Comprehensive Overview of Property Types and Rights in Nepal

Property is derived from the Latin term “proprietary” which means one’s own or things owned or assets belonged. Property refers to the materialistic or physically appeared objects. Article 25 of the Constitution of Nepal has provided rights relating to the property where it states that every citizen shall, subject to law, have the right to acquire, own, sell, dispose of, acquire business profits from, and otherwise deal with property.

Types of Property in general

1. Movable property and immovable property

A movable property is a kind of property that can be moved from one place to another. In other words goods, chattels that can be moved from place to place.

Muluki Civil Code sec 254 has defined immovable property are as follows: -

1. Cash or goods that can be transacted as cash or foreign currency.
2. Gold, silver, jewelry, Ratna, gold or silver ornament or precious stone.
3. Other goods that can be moved from one place to another,
4. A bond, security, promissory note, bill of exchange, letter of credit or other negotiable instrument or a benefit derived therefrom,
5. Intellectual property
6. A right to security.
7. A trade goodwill or franchise

Immovable property is a kind of property that cannot be moved from one place to another place. Muluki Civil Code sec 253 has defined immovable property are as follows: -

1. A building or land or structure fixed thereto,
2. Any goods attached to a building or land permanently.
3. A mine, stone or mineral embedded in land,
4. Natural water, surface water and underground water,
5. A building or other structure so made permanently that it can float over a river, lake or pond,
6. A standing tree, plant or fruit tree or fruit or flower growing on such a tree, plant or fruit tree or crops in the land,
7. A movable property attached to an immovable property.

2. Tangible property and Intangible property

Tangible property is also known as corporeal property. These kinds of property are visible to people, which are considered as material things like land and chattels.

Intangible property is not visible to people. So, it is called intangible or incorporeal property. It is also known as conventional or intellectual property

Muluki Civil Code 2074 has further categorized property into various types: -

1. Private property

Properties owned by any person is private property. Muluki civil code 2074, sec 256 mentions about private property.

1. Property earned by way of his or her knowledge, skills or effort.
2. Property acquired by way of donation, bequeath or succession.
3. Property acquired by way of a lottery or gift.
4. Property acquired by way of remuneration, gratuity, pension, medical expense, provident fund, insurance or other social security.
5. Property acquire by way of intellectual property or royalty.
6. Property acquired in any manner whatsoever while living apart by separating bread and board in accordance with law or while managing one’s accommodation at one’s cost despite not so living apart,
7. Property earned or acquired by a woman prior to marriage or acquired from her parental side at the time of marriage or accrued therefrom,
8. Property so granted to a woman by the husband or with consent of all coparceners of the husband side that she will have exclusive right in it or movable or immovable property received from the relatives or friends of the husband side and property accrued therefrom,
9. Property which, according to law, is considered to be the exclusive private property of a person.

2. Property in common

Any of the following property acquired in the following way is considered as property in common. Muluki civil code 2074, sec 256 mentions about private property.

1. Property inherited from ancestors,
2. Property owned by the coparceners except the private property,
3. Property earned by the coparceners from the farming, industry, trade or business in common or property acquired therefrom.

Any property earned by the parents for partition between the parents and their children shall also be deemed to be property in common.

3. Joint property

Any property owned by two or more persons except the coparceners living in a joint family. Muluki civil code 2074, sec 258 mentions about private property. The rights or shares of a joint holder in the joint property shall be as outlined in a deed setting out such rights and shares, and filing such a deed, holders of that property shall have equal rights and shares. The use and management of, transfer of title to, and other provisions relating to the joint property shall be governed as per the law.

4. Community property

Community property is property owned by and used for the welfare of a certain community. It is different from public and government property.

5. Government property

Any property owned by the government and used for governmental purposes is known as government property. Government property consists of those types of assets that are possessed, managed, and utilized by the state or government for public purposes. In Nepal, government property encompasses a wide range of physical and intangible assets serving the interests of the nation and its citizens.

6. Guthi property

Guthi Property is a traditional form of landholding and socio-religious institution that has deep historical, cultural, and legal significance in Nepal. While it is identified with the Newar community of the country, it nevertheless exists across the diverse ethnic and religious groups. It is used as a system for managing lands and resources for religious, social, and cultural purposes.

7. Public Property

Public Property is the property and assets owned by the general public, where the government or local authorities manage them for the benefit of the public. In Nepal, public property is an important part of the nation's resources, serving the needs of the people and contributing to societal welfare.

According to the Muluki Civil Code, property in Nepal is defined and divided into various kinds so as to provide clarity to the conception of ownership and rights. Property includes movable and immovable property, tangible and intangible property, which further divides into private, common, joint, community, government, Guthi, and public property. Movable property is that which can be relocated; whereas immovable property, such as land and buildings, does not move. Physical property is the tangible form of assets, whereas intangible property represents the intellectual property and rights. Property can be held in private ownership; on the contrary, common property is usually inherited or collectively owned. Joint property can be jointly held by two or more persons. Government property is held for the public good. Guthi property reflects the socio-cultural practice of the people, especially the Newars. Understanding these differences is of great importance for the assurance of legal protection and proper management of property in Nepal in accord with the constitutional right to acquire, own, and dispose of property.