The buying of a flat is a significant investment, and it is necessary to review all legal issues thoroughly before a purchase is done. Most people in Bangladesh are involved in legal problems because they do not scrutinize important documents and properties. In an effort to avoid legal problems, it is of high importance to understand the important legal aspects prior to acquiring a flat in Bangladesh.
The most important step is the confirmation of ownership of the property. Confirm that the seller is legally allowed to sell the property by confirming the Title Deed (Dalil), which indicates ownership. In addition, the Bia Deed (Sale Agreement) confirms the sale agreement between the current and previous owner. The Mutation Certificate is another extremely crucial document, which shows that the property has been registered in the seller’s name in government records.
The majority of the apartments are built on disputed land, so it is important to crosscheck the land documents before purchase. Make sure that the Khatiyan (Record of Rights) is also verified to determine rightful ownership. There are different Khatiyan, i.e., CS, SA, RS, and BS, and they must all match the seller’s name. Similarly, check the Dag and Plot Number to determine the exact location and size of the land. Additionally, the seller has to provide a Land Tax (Khajna) Receipt as proof of payments of tax.
A No Objection Certificate (NOC) is required from various authorities before purchasing a flat.You will need to obtain a NOC from Rajdhani Unnayan Kartripakkha (RAJUK) or Chattogram Development Authority (CDA) based on your locality. It will be beneficial if you are free of arrears by the utility companies such as WASA, DESCO, and Titas Gas too.If the property is part of a housing society, a NOC from the society is necessary to confirm its legal status.
If you are purchasing a flat from a builder, their credentials need to be checked. They must be producing their Trade License and Registration. It needs to be verified that they are licensed to build flats and sell them legally. The construction also needs to be approved by RAJUK or CDA, whichever is applicable in the case at hand. One must have an authentic Construction Permit to ensure the building has been sanctioned by the law and it is not slated for demolition.
Another key aspect is to ensure approval of the building plan. The building has to be approved by the respective authority, either RAJUK, CDA, or a municipal body. Unauthorized constructions can face legal action, like demolition, which leads to significant financial losses.
Flat buyers also need to verify the legal status of the property to avoid ownership disputes. If the flat is being bought by more than one individual, make sure there is a Joint Ownership Agreement. Request an Encumbrance Certificate as well, which confirms whether the property is free from any legal complications, mortgages, or pending loans.
Many properties are mortgaged with banks, and purchasing such a flat without clearing the loan can lead to legal issues. Ensure that the seller provides a Loan Clearance Certificate to confirm that all debts have been paid off. If the property was under a mortgage, request a Bank Release Document as proof that the loan has been fully settled.
Before making any payment, signing a proper Sale Agreement is crucial. This agreement should include details of both the buyer and seller, complete information about the flat (such as size, price, and location), a payment schedule, a delivery timeline, and penalties for breach of contract. Legal remedies in case of disputes should also be clearly outlined in the agreement.
After the completion of purchase, one needs to get the flat duly registered. The buyer and seller must sign the Deed of Agreement in the office of the sub-registrar. The government fees, stamp duty, and applicable taxes must be paid by the buyer. The mutation process must be undertaken after registration to transfer the ownership in government records for legal possession of the flat.
Other than the purchase price, buyers should be informed about hidden fees and obligations. Monthly service charges for apartment maintenance could be there. Property tax obligations should also be clarified. It should also be ensured that all previous utility bills and other dues are cleared before possession.
Buying a flat is a long-term investment, and ignoring legalities can lead to tremendous financial loss and disputes. Before finalizing the deal, it is advised to meet a legal expert or property lawyer to verify all the documents necessary. Following these legal procedures, you can ensure a safe and hassle-free property transaction in Bangladesh.
For legal assistance with property transactions, contact The Justice Corner, your trusted legal partner for all Bangladesh property matters.
