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The same plot of land can carry three different "values" in Nepal — the bank's, the government's, and the market's — and confusing them is how people end up with a smaller loan or a surprise tax bill.
Property valuation in Nepal is the formal assessment of what land or a building is worth, done by qualified valuators for bank loans and set by government rates for registration. Each serves a different purpose, and knowing which applies saves money and time.
This guide explains property valuation in Nepal in 2026 — how bank and government valuation differ, who is qualified to value property, the documents required, and how fair market value is calculated.
Property valuation in Nepal is the assessment of a property's worth, used mainly for bank loans and for registration at the Land Revenue Office (Malpot). For loans, only engineers registered with the Nepal Engineering Council and the Nepal Valuers' Association can issue a valuation, and banks typically calculate fair market value as a weighted mix of market and government rates. For transfers, the government minimum valuation set by the Malpot applies. The framework sits under the Land Revenue Act 2034 and the National Civil Code 2074.
Notary Kathmandu provides document notarization, certified true copies, and multilingual translation for individuals and businesses across Nepal.
We do not carry out property valuation — that is the work of registered valuators — but we notarise and certify the property documents that accompany a transaction through our notary services in Kathmandu. Get your documents notarized in Kathmandu →
What Is Property Valuation in Nepal?
Property valuation is the process of estimating the monetary worth of land or a building. It is not a single fixed number — the value depends on who is asking and why. A bank assessing loan collateral, the government registering a transfer, and a buyer negotiating a price can each arrive at a different figure for the same property.
The framework sits under the Land Revenue Act 2034 and the National Civil Code 2074, and all immovable property transfers are registered at the Land Revenue Office (Malpot) based on a valuation. Understanding the type of valuation you need is the first step.
Key takeaway: Property valuation estimates a property's worth, but the figure depends on purpose — bank loan, government registration, or market sale each use a different basis.
Bank Valuation vs Government Valuation
The two valuations most people encounter serve opposite purposes — one to lend against the property, one to tax and register its transfer.
| Aspect | Bank Valuation | Government Valuation |
|---|---|---|
| Purpose | Loan collateral assessment | Registration and tax at the Malpot |
| Who sets it | A registered valuator appointed by the bank | Land Revenue Office minimum rates |
| Basis | Weighted market and government value | Government minimum rate for the area |
| Updated | Per assessment | Annually, at the start of the fiscal year |
For bank loans, valuators commonly calculate fair market value as a weighted mix — for example, around 70% market value and 30% government value in urban areas, and roughly 60/40 in rural areas. Government minimum rates, by contrast, are reviewed and updated annually around Ashar (June–July).
Key takeaway: Bank valuation blends market and government value to set loan collateral; government valuation uses the Malpot's annual minimum rate for registration and tax.
Who Can Value Property in Nepal?
For banking and legal purposes, valuation is not a job anyone can do. Only engineers registered with the Nepal Engineering Council who also hold membership of the Nepal Valuers' Association (NVA) can issue a valuation certificate that financial institutions and courts will accept.
This is an important distinction: an informal estimate from a broker or neighbour has no standing for a loan or a legal matter. The valuation that counts comes from a qualified, registered valuator who inspects the property and issues a formal certificate.
Key takeaway: Only Nepal Engineering Council-registered engineers who are members of the Nepal Valuers' Association can issue a valuation accepted by banks and courts.
How a Property Valuation Is Done
A formal valuation follows a clear sequence:
- The valuator visits and inspects the property in person.
- The land is measured, often using GPS or measuring tools, and checked against the documents.
- The valuator verifies that the plot details match the title deed and survey map.
- Market data, government rates, construction quality, and location are weighed to reach a figure.
- A formal valuation certificate is issued for the bank or the relevant purpose.
Key takeaway: A valuation involves a physical inspection, measurement, document verification, and a weighted assessment, ending in a formal certificate.
Documents Required for Property Valuation
The valuator needs the property's paperwork to verify and assess it. Typical documents include:
- Land ownership certificate (Lal Purja)
- Citizenship certificate of the owner
- Survey map (napi naksa) of the plot
- Land-tax clearance receipts
- Building completion certificate, if there is a structure
- Ward office boundary certificate and recent transfer deeds
Where any of these must be submitted as copies — to a bank file or another office — a certified true copy keeps your originals safe while satisfying the requirement.
Key takeaway: The Lal Purja, citizenship, survey map, and tax receipts are the core documents — certified copies are useful when a bank or office needs them on file.
Where Notarisation Fits — and Doesn't
To be clear: Notary Kathmandu does not carry out property valuation. That is the specialised work of registered valuators and engineers, and a valuation certificate must come from them.
Where a notary genuinely helps is the surrounding documents. Property transactions involve title deeds, citizenship, and supporting papers that often need notarisation or certified copies, and where an owner is abroad, a power of attorney lets an agent act in a sale or transfer. If you are also dividing family property, see our guide to property partition in Nepal.
Key takeaway: Valuation is the valuator's job, not the notary's — but the title deeds, copies, and powers of attorney around a property transaction are notarial work.
Conclusion: Know Which Value You Need
Property valuation in Nepal only makes sense once you separate the three values — bank, government, and market. For a loan, you need a registered valuator's certificate; for a transfer, the government minimum rate at the Malpot applies; for a sale, the market sets the price. Matching the right valuation to your purpose is what avoids a shortfall or a surprise.
We do not value property. What we do is prepare and certify the documents that accompany a transaction — notarised copies of the Lal Purja and citizenship, and a power of attorney where an owner cannot attend.
If your property matter needs documents notarised or certified, see our notarization services or talk to our team in Kathmandu. Get your documents notarized in Kathmandu →
Reviewed by: The Legal Team at Notary Kathmandu — Nepal Bar Council registered advocates
Last reviewed: April 2026
This article is for informational purposes only and does not constitute legal advice, advertisement, or solicitation. Notary Kathmandu and its team are not liable for any consequences arising from reliance on this information. For legal advice, please contact us directly.
Frequently Asked Questions
Property valuation in Nepal is the formal assessment of what land or a building is worth.
Only engineers registered with the Nepal Engineering Council and the Nepal Valuers' Association can issue a valuation banks and courts accept.
No. Bank valuation blends market and government value for loan collateral; government valuation uses the Land Revenue Office's minimum rate.
Banks rely on a registered valuator who calculates fair market value as a weighted mix of market and government value — commonly around 70% market and 30% government value in urban areas, and roughly 60/40 in rural areas. The exact weighting follows the bank's policy and the valuator's assessment.
The valuator typically needs the land ownership certificate (Lal Purja), the owner's citizenship, the survey map, land-tax clearance receipts, a building completion certificate where there is a structure, and the ward boundary certificate. These let the valuator verify the property against its records.
The government minimum valuation is set by the Land Revenue Office (Malpot) for each area and is reviewed and updated annually, usually around Ashar at the start of the fiscal year, based on transaction records, infrastructure, and area growth. It forms the base for registration and tax.
Because each value serves a different purpose. The bank value assesses loan collateral, the government value sets registration and tax, and the market value reflects what a buyer will pay. The same property can carry all three figures at once, which is why matching the right one to your need matters.
No. Property valuation is carried out by registered valuators and engineers, not notaries. A notary's role is limited to the surrounding documents — notarising and certifying title deeds, citizenship, and supporting papers, and preparing a power of attorney where needed.
Property valuation and transfer sit under the Land Revenue Act 2034 and the National Civil Code 2074. All immovable property transfers are registered at the Land Revenue Office based on a valuation, whether the government minimum rate or a professional assessment.
The valuator inspects the property in person, measures the land and checks it against the documents, verifies the plot details against the title deed and survey map, then weighs market data, government rates, construction, and location to reach a figure and issue a formal valuation certificate.
Banks and offices often want copies of the Lal Purja and citizenship on file rather than the originals. A certified true copy from a notary satisfies this while letting you keep the originals safe. The valuation itself, however, is issued by the registered valuator.
Yes. The valuation is done on the property itself, but an owner abroad who needs to sell or transfer can authorise an agent in Nepal through a power of attorney to act in the transaction. The valuator still inspects the property and issues the certificate as usual.
Government minimum land valuation is reviewed and updated annually by Land Revenue Offices, typically around Ashar (June–July) at the start of the new fiscal year. Rates can rise where infrastructure and transactions have grown, affecting registration costs and tax.
No. An informal estimate from a broker or neighbour has no standing for a loan or legal matter. Banks and courts require a valuation certificate from a Nepal Engineering Council-registered engineer who is a member of the Nepal Valuers' Association.
No. Notary Kathmandu does not carry out property valuation, which is the work of registered valuators. We help with the document layer — notarised and certified copies of property documents, and powers of attorney for owners who cannot attend a transaction.
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