Introduction
Know your rights before signing. An overview of the National Civil Code 2074 (Muluki Devani Samhita) regarding house tenancy, notice periods, and security deposits in Nepal.
Know Your Rights as a Tenant in Nepal
Under the Muluki Devani Samhita (National Civil Code) 2074, house tenancy in Nepal is legally recognized and regulated to protect both property owners and renters from arbitrary disputes.
Key Protections Provided by the Civil Code:
- Written Tenancy Agreement: For rents exceeding Rs 20,000 per month, written contracts are mandatory, though having a signed agreement for any rental amount is best practice.
- Advance Deposit Rules: Security deposits must be returned promptly at the end of the tenancy after deducting verified pending utility dues or damages beyond ordinary wear and tear.
- Notice Period: Landlords cannot evict a tenant without providing at least 35 days' written notice, unless there is a severe breach of contract or criminal misconduct.
- Rent Increments: Rents cannot be increased arbitrarily every few months. Typical municipal guidelines permit modest increments only after 2 years of continuous tenancy.