How to Buy Land or Property in Bangladesh

In Bangladesh There are several steps to be undertaken when you intend to buy a land, and it can be complicated. And you may be harassed by tout when know nothing about the procedures of buying land, Here we shall provide you with the procedures of buying land.

There are 8 steps you have to undergo to complete the procedure of buying land, these are the following:
Step 1: Verifying of the record of rights from the Land Office.
(also known as Land Revenue Office/LRO)

Step 2: Completing of RS Mutation on property.

Step 3: Obtain inspection for RS Mutation
Costs: included in procedure 2
Time Frame: 60 days (simultaneous with procedures 1 and 2)
Points to Note:
The permission is only mandatory when the property is under the control of either the Ministry of Works

(National Housing Authority) or RAJUK (Dhaka Improvement Trust since 1952 until it was renamed Rajdhani Unnayan Kartripakkh – RAJUK in 1982).
Although the permission is usually always approved, unofficial payments are still paid in order to expedite the process and guarantee approval, which amount to BDT ৳10,000 to ৳15,000.

The buyer also checks that the property is up to date with payments to the Municipality, gas utility service, electricity utility service, and the water utility service to make sure that there is no outstanding dues payable so that the those liabilities do not transfer to him. Each of these checks will cost around BDT ৳625. These are standard steps customary in Bangladesh and not mandatory for registration.

Step 4: Obtain the non-encumbrance certificate from the relevant Sub-registry office
Completion Time Frame: 2-3 days
Completion Costs: BDT ৳500- ৳700
Points to Note:
The buyer checks the legal status of the land (mortgaged or leased or ownership) at the relevant Sub-registry.

Step 5: Prepare deed of transfer and pay stamp duty
Completion Time Frame: 1 day
Completion Costs: 5% of property value (Stamp duty)
Points to Note:
A lawyer may prepare the transfer deed, but it can be prepared by the parties themselves. If a lawyer does it, the fees will be around BDT ৳6,000.
The deed must be prepared in stamped paper that will cost 5% of the property value to get it. This represents the stamp duty.

Step 6: Pay capital gains tax, registration fee, VAT and other taxes at a designated bank
Completion Time Frame: 1 day
Completion Costs: Capital Gains Tax (5%)+ VAT (1.5%) + local government tax (2%) + registration fee (2.5%)
Points to Note:
Stamp Duty = 5%
VAT = 1.5%
(Applicable only for municipal corporation area payable by private housing and flat developers and commercial businesses)
Registration fee = 2.5%
Local Government Tax = 2%
Capital Gains Tax = 5%
(Not applicable in rural areas for agriculture. Applicable to land above
BDT ৳100 000, irrespective of when the transfer was made)
The 2.5% registration fee is payable to the Bank in favour of the sub-registry office and the receipt is to be presented at the moment of applying for registration.

Step 7: Apply for registration at the relevant Sub-registry
Completion Time Frame: 180 days (simultaneous with procedure
Completion Costs: Already paid in Step 6
Points to Note:
The buyer applies for registration at the Municipal Deed Registry Office, presenting the receipts of payment for the registration fees obtained in Step 6.
A certified registration document is obtained within a week for the buyer’s record. The original sale deed/certificate requires about 6 months to be obtained.

Step 8: Register the change in ownership at the Land Revenue Office
Completion Time Frame: 45 – 60 days (simultaneous with procedure 7)
Completion Costs: BDT ৳5,000
Points to Note:
The change of ownership must be registered in the Land Revenue Office. The property is recorded under the name of the new owner, who is responsible for paying the land taxes from the day it is transferred. If you require assistant or further information on how to buy land or property in Bangladesh please contact us.

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