Compliances for Land Development in Bangladesh: Things You Need to Know | JCX Developments Ltd.
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Compliances for Land Development in Bangladesh: Things You Need to Know

In Bangladesh, land is a pillar of social and economic stability, signifying both security and status. With increased urbanization and rising demand for residential and commercial space, effective land management and utilization have become crucial. Given the scarcity of land, maintaining its planned use is critical for promoting sustainable development and meeting the demands of a growing population.

Ministry Initiatives for Effective Land Resource Management

To carry out these objectives, the Ministry of Land initiates a variety of projects aimed at successfully regulating and managing land resources. These include maintaining records for government-owned khas lands, monitoring vested and abandoned properties, and facilitating land surveys to determine ownership. Furthermore, the ministry oversees land purchase and requisition processes, ensuring that urban growth and commercial projects adhere to legislative standards. Such efforts seek to provide a balanced approach to land development that promotes equitable growth while adhering to national policies.

Key Legal and Regulatory Compliances

Land Ownership Verification

Collect Property Information

Begin by gathering basic information about the property, such as the plot (dag) number, Khaitan number, current owner's name, and precise address. These facts are critical for obtaining official records and establishing ownership at government and local offices.

Establish the Chain of Title

Check the property's ownership history by studying the current owner's details and talking with local sources. Check this preliminary data against legal papers to guarantee an unbroken chain of ownership. Any gaps or anomalies in the title can result in legal issues, thus thorough paperwork is required.

Authenticate the Title Deed

- Search at the Sub Registry Office: Cross-reference deed details such as the deed number and registration date to ensure its legitimacy. Obtain a certified copy from the Sub Registry Office if necessary. - Review Historical Transactions: Assess documents for at least the last ten years for any hidden encumbrances. For a more comprehensive validation, check up to 25 years of transactions. - Check Inheritance Deeds: If inherited, confirm associated documents such as Partition Deeds (Bonton Nama) to establish a clear line of succession. Unverified inheritance documents may result in future claims. - Online Verification: Use government portals such as ePorcha and Land Portal to check land records online.

Taxation and Financial Compliances

Property Registration Fees

Registration fees have been reduced to 10% of the property's value, down from 14%, offering significant relief to buyers – this includes: - 1% Registration Fee - 1.5% Stamp Duty - 3% VAT -  2% Local Government Tax

Stamp Duty & Taxation

Stamp duty ensures the legal legitimacy of the sales agreement. Buyers must also pay VAT and local government taxes based on the entire property value.

Advance Payments

Buyers often pay 10-30% of the property's price as a down payment to formalize the sale agreement with the seller.

Mutation Fees

The mutation is required to legally transfer ownership and amend Khatiyan records, allowing buyers to register for land development taxes and sell the property in the future.

Sale Permission Fees

Required for leasehold properties (e.g., RAJUK or NHA plots), but not for freehold homes. The vendor must obtain this approval before beginning the registration process.

Home Loan Payments

Banks provide house loans with monthly installment alternatives. A strong credit score and financial stability are required for approval.

How to Verify Land Title Deeds in Bangladesh?

Method 01

Know and Confirm the Plot Number
  • Identify the accurate plot number of the land.
  • Determine whether the plot number falls under CS (Cadastral Survey), RS (Revisional Settlement), or BS (Bangladesh Survey).
  • Obtain this information from the local land office or record office.
Collect the Khatiyan Number
  • After identifying the plot number, collect the Khatiyan (record of rights) number.
  • You can get this from your union land office or record office.
  • Once you have the Khatiyan number, verify it to check if the land has been officially transferred or mutated.
Retrieve the Deed Number from Mutation or Transfer Records
  • If the Khatiyan shows a mutation or transfer, check under whose name it has been registered.
  • Retrieve the case file or documents related to the mutation. These documents typically include the deed number.
  • Once you have the deed number, apply for a certified copy of the deed.

Where would you apply for it?

If the deed was recorded within the last 5-6 years, you can get a certified copy from the sub-registry office. For earlier deeds, you may need to go to the district registrar's record department.

Method 02

If the first method does not yield accurate information, you may need to perform a deed search. To do this, you will require specific details:
  • Probable Year of the Deed
Identify the approximate year in which the deed might have been registered.
  • Names of the Grantor and Grantee
Gather the names of the original owner (grantor) and the buyer (grantee).
  • Additional Details
Include the names of the fathers of both parties, the plot number, and the area name.

Steps to Recover a Lost Land Deed

If the land deed is lost, quick action is necessary to recover or replace it. Accidents, carelessness, or natural disasters like fire or flooding can result in the loss of deeds. Here's how you can retrieve it: File a General Diary (GD): Visit the local police station and file a General Diary (GD) for the lost deed. Seek Police Assistance: Once the GD is filed, the police will provide a copy of the report with a reference number. This will be necessary for further processes. Obtain Permission for Recovery: After the investigation, the police will issue a permission letter, allowing you to apply for a certified copy of the deed.

Procedure for Certified Copy of a Deed

Under Section 57(1) of the Registration Act, of 1908, anyone can apply for a certified copy of a land deed by paying the required fees. The process involves: If You Have the Original Deed:
  1. Check the last page of the deed, where details of its registration, such as the year, volume, and page number in the registrar's book, are mentioned.
  2. Use this information to request a certified copy from the sub-registry office.
If the Original Deed Is Unavailable:
  1. Search the registry office’s indexes (called "schedule books") created with names of grantors, grantees, or area details.
  2. Submit an application for a search in Form 36 and for a certified copy in Form 37 under the Registration Rules, 2014.

Conclusion

Compliance is more than just a regulatory requirement; it's an investment in long-term success. Compliance with legal and regulatory requirements supports smooth project execution and increases stakeholder trust, from proving land ownership to incorporating innovative and eco-friendly approaches. Successful land development projects in Bangladesh show that strategic planning, strong stakeholder participation, and a dedication to sustainability may help turn obstacles into opportunities. By accepting compliance as a cornerstone of development, developers may help to create a balanced urban landscape that satisfies the needs of a growing population while ensuring a bright future.

Frequently Asked Questions (FAQs)

What is the legal development of real estate in Bangladesh?

The Real Estate Development and Management Act of 2010 is the basic legislative framework for real estate in Bangladesh. It creates regulations for property development, maintenance, and transactions, providing clear guidance to developers, landowners, buyers, and other parties.

What are the documents required for land registration in Bangladesh?

To complete the land registration procedure in Bangladesh, various crucial documents are necessary. These contain the buyer and seller's National ID cards (NIDs), as well as passport-sized pictures. The necessary Khatiyan records (CS, SA, RS, BS, or BRS) must also be submitted. Additionally, a receipt verifying that the land development tax has been paid up to the current year is required. A Waris certificate, as well as Bia documents, are necessary for inherited properties.

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