Risk in housing and real estate Projects in Nepal and role of cadastral survey
Er.Madhav Prasad Koirala
PhD Scholar of Singhania University, Rajasthan (India)
Abstract
Risk identification is important for all Housing and Real estate projects among various risks cadastral survey risk is one, which play important role during land purchasing, pooling, plotting and laying out the project. This is significant on especially in multicultural communities like Nepalese society. It includes identification of cadastral survey risks and probable disputes among neighbor regarding the border line of the land and question about laying down the construction projects. It is important to minimize those problems for successful project delivery and increase the profitability of the project. Objective of this paper is to identify the cadastral risks and find the dispute of the housing and the real estate projects. This research present the survey and analysis and conclusion based on the response.
Key words: Cadastral Survey risk, identification, Disputes ranking, construction projects.
Introduction
Space engineering is very interesting and very important science in the present context that too in Nepalese context since it is being land locked and least development countries. It is being complementary in modern time.
Advancements in the space technology have contributed to the human life considerably.The technology has been exploited for making human life easier and more secure in large extent. Space technology application for managing unavoidable natural disasters, human induced disasters and other societal problems/situations is one ofsuch examples. Space technology application has brought the possibilities of real time mappingof disasters and its in-time management. The application of space technology was brought into practice in Nepalese society during 1970's. It has been used for surveying, mapping, and land use mapping activities of the country (Baral & Bhtta, 2006). Cadastral Survey is one of among various type of survey to measure the land. In Nepal Land survey has been started on 17 th century and it was completed on 2000 of all 75 district of Nepal as per official website of Government of Nepal, Ministry of Land Reform and Management, Survey Department http://www.dos.gov.np/orgcad.php.
Unavailability of new technology and not accessible of skill manpower and equipment, Plain table survey was adopted and used to measure the land is mainly chain and tape were carried out. Causes being the same various errors and mistakes have been made on that time consequences are the land is either less or more than mentioned in cadastral map. The population being increasing and land is being fragmentized consequently land and population is directly related with each others. Therefore anyone developer who want to purchase the land for real estate work, has to be careful to face the cadastral survey risks.
Background
Demand for land and housing units has been growing with the rise in population. Two decades ago when housing concept was introducing in the country, the population was at 18.4 million, but now, it has reached 26.6 million, according to a preliminary report of the National Census 2011. Mainly, cities are getting more unmanageable because of internal and external migration and lack of proper housing facilities in accordance with the increasing number of urban poor. The basic infrastructure for housing is appropriate land plotting or land pooling.
The land pooling programmed contributed development of infrastructure, better environment, comfortable housing plots in Nepal, especially in Kathmandu Valley on the expenses of land owners. The government and donor should assist and encourage such programmers’ all over in Nepal. It is also required to train engineers to carry out such programmed on ethnic community areas.( Oli P.P,2010)
After an inception of housing and real estate project, land purchasing process starts. Before buying the land every developer should to identify whether quantity of land is existed in the field or not? To identify the same cadastral survey must be carry out to minimize the risk. The land and real estate project suffering due to the cadastral survey risk without verified the quantity and shape of the land. After carry out this survey the conceptual design might be changed, changes in concept and implementation of deed and title registration are analyzed, and related to sustainable development of the project.
In the different function it is said that the housing policy 1996 of Nepal is going to amendment to address the present problems. “It is said that the policy will be revised soon as necessary consultations with NPC (National Planning Commission) have already been completed,” said authority of ministry of physical planning.
The revised policy will also devise a mechanism to regulate land plotting and discourage haphazard plotting without ensuring proper road, drainage and drinking water facilities.
"Following the increase in migration to urban areas, the trend of living in rented houses has gone up. According to the National Census 1991, only 2 percent of the total population of 18.4 million lived in rented houses.
The country had 3 million housing units then. But now, although the number of housing units has increased to 4.8 million, an estimated 8 percent of the total 26.6 million population lives in rented homes.(The post reporter, 10 November, 2011, the kantipur publication, 2011)"
“Around 35 percent of the Kathmandu Valley’s population lives in rented homes,” said Achayra. According to the preliminary report of the National Census 2011, the Valley is home to 2.51 million people. (The post reporter, 10 November, 2011, the kantipur publication)"
All realtor, stake holder, professionals, professionals are worried about the present condition of housing and real estate because this sector contributed more than 6% to the GDP. To uplift this sector government have to bring good plan as soon as possible.
"New policy covering to all issues and vision should be clear without delayed, if government wants to develop the housing and real estate sector in the country. One door system for approval is urgently initiated by the government."(Koirala M. P, 2011)
The following table shows the Housing plots in different 7 zones. The trend of data shows that it will going on in future also and cadastral survey is must in every one plot to minimize the survey risks.
Zone / 1998/99 / 1999/2000 / 2000/01 / 2001/02 / 2002/03 / 2003/04 / 2004/05 / 2005/06 / 2006/07 / 2007/08Mechi / 77 / 5 / 76 / 53 / 24 / 25 / 10 / 8 / 90 / 162
Janakpur / 43 / 81 / 123 / 413 / 6 / 6 / 170 / 72 / 31 / 25
Lumbani / 264 / 348 / 2954 / 248 / 287 / 79 / 55 / 40 / 106 / 167
Gandaki / - / - / 76 / 8 / - / - / - / - / - / -
Bheri / 82 / 35 / 241 / 280 / 62 / 14 / 44 / 12 / 41 / 37
Seti / 102 / 84 / 104 / 48 / - / - / - / - / - / -
Mahakali / 151 / 50 / 55 / 52 / 80 / 25 / 15 / 8 / - / 6
Total / 719 / 603 / 3629 / 1102 / 459 / 149 / 294 / 140 / 268 / 397
The above mentioned data is taken from one company and only 7 zones and it is not given the Bagmati zone which may be more plotting activity compare to others.
Legal Constraint
To start the land pooling or plotting works cadastral survey is must based on the blue print map or trace map provided by district survey department. It is wise from each one to identify the land to be sure about the risks. In the same way, before starting the housing and real estate work some legal constraints are there which must be obeying developers are the legislation started in 1954 enacting Development Committee Act 2013. The Town Development Act 2045, and Land Reform Act 2021 and Byelaw 2060, regulates the land pooling activities.
Number of Housing Plots Sold/distributed by Housing Company in Different Zones, 1998/99 to 2007/08
Source: Rural Housing Company Ltd.
Problems in housing and real estate
As we know, real estate projects is rapidly growing one of new sector in Nepal and also facing from various adversities. It is also observed that the recent crisis observed in financial institutions of the country is the consequence of the investment on this sector. However, no systematic effort has been initiated either by government or by professionals to study the role that has been played by this sector in national economy as well as the risks associated in this sector. The first problem is price of land increased in the cities consequently the price of housing and real estate also increased. Secondly more people invested their money on land and liquidity problem seen on the economy of the country so that bank and financial institution stop to invest in this sector, thirdly Bank and financial institutions increased the interest rate.
Fourth the political system became unstable and there is no clear policy from government to monitor and control the unmanaged land polling (plotting) and housing, apartment system. Beauty of the city has become worse as compared to Nepali's original median period. Regulating this has not been effective. Dispute has been arising about the ownership within the neighbor because of the lack of open space. Safety and security to the citizens has become big problem during construction and maintenance period. The fifth and important problem is the cadastral survey problem, and it is either less or great amount of land as per Land Owner Certificate. Therefore, this study will be a pioneering work and will provide a firm basis and future direction for housing and real estate companies in Nepal. Similarly, it will also help government for formulating and revising its policies affecting this sector.
Beyond simply capturing aspects of the experience of risk, the procedures employed herein allow one to incorporate considerations of vulnerability and cumulative risk in systematic ways for land use planning processes and environmental management. In the end, the risk contours portrayed in this research are not solid topographies of rock that lie immobile on their pediments but, rather, dynamic, shifting, and organic potentials of risk that can be reshaped through vigilance, care, and progressive intervention.( Raul P. Lejano and C.Scott Smith, 2006),
Various kinds of land disputes exist in Nepalese society. As the cadastral surveying prepares fundamental base (maps and documents) for land administration, its effectiveness certainly depends upon the accuracy and quality of cadastral surveying. Land disputes come to the front during land administration activities such as transfer of ownership, demarcation of parcel owned, etc. Deficiencies in cadastral surveying are some of the causes behind land disputes. (Bhatt G.P., 2006) According to him 15 categories land dispute are identified. Similarly some 24 Reasons of Possible Land Disputes have been mentioned.
Following risks can be minimizing if stake holder carefully study on the problem mentioned below:
i. Unclear cadastral or blue print map, the plot no., road, foot trail, boundary, of the particular plot is not mentioned in the map and existed in the field.
ii. Quantity of land is not verifying as per Land Owner Certification paper (the lalpurja) and in the field either it seems less quantity or more. Only the few cases, it is verifying.
iii. Some of the plot no is not matching as per file map and trace map.
iv. Improper demarcation of boundary on the ground.
v. Errors in trace copy of original cadastral maps and wear and tear of documents.
vi. Errors in file maps prepared in larger scale from original maps.
vii. Displacement in the location of features, natural as well as cultural, with respect to existing maps.
viii. Inaccurate representation of reality at the margins of island maps.
ix. Problems with ownership in the land distributed by special commissions.
x. Wrong reality mentioned in the survey.
xi. Wrong marking of subdivision on cadastral map.
xii. Existed bench marks are missing and not replaced by the authority.
xiii. Wrong interpretation of the agreement mentioned on the deed document prepared at the time of transaction
xiv. Overlapping of public lands.
xv. Transfer of ownership over public land by local authority beyond the legal provision.
xvi. Mismatching of existing maps with new maps prepared by cadastral resurveying.
xvii. Land Owner Certificate available from District Land Revenue Office and Blue print or Trace map available from Survey Office is different.
xviii. Mistakes in documentations during cadastral surveying.
Objective of the Research
The main objective of this research was to identify the cadastral risks and rank them in housing and real estate projects which support the successful application of risk management in construction projects in Nepal. The result of this study are expected to provide useful guidelines for forming and operating effective and in housing and real estate projects both in Nepal and in other similar economies countries.
Methods and Methodology
Questionnaire surveys were distributed to (30) respondents who are doing their business regarding land buying plotting and selling, real estate profession and who are registered under the Nepal Housing and Land Association. A response rate of fifty-percent (90%) was obtained. The purpose of the questionnaire survey was intended for a better feedback on the extent of the use of arrangement and the Cadastral survey problem during housing and real estate projects.
Analyzing
60% respondents replied that, to get survey map (Blue print and trace map) is very difficult and rest of 20% said it is difficult and no one said it is very easy or easy.