Kathmandu: The Parliament has approved an amendment to the Property Act, enabling local authorities to issue licenses to real estate agents. Following additional revisions to the bill, which focused on property regularization, the National Assembly accepted the proposal after it was presented in the lower house. The amended act will come into effect once endorsed and published in the official gazette by the President.

According to Ganesh Prasad Bhatta, spokesperson for the Ministry of Land Management, Cooperative, and Poverty Alleviation, the amendment was sought to regulate the real estate sector based on international property market concepts and practices. Expressing concerns over the recent trend of black money being invested in real estate, the spokesperson emphasized the need to bring real estate business under formal channels. He added that with the requirement of licenses, all real estate agents would operate under regulatory oversight.

Furthermore, cooperative institutions, largely invested in real estate, welcomed the move, as it would address the issue of sinking investments due to lack of transparency.

They echoed the government’s stance that engaging in real estate brokerage without paying taxes could lead to significant revenue losses for the state. Transparent practices are expected to increase the likelihood of fair property transactions, thereby stabilizing property prices at market rates, noted officials.

Previously, only officials authorized by the federal or provincial governments could grant such licenses. However, the new provision in the bill allows authorities at three levels of government to distribute licenses. The term of these licenses will be five years. This provision replaces the previous system where each casino operator had to obtain a separate license, leading to the proliferation of numerous companies. Now, with a unified licensing system, the government aims to streamline the real estate sector and enhance its transparency.