The first thing you must consider before buying a piece of property is whether you want to purchase a movable or immovable property, in other words, a land or an apartment. There are legal proceedings and processes which one must navigate through before owning a piece of property.

It can be a daunting procedure and to better understand buying a property in Bangladesh, we have created the ultimate guide for buying property in Bangladesh

Location:

When it comes to purchasing a property in Bangladesh, there are many factors which the buyer must take into account before proceeding, with location being the most important as it will decide the pricing of the property. Generally the buyer has two choices to avail from; inside or outside the city. Prices of properties vary greatly according to these two locations with city being generally more expensive. However, the one factor which is constant in Bangladesh is the road-location pricing. If you happen to buy a property near the main road/highway, the price is quite high.

Note: Always choose a location that is on the outskirts of a city and is probable for heading towards development in the future, as you can profit from such developments.

Confirm & Verify Record of Rights from Land Office:

The first step when buying a property in Bangladesh is to visit the Land Office. The Land Administration System in Bangladesh maintains and records revenue and ownership. Under the Ministry of Land, their offices hold land records and surveys, publications and any necessary details regarding all registered properties that you are looking to buy.

Conduct Mutations & Verify Khatiyans of Land of Property in favor of the Seller:

Before proceeding, ensure that the seller has not purchased the said land before. If so, view all Sale deeds (Via Deed) to assure chain of ownership. It is expected that a chain of 25 year ownership should be clearly determined.

Next, seek documents of Khatiyans from the seller. You must check the Khatiayan record as supplied by the seller which needs to be verified through lawyers; whether the documents supplied establishes ownership (either through purchase or inheritance) in favor of the seller.

You should also verify the Khatiyan records with the Deputy Collector’s Office well after you receive your reports from the Commissioner’s land office.

A Physical Survey of the Property:

The next stage of this process is to head out and assess the prospective property for yourself. You, as the buyer should conduct a physical survey of the land before settling on a decision. A physical survey will provide the current conditions and verify the possession of the land. Ask the seller to provide any or all records of payments of updated Ground Rate for the prospective land. If the Ground Rate is not clear, the sub registrar’s office may refuse to register the property. It is advisable, however, that you take someone experienced with you during these surveys who has had dealings in purchasing property before.

Multiple Sellers & Attorney:

This is a common issue in Bangladesh which many buyers face when it comes to property. Sometimes the property may be recorded in the name of the predecessor of the current seller. If that is the case, a Warishan Certificate, issued by a representative of the local government, has to be checked. Many people face legal issues after having bought a property only to have it’s true ownership come into question later on. You must always assure through documentation that the current seller has all legal rights to the property.

Obtain a non-encumbrance certificate (evidence of entitlement of the property) from the relevant sub-registry office if there are questions regarding previous ownerships.

As a buyer, you should check the legal status of the land (mortgaged or leased or ownership) through a land report if you can manage it. It will give you an idea about the current status and ownership of the land including chain of ownership, land tax, land record, registry status, etc.

Preparation of the Deed of Transfer & Pay Stamp Duty:

When you are ready to draw up legal documents, hire the help of a lawyer. The transfer deed is best arranged by the lawyer and must be prepared with stamped papers that should cost 5-7%of the property value to get it. This is known as the ‘stamp duty’. Any other deed, concerning the buying of the property (Baina Deed) between the seller and yourself must be registered as well.

Applying for registration at the Sub-registry Office:

Before registering the new ownership, an application for the change in ownership must be made at the Sub-Registry Office, where you must present all necessary receipts including the Deed of Transfer. Within 2 weeks time, you will be provided with a certified registration document, which you have to show at the Land Revenue Office during final registration. One point to be noted is that the original deed certificate under the new owner’s name could take up to several months to obtain.

Registering the change in ownership at the Land Revenue Office:

After the purchase has been made, everything must be registered at the Land Revenue Office. They will guide you on all necessary steps and procedures regarding the final transfer. Keep in mind that the new owner, under whose name the land is registered, is responsible for paying land taxes and financial upkeep from that point on.

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