Are you in pursuit of acquiring your own flat? In a densely populated country like Bangladesh, where land values are high and development space is limited, not everyone can afford to purchase land and construct a house of their own. Hence, many individuals opt for purchasing flats as a more feasible alternative.

Nevertheless, buying a flat in Bangladesh requires navigating through various legal intricacies. This is where our expertise comes into play. In this blog, we have outlined in detail all the essential legal considerations involved in purchasing a flat in Bangladesh. Let us get started then!

Current Market Scenario in Bangladesh

The current consumers buying flats in Bangladesh usually belong to a few certain demographics, much like the case around the rest of the world. However, after a thorough analysis of the market trends and its repetitive consumers, we have been able to pin it down to three demographics, as listed below –

• First-time buyers – seek assistance with document preparation and the registration procedure

• Non-resident Bangladeshis – looking to buy a flat in Bangladesh and seek assistance on legal matters

• Property sellers – intending to sell their flat and require help in transferring ownership to the buyer

Purchasing a Flat in Bangladesh: Essential Documents

When purchasing a flat in Bangladesh, ensuring the authenticity and legality of essential documents is paramount. Below presented is a list of the essential documents –

Land Deeds

• Title Deed:  The Title Deed outlines property ownership rights, including usage, transfer, and sale. Reviewing this document with legal experts ensures transparency and clarity regarding ownership status.

• Mother Deed: The Mother Deed is foundational proof of ownership, preventing disputes and establishing ownership lineage. Its authenticity is crucial in establishing a clear ownership chain.

• Sale Deed: The Sale Deed confirms ownership transfer and is essential for validating legal rights and protecting investments.

Mutations

Mutation is an official record confirming the successful completion of registration, affirming the property’s ownership transfer. Recognized by the register office, this document further reinforces the legal status of the property and its ownership history.

City Survey

The Bangladesh Government conducts periodic land ownership surveys in Dhaka, updating existing records and adding new owners. This document, containing details like Daag number and Porcha, serves as an official record to verify property ownership and information.

RAJUK Plan of Approval

Prior to commencing construction, obtaining the RAJUK Building Approval certificate is essential. This certificate ensures adherence to regulatory standards and mitigates potential legal complications.

Purchasing a Flat in Bangladesh: Pricing and Fees

Understanding the pricing and fees involved in purchasing a flat in Bangladesh is essential for prospective buyers. Here are the key components to consider –

• Stamp duty: 4% of the property value for urban areas and 3% for rural areas.

• Registration fee: Amounts to 2% of the property value.

• VAT: Represents 1.5% of the property value.

• Legal service fees: Subject to variability based on case complexity and specific service requirements.

Summary

In conclusion, navigating the landscape of property acquisition in Bangladesh demands meticulous attention to documentation details and expert guidance. Whether you are a first-time buyer, a non-resident Bangladeshi, or a seller seeking seamless property transaction support, ensuring compliance with the required documents remains detrimental to a successful property transaction in Bangladesh.

Furthermore, by partnering with reputable real estate agencies like Tropical Homes Limited, you can commence your property ownership with assurance, aligning with legal requirements. For any queries, reach out to us at +88 09666 777 551 or email us at sales@tropicalhomesltd.com. Your own space awaits you!

Frequently Asked Questions (FAQs)

1. What are the legal requirements for purchasing property in Bangladesh?

To buy property in Bangladesh, you will need to ensure compliance with regulations such as obtaining clearance from related authorities, and more.

2. How can I verify property documents in Bangladesh?

Verify property documents in Bangladesh by conducting thorough due diligence, including checking land records at the relevant Sub-Registry Office.

3. What are the types of property tax in Bangladesh?

Taxes on properties in Bangladesh typically include stamp duty, registration fees, capital gains tax, and more.

4. What are the legal risks of buying property in Bangladesh?

Legal risks include disputes over land ownership, incomplete documentation, encroachment issues, and more.

5. Can foreigners buy property in Bangladesh?

Foreign nationals can buy property in Bangladesh with certain restrictions, such as obtaining approval from BIDA, the Reserve Bank of Bangladesh, and more.