Inheriting property can be a blessing, but selling an inherited property in Nepal involves a set of legal steps that must be followed to ensure a smooth and legitimate transaction. In Nepal, the process is governed by Nepali inheritance laws, property rights, and land revenue regulations. These steps are essential to avoid potential disputes, ensure the property title is clear, and comply with all legal requirements.
In this blog, we’ll walk you through the legal steps to sell an inherited property in Nepal.
1. 👨👩👧👦 Verify Inheritance Rights
The first step in selling inherited property is to verify your right to inherit the property. In Nepal, inheritance is governed by the Hindu Code Act, the Muluki Ain (Civil Code), and the Land Revenue Act.
The process starts by confirming that you are the rightful heir or successor to the property. The legal heirs could be children, spouse, or parents of the deceased. In some cases, if the deceased did not leave a will, the property will be divided among the legal heirs as per the law.
Documents needed to verify inheritance:
- Death Certificate of the deceased.
- Family Record or Genealogy (परिवार सम्बन्ध प्रमाणपत्र) issued by the local ward office, which confirms your relationship to the deceased.
- Citizenship certificates of all legal heirs to prove their identity.
2. 📝 Get a Succession Certificate (वसीयत प्रमाणपत्र)
In cases where there is no will (वसीयत) left by the deceased, the legal heirs must apply for a Succession Certificate from the district court to confirm their rights to the property. The certificate is an official document that acknowledges the legal heirs and their respective shares of the property.
If there is a will, this certificate is not necessary, as the will itself will be the legal document proving the inheritance.
Steps for obtaining a Succession Certificate:
- File a petition in the District Court for a succession certificate.
- Present necessary documents, such as the death certificate, family record, and citizenship certificates.
- The court will publish a notice for the public to object, and if no objections arise, the court will issue the succession certificate.
3. 🔄 Transfer of Ownership (संपत्ति हस्तान्तरण)
Once the succession certificate or proof of inheritance is obtained, the next step is the transfer of ownership of the inherited property. The property’s title needs to be updated to reflect the new owners.
You must visit the Malpot (Land Revenue Office) to initiate the transfer of ownership. This involves submitting the relevant documents, paying the applicable taxes, and getting the updated Property Ownership Certificate (लालपुर्जा) in the name of the new owner(s).
Documents required for ownership transfer:
- Succession certificate or a copy of the will.
- Death Certificate of the deceased.
- Citizenship certificates of the heirs.
- Property Ownership Certificate (लालपुर्जा) of the inherited property.
- Land Revenue Tax Payment Receipt proving that all dues on the property have been cleared.
- Application form for transfer of ownership (available at Malpot).
4. 💵 Settle Outstanding Property Taxes
Before selling the property, it is essential to ensure that all property taxes and dues are settled. Any outstanding tax, including Malpot tax and municipal taxes, must be cleared before the property can be sold. The tax payment receipt is one of the mandatory documents required for the sale process.
Steps to settle taxes:
- Visit the Malpot office to check if there are any unpaid taxes on the inherited property.
- Pay the Land Revenue Tax (मालपोत कर) for the year and any local municipal taxes that may apply.
- Obtain receipts for all tax payments and ensure the property is clear of any legal financial obligations.
5. 📝 Draft a Sale Agreement
Once you have settled the tax dues and updated the ownership documents, you can proceed with selling the inherited property. A formal sale agreement needs to be drafted between you (the seller) and the buyer. This agreement outlines the terms and conditions of the sale, including the sale price, payment terms, property details, and the date of transfer.
Key elements of a sale agreement:
- Buyer and seller details (name, citizenship number, address).
- Property description (area, location, plot number, and details from the Property Ownership Certificate).
- Agreed sale price and payment schedule.
- Date of transfer of ownership.
- Signatures of both parties and witnesses.
6. 🏢 Registration of the Sale Agreement
After the sale agreement is signed, it must be registered at the Land Revenue Office (Malpot) to make the transaction official. The sale agreement is registered to validate the transaction and ensure the new owner is recognized as the legal possessor of the property.
The buyer will also need to submit various documents, including:
- The sale agreement (duly signed by both parties).
- Copy of Citizenship certificates of both the buyer and seller.
- Property Ownership Certificate (लालपुर्जा) of the property.
- Tax clearance receipt.
- Witnesses’ identity proofs.
Once the sale agreement is registered, the property’s title is transferred, and the buyer will receive the updated Property Ownership Certificate in their name.
7. 🏦 Transfer the Sale Proceeds
After completing all legal formalities and the sale process, the proceeds of the sale must be transferred. It’s recommended to transfer the funds through a bank transaction to ensure that there’s a record of the transaction for both the buyer and seller.
💡 Conclusion
Selling inherited property in Nepal is a process that involves several legal steps to ensure the property is transferred smoothly and legally. From verifying inheritance rights to obtaining a succession certificate and updating ownership, it is essential to follow the legal procedure to avoid future disputes.
If you’re unsure about any aspect of the process, it’s always advisable to consult with a real estate lawyer or an expert in property transactions to guide you through the legal steps.
This guide should provide you with a clear understanding of the legal steps required to sell inherited property in Nepal. If you need further assistance or help navigating the legal process, Expert Real Estate Nepal can provide expert guidance and support.
