Buying land in mega cities such as Dhaka or metropolitan cities such as Chattogram has now become more lucrative than ever. The soaring real estate prices has got people frantically searching for land, and those who already own land are taking the next step for extra income- developing the land into livable apartments. There are no taxes or zakat involved in land ownership. Therefore, it is no surprise that so many people vy for a piece of land. It is a safe, lifelong investment that can be passed on to the next generation. If you are looking to buy land for real estate development later on, here is a guideline of the procedure you need to follow.
To truly understand how buying land works, you must understand the ownership rights that come with land. The rightful owner of a land can transfer the property to a new owner wholly or partly. When an owner legally authorizes another individual the right to transfer their property, that authorized individual is known as a power of attorney. This person can simply transfer the property to a new owner on behalf of the original owner, but cannot claim ownership of the land.
The new owner’s title has to be in all public records and other records of right. Hire an expert legal team or a real estate agent so that you can understand the legal implications behind purchasing land.
The Ministry of Land deals with all land administration processes in Bangladesh. It separates records of ownership from records of revenue. Records of ownership include land records, Bangladesh land survey details, maintenance of records, etc. The Land Revenue offices deal with land taxes, registration fees, mutation fees, stamp duty fees, etc. The purchaser of land should physically conduct research and survey before considering payment. Assess the current conditions and ground rate of the land; verify whether it is possessed by someone else. Do check whether the seller has appointed a power of attorney for the transfer of property. The buyer should also assess the legal status of the land (whether it is under mortgage or long-term lease).
As a buyer, you must be aware of whom you are buying the land from. Some background check is necessary on your part, to ensure that there are no discrepancies, and that the seller truly is the legal owner of the land. There are many cases in Bangladesh where a person can possess a piece of land, but actually does not have any ownership rights. When a person does not have ownership rights, they cannot sell property legally. Therefore, it is crucial that the buyer check everything properly. The following documents must be in favor of the seller:
Once you have checked the seller’s end of documents, it is time for the buyer to do their part. These are the documents you should prepare for a smooth transfer of land ownership.
The newly purchased land should be recorded in the latest Bangladesh land surveys when they are conducted in the area. While this is a basic guideline of buying land, it is always best to consult legal and real estate experts to ensure a smooth process. There are certain types of land that have additional requirements. For example, Waqf property requires prior permission of the respective Waqf administrator, and the Deed is executed by a different authority. If the property is leased from RAJUK/CDA, with every transfer of property, a permission from the Ministry of Housing and Public Works is required. Khas land cannot be sold or mortgaged. Land eroded by rivers cannot be mutated easily. So do take care of these issues before buying land. Good luck!