CHAPTER 4

LEGAL RIGHTS OF SPACE

 Ownership & Tenure
Ownership & legal rights of property
Types of Ownership in Nepal
Relationship between Ownership and Tenure

Leased Space & Property

Leasing property

Concepts in Building Types

Public Housing
Apartment

Squatter Settlements
Physical Characteristics
Social Characteristics
Legal Characteristics

CHAPTER 4 IN SYLLABUS 00
 Ownership is the state of
being an owner or legal
right of possession. It
does not only deal with
physical properties rather it
covers the psychological
too.

Ownership can basically be

of two types :
1. Individual-ownership
(owned by a single
person) eg. individual
house , car , pen etc.
2. Group or Collective
Ownership (owned by a
group ) e.g : courtyard
in Traditional Newari
Settlement etc.

DEFINITIONS OWNERSHIP 1.1

 In Nepal, there are three
types of ownership
prevalent :

1. Private land with

absolute ownership
(can be held by the
owner, leased or
mortgaged)
2. Public and
Government : (belongs
to the government but
is used by public or
community)
3. Joint land Ownership
: ( Property is jointly
own with official
registration)

OWNERSHIP IN NEPALESE CONTEXT 1.2

 Business ownership types
in Nepal :

1. Sole Proprietorship
2. Partnership
3. Private Limited
4. Joint Stock Company
5. Public Enterprises.
6. Cooperatives
7. Multinational Company

OWNERSHIP IN NEPALESE CONTEXT 1.3

 In Communist China, two
types of land ownership :
state ownership and
collective ownership. Mostly
urban lands are owned by
the state while rural lands is
owned by collectives.

Some other forms of land

ownership includes
- Communal land
ownership. ( owned by
community or
indigenous groups)
- Leasehold (on lease)
- Statrum or Unit Title (
common for buildings
with multiple owners like
in apartment)

OWNERSHIP IN OUTSIDE NEPAL 1.4

Types of Capital Definition Legal Documents

Human Capital Number of labour force and time available to Janma Darta, Nata Pramanpatra ,
engage in income-generating activities along Insurance Certificates
with education ,skill and health status.

Social Capital Social resources ( networks, membership of Membership of clubs, political party,
groups, relationships of trust and access to samudayik ban Upobhokta samiti.
wider institutions of society)

Physical Capital Availability of basic infrastructure ( transport, Bills, certificates given by the water
shelter, water, energy and communications) supply, electricity bills.

Financial Capital Financial Resources available to people Pass books, debit/credit cards,
(including savings, credit, remittance, and shareholder certificates.
pensions) that provides livelihood options.

Natural Capital Set of natural resource including land, water and Landowner certificate or Lal Purja
other environment resources, especially Membership, Jal Upabhokta Samiti ,
common pool resources. Samudayik Upabhokta Samiti.

TYPES OF CAPITAL & LEGAL DOCUMENT 1.5

Etymology, Latin word
“Tenere” meaning “to hold a
tenant” in Latin.

Tenure defines the limited

time or period of holding,
the conditions under which
land or buildings are held or
occupied.

Land Tenure plays crucial

role in the individual’s sense
of participation in a society
as well as in the investment
of labour and capital on any
piece of land.

TENURE 1.6
Type Characteristics Status

Raikar Lands on which state levis taxes and is under

official records.
Birta Granted lands to individuals to enable them to make Abolished in 1959
a living under conditions prescribed by the grant. and converted to
Raikar
Guthi Land assigned for charitable , religious ,
philanthropic institutions .
Jagir & While Jagir is permanent and inheritable Abolished in 1955
Rakam assignment of land while Rakam is temporary land and converted into
assigned for manual labourers. Raikar

Kipat Essentially a form of communal tenure and certain Abolished in 1965

ethnic groups are permitted to own land. Example :
Kipat of Limbus

FORMS OF LAND TENURE ( BEFORE 1964) 1.7

Improved land Tenure System in Nepal (After 1964)

Type Characteristics

Private Land with absolute Type of land that can be held by the owner himself or
ownership may lease or mortgaged.

Public and Government Public Land belongs to the government but can be used
Lands by public/community whereas Government land can only
be used by government purpose.

Guthi Land or Trust Land Numerous types of Guthi land specifically Rajguthi
(state-owned), Niji Guthi (individual trust) , Guthi Tainathi,
Guthi Adhinasth

IMPROVED LAND TENURE IN NEPAL(AFTER 1964) 1.8

As per Land Act, 2021 (1964)

Land-owner > person who

has the land registered in his
or her name , subject to
payment of land revenue to
government of Nepal under
prevailing land thereof the
title of the land.

Tenant > means a person

(normally agriculture worker)
who holds the land that
belongs to another
landowner to till the same on
any terms and cultivates the
land by him or herself.

TENURE 1.9
 Concept of Tenant and
Landlord is out of date and
Tenure has been defined and
modified in relation of the
parties to land which is held
under lease.

Lease /Leasing out is the

process of transferring of
legal rights to the interested
parties for certain tenure for
its rational use. Such lands
are called land on lease.

Leasehold vs Freehold ?

LEASED SPACE AND PROPERTY 2.1

FREEHOLD & LEASEHOLD 2.1
 Individuals, Institutions ,
trust etc hold a property or
land > such lands if not
utilised in their full capacity
are leased out. Owner
benefits from the payment
made by the tenants
according to the mutual
understanding.

Examples :
-Sharemarket Complex
(Land-owned by Guthi Sansthan and
Tenant is sharemarket)

United World Trade Center ( land

owned by Janaprashashan Campus
and Tenant is United Finance
Company)

LEASED SPACE AND PROPERTY 2.2

BOT or BOOT
Build Operate Transfer/ Build Operate Own Transfer

- More advanced and economically viable projects are appearing in BOT concept
- Agreed infrastructure would be developed by the tenant (BUILT)
- Tenant will run its business in the built infrastructure (OPERATE) and benefit to
agreed level.
- After the completion of tenure, contract could be reviewed and renewed and
developed infrastructure will be handed over to the original property holder
including the natural resource under tenure ( TRANSFER)

LEASED SPACE AND PROPERTY 2.2

 Public housing

> often referred as social

housing units made available
to low income individuals
and families at no cost or
nominal rental rates.

> often leased for specific

period or rented or given
ownership.

> KMC and Karmachari

Sanchaya Kosh initiated
public housing in the form of
low cost housing in
Kathmandu and Pokhara.
Eg: Ichangu Narayan
Housing

PUBLIC HOUSING /APARTMENT 3.1

Apartment

According to the law, an apartment is a unit of a building

that can be used independently and consists of one or
more rooms.

Ownership of Joint Housing Act, 2054 B.S ( 1997)

introduced legal provisions to facilitate ownership and
tenure issues in joint housing and apartments along with
collective interests and liabilities like

- prohibition of separation within unit

- Responsibility for bearing collective expenses
- Mandatory Insurance of Joint Housing
- Proportionate right of all apartment owners to the land
area in event of complete destruction or damage

PUBLIC HOUSING /APARTMENT 3.1

 Squatter Settlement

- Residential area
developed without legal
permission or the right
to the land.
- often located on the
outskirts of large cities
and are occupied by
the poor.
- often built in open
spaces, steep slopes,
river buffers.
- often characterized by
inadequate
infrastructure and
services due to its legal
status.

SQUATTER SETTLEMENTS 4.1

Squatter Settlement
(also known as informal settlements, low-income settlements, semi-permanent
settlements, shanty towns, spontaneous settlements, unauthorized settlements etc)

Characteristics

Physical A squatter settlement due to inherent “non-legal” status, has

services and infrastructure below the adequate or minimum levels.

Social Most squatter settlement households belong to lower income

group either working as wage labour or in various informal sector.

Legal The key characteristics that delineates a squatter settlement is its

lack of ownership of the land parcel on which they have built their
house.

SQUATTER SETTLEMENTS 4.2

 Ownership & Legal Rights
a. (2075 Bhadra)_Describe ownership and legal rights of properly like building and land in Nepal ?
b. (2071 Bhadra)_Define ownership. Explain what you know on leasing of property owned by individuals, institution, trust etc providing suitable examples. What are physical ,
social and legal characteristics of squatter settlement.
c. (2076 Baishakh)_ Mention different types of ownership practices in Nepal . Explain the physical , social and legal characteristics of squatter settlement.
d. (2063 Ashad)_Write Short Notes on Ownership

Ownership & Tenure

e. (2064 Poush)_What is ownership ? What do you understand by Tenure ?
f. (2070 Bhadra)_Write short notes on Ownership and Tenure ?
g. (2070 Magh)_Write short notes on Ownership and Tenure ?
h. (2069 Poush)_ What is ownership ? What are the types of ownership in practice elsewhere and in Nepal ?

Tenure

i. (2076 Bhadra)_What is tenure ? What are various types of ownership practice in Nepal ? Mention the characteristics of squatter settlements.
j. (2071 Bhadra)_Write Short Notes -Tenure ?
k. (2066 Magh)_ Define Tenure. How do you explain ownership ? Explain the relationship between ownership and tenure.
l. (2072 Ashwin)_What is Tenure ? Describe on leasing of property owned by individuals, institutions, trusts etc that are currently in practice.

Leased Space and Property.

m. (2069 Bhadra)_ Write Short Notes -Leased Space and Property
n. (2075 Bhadra )_ Write short notes on Leased Space and Property

Public Housing & Ownership in Apartment or Community Building.

o. (2069 Poush)_ Write short notes on Public Housing ?
p. (2072 Ashwin)_ Write short notes on Public Housing ?
q. (2069 Bhadra)_ What are legal Rights and Ownership of Public Housing and Apartment in Nepal ?
r. (2070 Bhadra)_What kind of ownership does an apartment or community building reflect ? What is the legal right of possession of property ownership in this case ? Explain in
detail.
s. (2068 Magh)_Discuss the concept of legal rights of space. Explain how the concept is applied in owner built house , apartment housing and squatter settlement.

Squatter Settlement
t. (2070 Bhadra)_Write short notes on squatter settlements.
u. (2075 Bhadra )_ Write short notes on squatter settlements.

v. (2072 Ashwin)_Small community in a neighborhood of Kilagal, downtown Kathmandu devastated by Gorkha Earthquake wants to rebuild collectively. Discuss the ownership
and appropriate building type issue the project could generate and propose a solution (ownership and building type)