ownership of joint housing act 20541997 english

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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



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).



(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.



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.



(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



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:



(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,



(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.



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.



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.



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:



(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



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



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.

ownership of joint housing act 20541997 english

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