Legal Considerations to Bear in Mind Before Buying a Flat in Bangladesh
Real estate law Bangladesh, The buying of a flat is a significant investment, and it is necessary to review all legal issues thoroughly before a purchase is made. In Bangladesh, many buyers find themselves entangled in legal issues due to their failure to scrutinize essential documents and land records. To avoid such complications, it is crucial to understand the key legal considerations guided by real estate law Bangladesh.
1. Confirm Ownership and Title Deed
The first and most essential step, as per real estate law Bangladesh, is confirming ownership of the property. The Title Deed (Dalil) proves the seller’s ownership, while the Bia Deed confirms the sale between the previous and current owners. A Mutation Certificate must also be verified—it indicates the legal transfer of ownership in government records.
2. Verify Land Documentation
Many flats are constructed on disputed or encroached land. To ensure the legal standing of the land, real estate law Bangladesh mandates verification of the Khatiyan (Record of Rights), including CS, SA, RS, and BS records. These records must match the seller’s name. Additionally, examine the Dag and Plot Number to confirm the exact size and location of the land, along with checking the Land Tax (Khajna) Receipt.
3. Check for Necessary NOCs
Under real estate law Bangladesh, a No Objection Certificate (NOC) is mandatory from the respective authority such as RAJUK in Dhaka or CDA in Chattogram. NOCs from utility service providers like WASA, Titas Gas, and DESCO confirm there are no dues. If the flat belongs to a housing society, ensure you collect a society NOC as well.
4. Verify Builder Credentials
If you’re buying from a developer, make sure they are compliant with real estate law Bangladesh. Check for their Trade License and RAJUK/CDA registration. Also verify that the builder has proper permissions for construction and sales. An approved Building Plan and Construction Permit are vital for confirming the legality of the building.
5. Building Plan Approval
Unauthorized structures face demolition or fines. To comply with real estate law Bangladesh, ensure the building plan has been approved by the relevant authority—RAJUK, CDA, or a municipal office. Any deviation from approved plans can lead to legal and financial trouble.
6. Legal Status and Encumbrance Check
Avoid future ownership disputes by verifying the flat’s legal status. For joint purchases, a Joint Ownership Agreement is essential. Also, request an Encumbrance Certificate, as required under real estate law Bangladesh, to confirm that the flat is free from mortgages, loans, or other legal complications.
7. Loan and Mortgage Clearance
According to real estate law Bangladesh, you must ensure that the property is free from outstanding loans. Ask for a Loan Clearance Certificate and a Bank Release Document if the property was previously mortgaged.
8. Drafting and Signing the Sale Agreement
Before making any payments, draft a detailed Sale Agreement outlining the buyer and seller details, payment terms, flat size, delivery date, penalties, and legal remedies. This document should comply with real estate law Bangladesh standards and may require review by a lawyer.
9. Registration and Mutation
Once the transaction is complete, register the flat with the Sub-Registrar’s office. As stated in real estate law Bangladesh, the buyer is responsible for paying registration fees, stamp duties, and applicable taxes. Mutation must follow registration to ensure government records reflect the new ownership.
10. Understand Hidden Charges and Dues
Besides the flat price, real estate law Bangladesh emphasizes checking for service charges, unpaid utility bills, and property taxes. Ensure all previous dues are settled before taking possession.
Final Advice
Purchasing a flat is a lifetime decision. Ignoring the legal process can result in heavy financial losses. It is always advisable to consult a qualified property lawyer familiar with real estate law Bangladesh before finalizing any deal.
