Depending on the exchange process, a property’s ownership can be exchanged through different types of deeds in real estate. For instance, if someone wants to sell their property to another person or organization, they have to prepare a saf-kabla deed and register accordingly. Likewise, if someone wants to donate their property to a person or an organization, they are legally required to prepare a document called Deed of Gift. However, there are certain fees associated with every kind of deed. And the Deed of Gift is no exception. In this article, we will discuss everything from the registration fee of the Deed of Gift to other important things.
Deed of Gift
On the whole, a Deed of Gift is a legal documentation of an agreement between a donor and a recipient where the donor voluntarily transfers the ownership of the property to the recipient without the expectation of getting anything in return. But if the recipient is a person, they should be of legal age and sound of mind. However, a donor can never donate away their entire property to any entity. Only one-third of their property can be donated according to the law in Bangladesh.
There are different types of deeds and every deed including the Deed of Gift includes five fundamental information-
- Detailed information about the property
- Proper information or identity of the seller or giver
- Proper information or identity of the buyer or receiver
- Proper information or identity of the witness
- A date denoting the completion of the deed
Registration fee of deed of gift
During the registration process of Deed of Gift, you have to pay a registration fee, stamp duty, and local government tax. Here is how much you have to pay during the registration-
Registration fee: 1% of the total value of the property written in the deed.
Stamp duty: 1.5% of the total value of the property written on the deed.
Local Government Tax: 2-3% of the total value of the property written in the deed (Local Government Tax is set to 2% of the total property value if the property fall under the City Corporation or Cantonment Board, otherwise, the tax will be 3%)
The other important things
In addition to the fees, taxes, and duties mentioned above, the following charges and fees are mandatory for each document:
- Affidavit on a stamp will cost BDT 200
- E-fee: BDT 100 will be applicable
In Bengal, for every 300 words, one page or part of it will cost BDT 16
In English, for every 300 words, one page or part of it will cost BDT 24
- (Remuneration of counterfeiters) NN Fees: –
For every 300 words in Bengali, one page or part of it will cost BDT 24
For every 300 words in English, one page or part of it will cost BDT 36
- A court fee of BDT 10 per application for transfer of property will be applicable
Local Government Tax does not apply to any donations in favor of registered religious, charitable, sports, and cultural institutions.
All in all, these are the things that you needed to know about the registration fee of the Deed of Gift and all the additional charges. And knowing all these details will definitely help you understand the inner workings of the transfer process better.