A rental agreement in Nepal is a legally binding document signed by the house owner and the tenant. This document includes crucial details about the tenant, the rental price, and all other necessary documents to finalize the agreement. The house rent law in Nepal is governed by Chapter 9, from Section 383 to Section 405 of the National Civil Code, 2017.
What is Considered Rented?
In Nepal, the term “house” can refer to an entire house, a room within the house, the land on which the house sits, or a specific story of the house. A house is considered rented when the owner transfers the right to use it or its land to someone else for a certain period.
Period of House Rent
The rental agreement for a house in Nepal cannot exceed five years if it is for residential purposes. However, for commercial purposes, the rental period is specified in the agreement.
Essential Elements of a Rental Agreement
In Nepal, if the monthly rent exceeds NPR 20,000, a written agreement is mandatory. The rental agreement must include the following details:
- Full names and addresses of both the owner and the tenant, along with their citizenship numbers and passport or identification certificates (for foreigners).
- The place and plot number of the land where the house is located.
- The purpose of the rent.
- The start date of the rent.
- The validity period of the rent.
- The monthly rent amount.
- The time and mode of rent payment.
- Responsibility for paying tariffs for electricity, water, and telephone used in the house.
- Information regarding house rent tax payment.
- Details about house insurance, if applicable.
- Terms for leaving the rented house and evicting the tenant.
- Conditions regarding subletting the house.
- Any other necessary matters.
Two witnesses from each side must sign the agreement and a copy of it. The house owner is also required to disclose any faults or weaknesses associated with the house.
Responsibilities of the House Owner and Tenant
Both parties have specific duties outlined by law.
Obligations of the House Owner
- Allow the tenant to use the house as per the agreement.
- Ensure the provision of water, electricity, sewerage, and sanitation, unless otherwise stated in the agreement.
- Protect the tenant from insecurity, harassment, or unrest from other dwellers.
- Abide by all other matters outlined in the agreement.
Obligations of the Tenant
- Pay the rent within the specified period.
- Maintain cleanliness and take care of the rented house as if it were their own.
- Avoid causing unrest, harassment, or insecurity to other dwellers or neighbors.
- Comply with all other matters outlined in the agreement.
Repair and Maintenance
The tenant is generally responsible for repairing and maintaining the rented property unless the rental agreement specifies that the house owner should do so.
Sub-Renting Provisions
The tenant can sublease the house or some parts of it to other people if the rental agreement gives permission. The tenant must notify the house owner 15 days before subleasing, giving the subtenant’s required details. The house owner doesn’t get the payment from it directly. The sub-tenant makes the payment of rent to the tenant. The sub-tenant must follow the original tenant’s agreement, and the tenant has the right to evict the sub-tenant if they break down such terms and conditions.
Leaving the Rented House
A tenant can leave the rented house before the rental period expires under the following conditions:
- If the house owner fails to fulfill their obligations.
- If the tenant no longer needs the house for the rented purpose.
- If the house owner violates the agreement or the rental law.
- The tenant must give the house owner a written notice at least 35 days before leaving.
Eviction of the Tenant
A house owner can evict a tenant under the following circumstances:
- If the tenant fails to fulfill their obligations.
- If the tenant engages in illegal activities in the rented house.
- If the house owner needs the house for personal use.
- If the house requires repairs that necessitate removing inhabitants.
- If the house is deemed unfit for human habitation from a technical or health perspective.
- If the rental period expires.
- If the tenant violates the agreement or rental law.
- The house owner must give the tenant a written notice 35 days in advance.
- Power to Vacate the House
A rental agreement is considered terminated under these conditions:
- If the tenant leaves the house.
- If the house owner evicts the tenant.
- If both parties mutually agree to cancel the agreement.
- If the rental period expires.
In cases of rental agreement violations, the house owner can vacate the house if:
- The tenant disappears without paying rent for three months or more.
- The tenant, their successor, or agent cannot be found.
- The tenant does not respond within the designated period after receiving an official notice.
Statute of Limitations
The statute of limitations for taking legal action or filing lawsuits against individuals is six months from the date of the incident.
Conclusion – House Rent Law in Nepal
The rental laws in Nepal aim to balance the rights and responsibilities of both house owners and tenants. By understanding these laws, both parties can ensure a fair and legally compliant rental relationship. The National Civil Code, 2017, provides a detailed framework to govern rental agreements, ensuring that disputes are minimized and resolved efficiently.
Also Read: Contract Law in Nepal
