As many of you will buy an apartment with your life’s savings, it is important to know about the core legal issues of your dealings. Since real estate is a sensitive matter, there are several things that you should know. To give a glimpse, in our previous post about real estate laws in Bangladesh, we covered the legal aspects for developers, buying/selling a property and property contract. As per the Real Estate Development And Management Act, 2010, there are few more things remaining on this contract. Let’s find out what we have left out.
Payments of Properties
If we follow the sequence, after agreeing to the contract comes payments. The law in Bangladesh states that all the payments should be made through banks according. Also, it should follow the rules and conditions mentioned in the prospectus. Obviously, you will pay in installments. However, if you fail to pay in due time, the developer has to send you a formal notice via mail. The catch is, the developer must send the notice at least before 60 days. Otherwise, they cannot cancel your booking for the property. However, if you wish to pay back later, you might have to pay additional 10% interest on the installments.
Again, if you want to cancel your booking by yourself, you can. Then the developer will cut down 10% on the total amount you have paid so far. They can take up to three months for this process. However, if the developer wishes to cancel their end of the contract, then they will have to pay additional 15% of the total amount paid, within six months at max.
Property Construction Plan & Additional Papers
It is a must get the approval of the concerned authority and the signatures of the plot owner and the developer before handing the plan to the buyer. Also, a developer must mention all the elements, materials and fittings planned for construction of the property in the contract. Moreover, developers have to manage proper expertise by themselves for the construction. Lastly, it is a duty of the developer to display all the core information regarding the property at the construction site.
Deviation of The REAL ESTATE LawS
Since there is a law, naturally there will be deviations. Deviations can take place for either of the three parties involved, the developer, original plot owner and the buyer of the property. Cases might be that the developer is constructing the building without an approved plan or proper authorization of the plot owner. Then, owner or buyer can accuse the developer of not using the exact materials described in the property contract. On the other hand, original plot owner might not hand over the land in due time in the right way. Then developers can take legal actions against them as well. According to this law, there are different punishments for different deviation of this law. However, the accused can be punished by a maximum of 3 years of imprisonment and maximum of 20 lacs in fine.
In the Real Estate Development And Management Act 2010, there were these six main chapters, and we have covered the highlights of all of these in two posts. Hope these come beneficial to you if you have to deal with the certain situation while dealing with property in Bangladesh.