How to Buy Bank Auction Property in Nepal

When a borrower takes a loan against land, a house or another asset, the bank holds that asset as dhito (धितो), or collateral. If the loan is not repaid, the bank can sell the collateral at a public auction to recover what it is owed. The sale takes place on the terms in the bank’s notice, and it is the bank, not AuctionMandu or any other website, that runs it.

Auction property can be land (जग्गा), a house (घर), an apartment, a shop or office, a factory, a hotel, machinery, vehicles or even shares. Each category can be browsed separately, for example land auctions, house auctions or commercial property auctions.

Banks announce each sale in an auction notice, called a lilami suchana (लिलामी सूचना), usually in a newspaper and often on their own website as well, so they are easy to miss. AuctionMandu collects them in one place, so you can filter by type, district and bank, and every listing shows the contact details of the bank running the sale.

If you already have an area in mind, start with a district page such as Kathmandu, Lalitpur or Kaski, then open the listings that interest you.

A listing summary is a starting point, not a substitute for the notice itself. Ask the bank for the complete lilami suchana and read it line by line. It normally describes the property (for land, the plot or kitta number (कित्ता नम्बर) and the area), and sets out the base price, the deposit you must submit, how and by when to bid, how the property can be inspected, and how long you will have to pay the balance if you win.

Look out for conditions that move cost or risk onto the buyer, such as who pays taxes and registration fees, whether the property is sold as it stands, and what happens if the sale is delayed. If anything is unclear, ask the bank in writing before you bid.

Visit the property yourself during the inspection period and check that what you see on the ground matches the notice: the location, road access, boundaries and the condition of any building. Ask the bank for copies of the ownership certificate, the लालपुर्जा (lalpurja), the trace map (नक्सा) and the boundary description (चार किल्ला), and verify them independently at the relevant government offices.

Our guide to documents and checks before bidding explains each document and what to look for. Find out, too, whether anyone is living in or using the property, and how the bank expects possession to be handed over.

The price you bid is not the only cost. Registration charges, any dues outstanding on the property, professional fees and repairs can add a considerable amount, so settle on your maximum bid only after you have estimated them. Our guide to costs to budget for has a checklist.

If you plan to borrow, speak to lenders early. Loan approval takes time, and the balance usually has to be paid within the period set in the notice, whether or not your loan has come through.

Bids go to the auctioning bank, following the method in its notice. That may be a sealed bid (बोलपत्र) submitted by a deadline, an open auction on a set date, or another format the bank specifies. You will normally need to submit a deposit, known as dharauti (धरौटी), with identity documents such as your citizenship certificate and, where the bank asks for it, your PAN. Companies bid with their registration and tax documents.

Keep copies and receipts of everything you hand over. If your bid is not successful, the bank returns the deposit according to the terms of the notice.

If your bid is accepted, the bank will tell you how and by when to pay the remaining amount. Missing that deadline can cost you your deposit, so be sure of your funds before you bid. After full payment, the bank provides the documents for the transfer of ownership, which for land and buildings is registered at the Land Revenue Office (मालपोत कार्यालय). When the property is in your name, check the new lalpurja carefully and arrange possession as agreed with the bank.

AuctionMandu is a listing and contact service. It does not run auctions, accept bids or take deposits. Every listing names the auctioning bank, so you can contact the bank directly for the full notice, an inspection and the bidding details. Auctions are sometimes postponed or cancelled, for example when the borrower settles the loan, so confirm the current position with the bank.

For the process from the bank’s side, read how bank lilami works. You can also browse the FAQ or contact us with questions about the site.