LEGAL DOCUMENTS TO CHECK BEFORE PURCHASING A LAND

Investments in property are usually for the long term, be it for price gains or building a residence. Since it usually involves a huge sum of money, buyers tend to be sensitive and cautious about the transaction. Assessing legal documents is a part of the safety measures in order to avoid future hassles. In Bangladesh, land is a popular asset for investment and checking the legal documents for purchasing land is a relatively lengthy process to ensure protection against real estate scams in Bangladesh. Since this particular asset always appreciates over time and has no depreciation, it has gained massive popularity. Then again, as lands become more and more desirable, certain people take illegal steps such as land grabbing to gain possession of a property. To prevent this from happening with your property, make sure to check the following legal documents for purchasing land.

Authenticity of the Deed

One of the core legal documents for purchasing land that states the ownership of the property is the deed or the title deed. Therefore, the first thing to do as a buyer is to check whether the deed is authentic. To do this, you need to visit the local sub-registry office for that particular location. They have an original copy of the deed and you can check the authenticity yourself. Also, if you want, you can get a certified copy of the deed by paying a small fee to this governmental office. An important thing to notice is whether any Bantan Nama (Partition Deed) for the property exists. This would state distribution plans to the predecessors of the original owner and if anyone else could have any claim to the property.

All Baya Records

Baya records include the transaction history of the property. Every time a property is handed over, a baya record is created. You, as a new owner, need to check the record to understand whether the current deed is in place or not. Also, it is important to check baya records to ensure the validity of the record chain. Usually, common practice is to check baya records of the previous 25 years of the land but investigating the entire history is your safest bet. If everything is in order, then you are good to proceed.

All Relevant Government Records

Since a piece of land is usually under government lease, the government keeps a number of records for the property. They mostly include a CS (Cadastral Survey), a RS (Revisional Survey), a SA (State Acquisition) and a City Survey. CS and RS vary from property to property as they are two methods of the same survey where CS is the old version. But if your property has both, it is wise to check them for your own benefit.

All these records are then compiled into a summary. Looking at this, you will be able to understand all the records at a glance and check whether they are in order or not.

Mutation Khatiyan

The replacement of title of the previous owner with the new owner is called a Mutation and it should appear on Khatiyan. It is a must among the documents required for land registration and property transfers. Because without the Mutation, the previous owner might claim ownership or transfer ownership to others. And if you are purchasing the property, without a Mutation, you cannot claim it as your own either. Hence, it is very important to check the Mutation history of the property.

Mutation is always followed by a Duplicate Carbon Rashid (DCR) which can be obtained from the AC (Assistant Commissioner) of a land office. It is a validation for up to date rent receipt for the ownership of the property. Make sure your seller has both.

Non Encumbrance Certificate

This document checks whether the property has any claim on it or if any mortgage is present. In many cases, people take bank loans to purchase land and the land becomes an asset backing the mortgage. Failing to provide the dues in time transfers ownership to the lender (in this case, the bank). To check whether your seller has any such records on the land, you need to collect the Non-Encumbrance Certificate (NEC) from the sub-registry office. If it has any pending mortgage, you will not get an NEC.

Additionally, you need to check if the land has any ongoing/ unresolved lawsuits against it. The AC Land Office of the designated area has such records for all properties under their jurisdiction. Lastly, do a random check with the neighbors about your property or the seller. Then again, you can also seek further legal inspection for more accuracy of the legal documents for purchasing land.

Checking legal documents is a must, whether you are looking to buy an apartment or a land. Did you ever miss one of these steps in the land buying procedure? And if so, have you ever suffered an issue regarding land?