Real Estate & Construction Law in Bangladesh – Rules & Regulations & Everything you need to know
Tahmidur Rahman, Senior Associate, TR Barristers in Bangladesh
Table of Contents
Find the subsections below, If you want to jump through specific sections instead of reading the whole article.
This post in will explain in details the Real Estate & Construction Law in Bangladesh | Law of Construction Matters | A complete overview of Real Estate in Bangladesh | Everything about property law that you need to know and be aware of with diagrams and infographics.
Real Estate Law in Bangladesh
At first let’s break down what is real estate Bangladesh before diving down towards Real Estate & Construction Law in Bangladesh . It is important to understand that Real Estate is not the same thing as personal property, and should not be confused. Personal assets include intangible assets such as investments, as well as tangible assets such as furniture and fixtures such as a dishwasher. Even renters may also claim parts of a home as personal property, provided that you have purchased and installed the property with the permission of the lessor.
What is Real Estate?
Real estate is a property composed of land and its houses, as well as the land’s natural resources, including uncultivated flora and fauna, farmed crops and livestock, soil, and any other mineral deposits.
Real Estate in Bangladesh
Real estate is both a tangible asset and an immovable form. Definitions of real property include ground, houses and other facilities, as well as the rights to use and enjoy the land and all its amenities. Renters and leaseholders may be entitled to possess land or structures that are considered part of their house, but these rights are not, strictly speaking, considered ownership. Hence:
- Real estate is real, that is, physical, land-based property and everything on it, including houses, flora and fauna and natural resources.
- Immovable properties have three basic categories: residential, commercial and industrial.
- Residential real estate is less costly and more viable for individuals when it comes to finance, whereas commercial real estate is more profitable and secure.
- As an investment, real estate offers income and capital appreciation.
Jurisdiction of Real Estate Law in Bangladesh
Registration Requirements for Real Estate Developers in Bangladesh
If someone wants to enter the real estate market in Bangladesh for commercial purposes, the act specifies that he or she will have to submit the following documentation for registration with the agency concerned.
- Trade License
- Tax Identification Number (TIN)
- VAT Registration Number
- Credentials of experts in your company
- Memorandum of Association, Article of Association and Certificate of Incorporation
- REHAB Membership Registration Copy
Buying, Selling, Transferring of Real Estate in Bangladesh
Real Estate Development and Management Act 2010 is the authoritative act in regards to Buying, Selling, Transferring of Real Estate in Bangladesh Real Estate Law in Bangladesh. In the act Section 3 explains the registration of buying, selling and transferring process of Real Estate Developers and their due responsibilities. The buyer or seller can not adjust the quoted price as set out in the deal. The sum can, however, be changed later if the parties agree to jointly use better materials for the land. First, in no longer than three months, the owner will sign over the land, registry and principal deed. Additionally, if the property has any difference with respect to size or volume after sale, the price must be changed within three months of the transfer. So keep these things in mind when you buy a property next time in Bangladesh.
All Landowners and Developers / Purchasers will not initiate or carry out construction work on the land project’s construction or development work without receiving design permission from the government’s appropriate authority such as RAJUK, CDA, KDA, RDA, etc.
“TR Barristers in Bangladesh is Considered as one of the leading firms in Property Law and Real Estate Law Firm in Dhaka, Bangladesh”
The Property Contract in Real Estate Law of Bangladesh
Real Estate Law For Developers in Bangladesh
Real Estate Developers have to be committed towards the enhancement and growth of the Real Estate Sector of Bangladesh. If they recognize that for sustainable long term growth of this sector, they must conduct their business with a great proficiency, equality, honesty and ethics. Out of the all the parties in the market, a real estate developer has to deal with clause VI. B of the Memorandum and Articles of Association of the Real Estate Housing Association of Bangladesh incorporated under the companies ACT, 1913 (new 1994) the most. Rules and regulations are much rigorous for the real estate developers. For example, if you want to enter the market for commercial purpose, you will have to produce the following documents as stated above to the concerned authority for registration.
How ‘Tahmidur Rahman & TR Barristers in Bangladesh Associates’ helps the purchaser of any land in Bangladesh:
Tahmidur Rahman- TR Barristers in Bangladesh, Law Firm in Dhaka assists buyers, financiers, shareholders, developers on their land-related matters like property due diligence (domain identification, encumbrance check, ground limit, permissive land usage, building development) related to ownership and occupancy, lease, stamping and registration of papers, zoning and permissible use of lands, essential ambitions.
Legal Services Offered by Firms in Regards to Real Estate in Bangladesh
Drafting, look over & negotiating various property documents.
Legal opinion by vetting all property related documents.
Transaction support for all types of real estate schemes including due diligence and title search.
Arbitration and Litigation relating to property related disputes.
Assist and Advice on issues relating to stamp duty and registration.
Advice on matters relating to land tenures including agricultural land issues
Foreign Direct Investment in real estate.
Drafting and reviewing contract
Negotiating and litigating landlord/tenant disputes by serving Legal Notice.
Our real estate lawyers department has extensive experience in Bangladesh on different types of real estate ventures. Our main specialist areas cover acquisitions and divestments, selling, investments and other real estate and real estate transfers; legal aspects of residential property and landlord issues; landlords’, renters’ and homeowners ‘ privileges; real estate title; resolution of property rights claims; cost-sharing arrangements with investors and shareholders, growth and expansion financing etc.
Team Tahmidur Rahman | TR Barristers in Bangladesh additionally draws on the experience of the Business Law Practice in its practice of Real Estate & Construction Law in Bangladesh . We give guidance on organizing land co-speculation or joint venture project, raising capital, setting up a suitable business vehicle and verified loaning. TRW team assure their client rapidly assemble a multi-disciplinary group of experienced business real estate specialists to address a diverse range of real property needs.
“For a general landlord in Bangladeh, there has to be a legal property contract for any trade. Again it’s a common thing, too. As a homeowner, he or she will obtain for his / her possession a specific portion of the apartment building. But, if the owner wants to auction off his share’s apartments, he will have to enforce an attorney’s power and give the developer the right to sell his share of the house.”
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