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Ownership of Joint Housing Act, 2054 (1997) Date of
authentication and publication
2054.9.7 (22 Dec. 1997)
Amendment,
Republic Strengthening and Some Nepal 2066-10-7
Laws Amendment Act, 2066 (2010) (21 Jan. 2010)
Act number 15 of the year 2054 (1997)
An Act made to provide for ownership of joint housing
Preamble: Whereas, it is expedient to resolve the existing
housing problem and provide for systematic settlement by developing
joint housing and selling and distributing moderate housing units
in an easily accessible manner and to provide for the rights and
obligations of the owners of such housing units, in view of the
existence of a situation that the urban habitants can be deprived
of housing facility
due to increase in the price of land because of excessive
population pressure on the
urban areas of Nepal;
Now, therefore, be it enacted by the Parliament in the Twenty
Sixth year of
the reign of His Majesty King Birendra Bir Bikram Shah Dev.
The word "Kingdom" has been deleted
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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(1997).
(2) This Act shall come into force on such date as may be
appointed by the Government of Nepal by a Notification in the Nepal
Gazette.1
2. Definitions: Unless the subject or the context otherwise
requires, in this Act:
(a) "joint housing building" means a building which has two or
more than two floors, contains two or more than two housing units
and is built in any land, and this term also includes similar types
of two or more than two buildings which are built by the name of
blocks,
pockets or similar other designations in the same land;
(b) "apartment' means any unit of a joint housing building,
which contains one or more than one room, along with such common
areas
and facilities as may be enjoyed freely in such a building; (c)
"developer" means a body corporate which is registered under
the
prevailing law and has obtained permission under Section 5 to
build and operate a joint housing building;
(d) "apartment owner" means a person or body corporate that
purchases or leases or otherwise possesses an apartment, subject to
the terms set forth in the agreement as referred to in this
Act;
(e) "common areas and facilities" means the common areas and
facilities set forth in Section 16;
1 This Act came into force on 2060.1.2 (15 Apr. 2003), as the
date being appointed by a Notification
in the Nepal Gazette of 2060.1.2 (15 Apr. 2003).
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(f) "limited common areas and facilities" means such areas and
facilities so made or placed as to be enjoyed only by some
apartment owners;
(g) "agreement" means an agreement entered into between the
developer and receiver of apartment in relation to the purchase,
lease or otherwise possession of an apartment;
(h) "committee" means a Housing Management Committee formed
pursuant to Section 24 for the supervision, management and
operation of a joint housing building; (i) "competent authority"
means a body or authority designated by the
Government of Nepal by a Notification in the Nepal Gazette;
and
(j) "prescribed" or "as prescribed" means prescribed or as
prescribed in the Rules framed under this Act.
Chapter-2
Provisions relating to permission of joint housing building 3.
Prohibition on erecting joint housing building without
obtaining
permission: Except as otherwise provided in the other prevailing
laws, no person shall build, or cause to be built, a joint housing
building without obtaining permission from the competent
authority.
4. Application to be made for permission: A body corporate who
wishes to build and operate a joint housing building has to make an
application to the competent authority for the permission to build
and operate the joint housing building, and such an application
shall be in the prescribed format and accompanied by the proposed
drawing/design, structural design of the
joint housing building, area of the land and description of
ownership, process and distribution of apartments, description
relating to common
areas and facilities and operational plan of the joint housing
building.
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5. Permission to be given: If an application is made pursuant to
Section 4, the competent authority shall make necessary inquiry
into the matter and
give permission to the applicant to build and operate the joint
housing building if the procedures as prescribed seem to have been
fulfilled.
6. Power to demand additional details or documents: If, in the
course inquiring into the matter pursuant to Section 5, it is
necessary to demand any additional details or documents relating to
the joint housing building, the competent authority may demand such
details or documents from the applicant and it shall be the duty of
the concerned applicant to promptly
submit the details or documents so demanded.
7. Prohibition on approving design without permission:
Notwithstanding anything contained in the prevailing law, the
authority competent to approve designs in accordance with the
prevailing law shall
not approve a design to build a joint housing building without
permission of the competent authority in relation to the building
and operation of the joint housing building pursuant to this
Act.
Chapter-3
Sale, ownership and transfer of apartments
8. Sale of apartments and other provisions: (1) The developer
may sell an apartment upon receiving payment of whole amount of the
apartment or
on condition of receiving such payment on installments.
(2) The developer may give possession of an apartment to any
person or body on rent or otherwise.
(3) In selling or renting an apartment or giving its possession
in other manner pursuant to Sub-sections (1) or (2), an agreement
as referred to in Section 15 has to be concluded.
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(4) In selling or renting an apartment or giving its possession
in other manner pursuant to Sub-sections (1) or (2), the developer
shall also give a certificate in the prescribed format to the
apartment owner.
9. Ownership and use of apartment: (1) After full payment by the
apartment owner to the developer pursuant to this Act, the owner
shall have
full ownership over such an apartment.
(2) The apartment owner shall be entitled to fully use his or
her apartment, subject to the terms set forth in the agreement.
10. Sale and rent by the apartment owner of his or her
apartment: Subject to Section 11 and the terms set forth in the
agreement, the apartment owner may sell, dispose of, rent, or
otherwise transfer his or her title to, the apartment in his or her
ownership, or transfer possession
thereof, to another person.
11. Agreement to be observed: (1) If the apartment owner sells,
disposes of, rents, or otherwise transfers his or her title to, the
apartment in his or her
ownership, or transfers possession thereof, to another person,
the person
who so purchases an apartment or possesses it on rent or
otherwise shall
observe the agreement concluded with the developer in relation
to the apartment and the provisions contained in this Act or the
Rules framed under this Act and operational procedures.
(2) The employees and workers who serve in the joint housing
building shall observe the provisions contained in this Act or the
Rules
framed under this Act, operational procedures and agreement.
12. Circumstances where ownership of apartment cannot be
transferred: (1) Notwithstanding anything contained elsewhere in
this Act, if there is any amount required to be paid the person or
body in respect
of an apartment sold to such person is due and payable, such
person or
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body shall be entitled only to use such an apartment subject to
the terms set forth in the agreement.
(2) Unless and until the due and payable amount is paid pursuant
to Sub-section (1), the ownership of the apartment being possessed
by such a person or body may not be transferred to another person
in any manner.
13. Prohibition on sale and disposal without consent: In selling
his or her apartment by the apartment owner to another person, the
body
empowered to effect registration pursuant to the prevailing law
shall not register the deed of sale or disposal until and until
consent in writing is given by the developer or committee, stating
that any kinds of amounts,
fees, charges etc. required to be paid by such apartment owner
to the developer or committee are not due and payable.
14. Consent to be given: If any apartment owner is to sell his
or her apartment to another person and requests for consent
pursuant to Section
13, the developer or committee shall, if any kinds of amounts,
fees, charges etc. required to be paid by such apartment owner to
the developer or committee are not due and payable, give consent in
writing to sell and
dispose of the apartment.
Chapter-4
Provisions relating to agreement
15. Agreement to be concluded: (1) In selling or renting an
apartment or giving its possession in other manner, the developer
shall conclude an
agreement with the person or body corporate that so purchases an
apartment
or possesses it on rent or otherwise.
(2) The agreement to be concluded pursuant to Sub-section (1)
shall clearly state the following matters:
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(a) Names and addresses of parties to the agreement,
(b) Place where the land in which the joint housing building has
been built, ownership and area of the land, plot number of the land
and other details of the land and the joint housing building,
(c) Apartment number, area of the apartment, number of rooms in
the apartment, facilities available there and
other necessary details relating to the apartment,
(d) Details whether the apartment is to be sold or rented or
possession thereof is to be given in other manner,
(e) In the event of sale of the apartment, price thereof and
mode of payment,
(f) If the apartment is to be rented or possession thereof is to
be given in other manner, details relating to the period thereof
and rent,
(g) Details relating to such common areas and facilities as the
apartment owners are entitled to use them
collectively and proportionately, and limited common
areas and facilities,
(h) The terms to be observed in using the apartment and acts
allowed and forbidden to be done in the
apartment,
(i) Common/collective expenses and obligations to be made and
borne for the repair, maintenance and care of
the common areas and facilities,
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(j) Matters relating to the powers, duties and obligations of
the apartment owner and the developer,
(k) Matter of what percentage part of the joint housing building
is covered by the apartment,
(l) Amount to be paid in consideration for insurance,
(m) Other necessary matters.
Chapter-5
Common/collective interests and obligations
16. Common areas and facilities: Any apartment owner may use the
following common areas and facilities proportionately, without
prejudice to the rights of other apartment owner:
(a) Land of the joint housing building, (b) Foundation, Lattha,
beam, support, wall, roof, hall, corridor, lobby,
staircase, fire escape and entry and exit point of the joint
housing building,
(c) Basement, solar, yard, garden, parking area and
warehouse,
(d) Place for installation of a generator and security guard
room,
(e) Electricity, gas, water cooling and heating site, and such
part of the building as used for acts such as heating or air
conditioning,
(f) Means of collective use such as elevators, pumps, tanks,
motors, fans and junk containers.
17. Prohibition on partition: Except as mentioned in this Act or
the operational manual made under this Act, dividing or
partitioning the
common areas and facilities and limited common areas and
facilities is prohibited.
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18. Collective expenses to be borne: The apartment owner shall
pay collective expenses payable as mentioned in the agreement to
the developer
or committee in proportion to the share of facilities being used
by him or
her for the operation, repair, maintenance, sanitation and care
of the common areas and facilities used by him or her.
19. Prohibition on demur: The apartment owner shall not demur to
bear such collective expenses as required to be paid by him or her
as mentioned
in the agreement.
20. Power to impose restriction: If the apartment owner does not
pay such amount as required to be paid by him or her to the
developer or committee
for collective expenses, the developer or committee may restrict
any
services and facilities, out the common areas and facilities and
limited common areas and facilities being used by him or her or
unless and until
such amount is paid or restrict the transfer of such an
apartment to another
person in any manner until the due amount is paid.
21. Insurance of joint housing building: The developer or
committee shall procure insurance of the joint housing building
against divine act and accidents. The apartment owners shall bear
all expenses incurred in such
insurance, proportionately and as mentioned in the
agreement.
22. Destroy or damage of joint housing building: (1) If the
joint housing building is totally destroyed in any manner, all
apartment owners shall have proportionate right to the land where
the building is located.
(2) If the joint housing building is damaged partially and can
be repaired or built, the developer or committee shall repair such
damaged building within the prescribed period from the date of so
damaged.
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Chapter-6
Management of joint housing building 23. Protection, care,
repair and maintenance of joint housing
building: The developer shall be responsible for the protection
care, repair, maintenance and sanitation of the joint housing
building and common areas and facilities.
24. Protection, care, repair and maintenance by housing
management
committee: (1) Notwithstanding anything contained in Section 23,
if the developer sells or disposes of all apartment owned by him or
her or if all
apartment owners of any joint housing building express consent
in writing to operate the joint housing building on their own and
make a submission to the developer to that effect or if, the
developer body corporate, being liquidated, or the developer
individual, being insolvent, is not able to carry
out protection, care, repair, maintenance and sanitation of the
joint housing building and common areas and facilities, the
apartment owners shall form
a management committee from amongst themselves for the
protection, care,
repair, maintenance and sanitation of the joint housing building
and common areas and facilities, and the committee itself shall
determine the rules of procedures of its meetings.
(2) If a committee is formed pursuant to sub-section (1), the
committee shall do or take all such acts or actions as required to
be done or
taken by the developer pursuant to this Act or the rules framed
under this
Act.
25. Power to collect charges, fees: The developer or committee
may collect such charges and fees as mentioned in the agreement
from the apartment
owners for the operation, protection, care, repair, maintenance
and sanitation of the joint housing building and common areas and
facilities.
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Chapter-7
Miscellaneous
26. Joint housing building may be built for personal use: (1) If
a person wishes to build a joint housing building for personal
purpose, the person shall make an application setting out that
matter to the competent authority
pursuant to Section 4 and obtain permission to that effect.
(2) Notwithstanding anything contained elsewhere in this Act,
the matters contained in the Chapters, other than Chapter-2, of
this Act shall not apply to the operation and management and other
matters of the joint housing building built for personal purpose
pursuant to Sub-section (1), and the operation of such a joint
housing building shall be carried out in accordance with the
agreement concluded between the builders of that building.
27. Prohibited acts: (1) The developer or committee shall not do
any of the following acts:
(a) Building the joint housing building contrary to the criteria
approved by the competent authority and standards prescribed by
that authority,
(b) Building the joint housing building contrary to the design,
structural design and drawing/plan approved
for the building of such a building,
(c) Doing any act contrary to the interests of apartment
owners.
(2) The apartment owner shall not do any of the following
acts:
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(a) Causing adverse effect on the security of the joint housing
building and the security and health of the apartment owners,
(b) Doing any act that may result in the decrease of the value
of the joint housing building,
(c) Making additional construction, demolition or excavation in
his or her apartment,
(d) Partitioning or dividing and sell or dispose of his or
apartment,
(e) Preventing the other apartment owners from using the common
areas and facilities and limited common areas and facilities.
28. Punishment: (1) If a person builds a joint housing building
without obtaining permission pursuant to Section 5, the competent
authority may fine such a person or body with a sum of up to One
Hundred Thousand
Rupees and order him or her to demolish the building so
built.
(2) If a joint housing building gets damaged because of the fact
that the building has not been built by the developer in consonance
with the design, structural design, plan approved by the competent
authority and
criteria and standards approved and prescribed by that
authority, such a developer shall be liable to a fine of a sum
ranging from One Hundred
Thousand Rupees to Five Hundred Thousand Rupees, and if it is
proved that any one has suffered loss due to demolition of such a
joint housing building because of technical error, the victim may
also have recovery of reasonable compensation from the
developer.
(3) If any person knowingly violates any orders or directives
issued under this Act or the Rules framed hereunder or omits to do
any act
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required to be done by him or her or do any act prohibited, the
competent
authority may fine such a person with a sum of up to Fifty
Thousand Rupees in view of the gravity of offence, and if such a
person repeats such
offence, he or she shall also be liable to additional fine of
Five Thousand Rupees, for each instance.
29. Exemption may be made: (1) The Government of Nepal may, by a
Notification in the Nepal Gazette, fully or partly exempt the
registration
fees chargeable under the prevailing law for the sale and
disposal of an
apartment.
(2) The Government of Nepal may, by a Notification in the Nepal
Gazette, fully or partly exempt such tax, tariff and fee as may be
charged under the prevailing law in the course of operation of the
joint housing building.
30. Provisions relating to defense: If it is required to file
any kind of case or institute any legal action against any other
person on behalf of the joint housing building, the developer or
committee shall file such a case or institute action relating to
defense on such legal action.
31. Limitation: On any offence under this Act, a complaint has
to be made within Three months after the date of knowledge within
One year of the date of commission of that offence.
32. Appeal: A person who is not satisfied with a decision made
by the competent authority pursuant to this Act may make an appeal
to the
concerned Court of Appeal within Thirty Five days after the date
of such decision.
33. Power to give directive: The competent may, if it considers
necessary to give directive for the proper operation of the joint
housing building, give
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such directive to the developer or committee, and it shall be
the duty of the
concerned developer or committee to abide by such a
directive.
34. Prevailing law to govern: The matters contained herein shall
be governed by this Act, and the other matters shall be governed by
the
prevailing law.
35. Power to frame Rules: The Government of Nepal may frame
necessary Rules for the accomplishment of the objects of this
Act.
36. Power to make and enforce operational procedures
(Guidelines): The developer or committee may make and enforce
operational procedures
(Guidelines) on the following matters for the operation and
management of the joint housing building, in a manner not to be
contrary to this Act or the Rules framed under this Act:
(a) Protection, care, repair and maintenance of the joint
housing building,
(b) Matters to be abided by the apartment owners while using
apartments,
(c) Service, terms of service and facilities of employees
serving for the joint housing building, and
(d) Such other matters as required for the operation of the
joint housing building.