approval of the competent
authority authorized to do so pursuant to this Act, pass the drawings for the
building of a joint housing.

Chapter-3
Sale, Ownership and Transfer of Apartments
8. Sale and Other Provisions Relating to Apartments: (1) A promoter may
sell an apartment on a down payment or installment basis.
(2) A promoter may, by way of lease or otherwise, give the possession
of an apartment to any person or body.
(3) In cases where an apartment is sold or rented out or given
possession of pursunant to sub-section (1) or (2), an agreement shall be
concluded as referred to in section 15.
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(4) A promoter shall, in cases where an apartment is sold or rented

out or given possession of pursuant to sub-section (1) or (2), issue a
certificate to the owner of the apartment in a format as prescribed.
9. Ownership and Utilization of Apartments: (1) Upon making full payment
to a promoter by an apartment owner pursuant to this Act, the full ownership
or such an appartment will be under the owner.
(2) The owner of an appartment shall, subject to the terms and
conditions as may be set forth in the apartment agreement, have the right to
utilize the apartment as agreed.
10. Right of Apartment Owner to Sell It or Lease It Out: An apartment
owner shall, subject to the terms and conditions as set forth in section 11 and
the agreement, have the right to sell, rent out or transfer otherwise the
ownership or the right of possession of his appartment to any other person.
11. Agreement to be Complied With: (1) In cases where an apartment owner
sells, rents out or transfers otherwise the possession of his apartment under,
a person buying, renting or otherwise possessing the apartment shall comply
with the terms and conditions set forth in the agreement concluded with the
promoter and the matters as set forth in this Act or the rules and working
procedures made under this Act.
(2) Employees and workers working in a joint housing should comply
with the matters set forth in the rules and working procedures mde under this
Act and the agreement there of.
12. Circumstances Under Which Ownership of Apartments Prohibited to
be Transferred: (1) Notwithstanding anything contained elsewhere in this
Act, in cases where any amount is outstanding in respect of any apartment
sold to any individual or body, the buyer may only use the apartment subject
to the terms and conditions laid out in the agreement.
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(2) The ownership of an apartment possessed by such individual or

body may not be transferred in any manner until the payment of the
outstanding amount as referred to in sub-section (1).
13. Prohibition to Sell Without Consent: Until and unless the promoter or
committee expresses in writing that these is no amount, charge, fee and so
forth outstanding the entity authorized to pass the deed of registration by the
existing laws shall not register the deed of the sale of such apartment by the
new apartment owner.
14. Consent to be Given: In cases where an apartment owner wishing to sell his
or her apartment to any other person has asked for consent therefor pursuant
to section 13, the promoter or committee shall, if there is no amount, charge,
fee and so forth outstanding, give consent in writing for the sale of the
apartment.

Chapter-4
Provisions Relating to the Agreements
15. Agreements to be Concluded: (1) In cases where a promoter sells, rents out
or otherwise transfers the possessing right of an apartment, an agreement to
that reflect shall be concluded with the individual or corporate body
purchasing, renting or otherwise acquiring possessions right of such
apartment.
(2) The following matters shall be clearly mentioned in an agreement
concluded pursuant to sub-section (1):
(a) Names and addresses of the parties to the agreement,
(b) The location, ownership, area, Plot No. of the land and other
particulars related to the land and the joint housing,

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(c) Apartment No.; area of the apartment; the number of rooms in

the apartment, facilities and other necessary particulars relating
to the apartment,
(d) Particulars relating to the sale, rent or otherwise transfer the
possessory right,
(e) In cases of sale, the price and the process of making payment
thereof,
(f) In cases of renting out or transfering otherwise the possessons
right of the apartment, the duration there of and particulars
realting to the rent,
(g) The collective area and facilities to be enjoyed collectively in a
proportional way by the apartment owner and particulars
relating to restricted collected areas and facilities,
(h) Terms and conditions to be applied in utilizing the apartment
and activities allowed to be done or not allowed to be done,
(i) Any collective expenses to be borne and liabilities for the
maintenance, upkeep and care of collective areas and facilties,
(j) Matters relating to the rights, duties and liabilities of the
apartment owner and promoter,
(k) Matters relating to the precentage of the area occupied by the
apartment in the joint housing,
(l) Amount of insurance premium,
(m) Other pertaining matters.

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Chapter-5
Collective Interests and Liabilities
16. Collective Areas and Facilities: An apartment owner may, without
prejudice to the rights of other apartment owners, use the following
collective areas and facilities in a proportional manner:
(a) Land of a joint housing,
(b) The base, foundation, pole, sewerage, beam, support, wall,
outer wall, roof, hall, corridor, lobby, staircase, fire escape and
way in and way out,
(c) The basement, solar, courtyard, garden, parking lot and
godown,
(d) Generator post and guard post,
(e) Electricity, gas, parts arranging, making for cold and hot water,
and parts of the building used for heating and air conditioning,
(f) Items of collective use such as elevator, pump, tank, motor, fan,
garbage container.
17. Prohibition on Separation: Except as provided for in this Act or the
working procedures made under this Act, separation or division of collective
areas and facilities as well as restricted collective areas and facilities may
not be allowed.
18. Responsibility for Bearing Collective Expenses: An apartment owner shall
make payment to the promotor or the committee of the collective expenses
incurred in connection with the operation, maintenance, upkeep, cleaning up
of collective areas and facilities propertionately as stipulated in the
agreement.

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19. Prohibition on Refusal to Pay: An apartment owner shall not have the right
to refuse to make payment for the collective expenses icurred as stipulated in
the agreement.
20. Permission to Withhold : In cases where an apartment owner has not made
payment to the promoter or the committee any amount payable for the
collective expenses, the promoter or committee may, until the due amount is
paid, withhold the use of any of the collective areas and facilities as well as
restricted collective areas and facilities being used by such apartment owner
or suspend the transfer of such apartment to any person in whatsoever
manner.
21. Insurance of Joint Housing: It will be mandatory for the promoter or the
committee to insure a joint housing against the natural calamities. All
expenses to be incurred in connection with the insurance shall be borne by
the apartment owners propertionately as stipulated in the agreement.
22. Cases of Destruction or Damage of Joint Housing: (1) In the event of a
joint housing being destroyed completely in any manner, the right of all
apartment owners to the land area of the housing shall be established
propertionately.
(2) In cases where a joint housing has been damaged in part and could
be repaired or constructed, the promoter or the committee shall repair the
building so damaged within the prescribed period from the date of such
damage.

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Chapter-6
Management of Joint Housing
23. Protection, Care, Repair and Maintenance of Joint Housing: It shall be
the duty of the promoter to protect, care, repair and maintain the buildings
and collective areas as well as the facilities of a joint housing.
24. Housing Management Committee to Protect, Care, Repair and
Maintain: (1) Notwithstanding anything contained in section 23, in cases
where a promoter sells all his apartments owned by him or all apartment
owners agree in writing to run their joint housing on their own and make a
requisition therefor to the promoter or in cases where it has been impossible
to protect, care, repair, maintain and clean up a joint housing as a result of
the dissolution of the corporate body or the promoter has been insolvent, the
apartment owners shall, from among themselves form a housing
management committee to protect, care, repair, maintain and clean up joint
housing and collective areas and facilties and the committee itself will fix
the procedures relating to the meetings of such a committee.
(2) In cases where a committee has been formed pursuant to sub-
section (1), the committee shall perform all the functions to be performed by
a promoter in accordance with this Act or the rules made there under.
25. Right to Raise Charges or Fees: A promoter or committee may, for the
operation, protection, care, repair, maintenance and clean up of a joint
housing and collective areas facilities, raise charges and fees as fixed in the
agreement.

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Chapter-7
Miscellaneous
26. Right to Build Joint Housing for Private Use : (1) If any person wishes to
build a joint housing for his or her private use, he or she shall make a request
there of to the competent authority as set forth in section 4 and obtain
approval.
(2) Notwithstanding any thing contained elsewhere in this Act, the
provisions of other chapters other than those of Chapter -2 will not apply
with regard to the opeartion, management and other matters of a joint
housing built for private use pursuant to sub-section (1) and the operation of
such a joint housing will be as per the agreement concluded between the
builders of that building.
27. Prohibited Acts: (1) A promoter and committee shall not do the followings:
(a) To construct a joint housing building contrary to the
standard approved by, and the quality specified by, the
competent authority,
(b) To construct a building contrary to the sketch, structural
design or plan approved for the construction of the joint
housing building,
(c) To act in such manner as to be against the interests of
apartment owner.
(2) An apartment owner shall not do the following:
(a) To adversely affect the security of the area of the joint
housing and the safety and health of the other apartment
owners,
(b) To carry out any act that may cause decrease in the value
of the joint housing,
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(c) To carry out extra works or excavate in, or demolish, the

structure of his or her apartment,
(d) To sell the apartment by fragmenting or dividing it into
parts,
(e) To deprive the other apartment owners of the use of
collective areas and facilities and restricted areas and
facilities.
28. Punishment: (1) In cases where a person builds a joint housing building
without obtaining approval pursuant to section 5, the competent authority
may impose a fine in an amount not exceeding one hundred thousand rupees
on such individual or body and may also issue an order to demolish the
building so constructed.
(2) If a building built by a promoter is damaged as a result of not
following the approved sketch, structural design, plan and standard and
quality as approved and specified by the competent authority a fine will be
imposed on such a promoter in an amount ranging from one hundred
thousand to five hundred thousand rupees, and if it is proved that the loss
was caused by the collapse of the buildings due to to a techincal fault, the
victim shall have the right to recover a resonable amount of damage from
the promoter.
(3) In cases where a person intentionally voilets or commits or omits
any order or guidelines issued in accordance with this Act or the rules made
there under, the competent authority may, considering the gravity of the
offence, imposed a fine on such person in an amount not exceeding fifty
thousand rupees, and if he or she repeatedly commits such an offence, an
extra fine of five thousand rupees will be imposed on the offender in each
case.
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29. Granting of Exemption: (1) The Government of Nepal may, by notification

published in the Nepal Gazette, exempt, in whole or in part, a person from
paying registration fee, payable as per the existing laws for the sale of an
apartment.
(2) The Government of Nepal may, by notification published in the
Nepal Gazette, exempt from paying taxes, fees and charges, payable as per
the existing laws, for the opeartion of a joint housing, in whole or in part.
30. Defence-related Provisions: In cases where a case has to be filed or a legal
proceeding has to be initiated against any person on behalf of a joint
housing, the promoter or the committee shall take actions for defending the
case or the legal proceeding.
31. Statutory Limitations: Cases against any offence committed under this Act
shall be filed within a period of three months from the date of the knowledge
of the commission of the offence, and within a period of one year from the
date of the commission of the offence.
32. Appeal: A person not satisfied with any decision made by the competent

authority in accordance with this Act may file an appeal in the District
Court concerned within a period of thirty five days from the date of the
decision.
33. Power to Issue Guidelines: The competent authority may, if he or she
deems it necessary, issue directives to the promoter or the committee for the
proper operation of a joint housing, and it shall be the duty of the promoter
or the committee to comply with such directives.


Amended by Some Laws of Nepal Amending Act, 2072 (2016) .

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34. Existing Laws to Prevail: Matters set forth in this Act will be dealt with in
accordance with this Act and other matters will be dealt with in accordance
with the existing laws.
35. Powers to Frame Rules: The Government of Nepal may, for carrying out
the objectives of this Act, make rules.
36. Powers to Make Working Procedures and Give Effect Thereto: A
promoter or committee may, for the opeartion and management of a joint
housing, and without prejudice to this Act or the Rules made thereunder,
make working procedures and give effect to them on the following matters:
(a) Matters relating to the protection, repair and maintenance
of the joint housing,
(b) Matters that are required to be followed by apartment
owners in the course of the use of a joint housing,
(c) Matters relating to the terms, conditions and facilities of
the employees working in a joint housing,
(d) Other matters necessary for the operation of a joint
housing.

Note: Words that were replaced by Some Laws of Nepal Amending Act, 2063 (2006) :–
"Government of Nepal" instead of "His Majesty Government"

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