Flat & Apartment Purchase Legal Checklist Bangladesh

Bangladesh's real estate market — particularly in Dhaka and Uttara — has grown dramatically over the past two decades. With this growth has come a significant number of disputes: developers selling flats on land they do not own, buildings constructed without RAJUK approval, buyer agreements weighted entirely in the developer's favour, and titles disputed by the original landowners or heirs.

Legal due diligence before signing any agreement or making any payment is not optional — it is essential self-protection. A property lawyer in Dhaka or Uttara can conduct a full title search and agreement review for a fraction of the financial risk involved in buying blind.

Before anything else, verify that the developer actually owns or has the legal right to develop the land where the project is being built. Request and verify:

• Original deed of purchase — the registered deed by which the developer or landowner acquired the plot.
• Khatian (CS/SA/RS) — the government land records showing registered title. Does the name on the khatian match the developer's or landowner's claim?
• Mutation record — confirm the land is mutated in the current owner's name at the AC Land office.
• Encumbrance certificate — has the land been mortgaged to a bank? This is a critical red flag — if the land is mortgaged, your flat may be seized if the developer defaults on the bank loan.
• No-objection from all co-owners — if the land has multiple owners (common in inherited land), all co-owners must have given their consent to the development.

This step requires a legal professional to examine documents at the Sub-Registrar's office and AC Land office. Do not rely on photocopies provided by the developer — always verify originals.

Any building in Dhaka city or its surrounding planned areas must have approval from RAJUK (Rajdhani Unnayan Kartripakkha) — the planning authority for Dhaka. Verification checklist:

• Building Plan Approval: Obtain the RAJUK-approved building plan (naksha). Verify the number of floors approved matches what is being sold to you. Developers sometimes sell flats on floors not approved by RAJUK.
• Land Use Permission: The land must be zoned for residential use in the RAJUK Detailed Area Plan (DAP).
• Environmental Clearance: For larger projects, environmental clearance from DoE may be required.
• Bangladesh National Building Code (BNBC) Compliance: The building must be designed to comply with safety, structural, and fire safety standards.

Buildings without RAJUK approval are legally at risk of demolition orders. Your flat in an unapproved building cannot be registered and will have no legal title. Always demand to see the original RAJUK approval, not just the developer's verbal assurance.

The developer agreement (often called the "flat purchase agreement" or "apartment booking form") is a legally binding contract. Most standard developer agreements are drafted entirely in the developer's favour. Key issues to review:

• Apartment specification: Is the flat size (in square feet/meter), floor number, facing direction, and finishing specification clearly described?
• Delivery date and penalty: What is the promised handover date? What happens if the developer delays? Is there a meaningful penalty for delay, or is the developer absolved by a vague force majeure clause?
• Price escalation clause: Can the developer unilaterally increase the price? Under what circumstances?
• Termination rights: What are the buyer's rights if the developer fails to complete? Can you cancel and get a full refund — with interest?
• Common areas and facilities: Are the promised amenities (car parking, generator, lift, gym) part of the contractual obligation or merely "subject to availability"?
• Title transfer: When and how will the registered deed be executed in the buyer's name?

Never sign a developer agreement without having a property lawyer review it. Many buyers lose lakhs of taka because of unfair contract terms they did not understand at the time of signing.

Developer agreements typically involve instalments paid over the construction period. Critical payment issues:

• Understand exactly what you are paying at each stage and what construction milestone it corresponds to.
• Ensure receipts (money receipts on company letterhead) are issued for every payment.
• Understand the penalty for late payment — many agreements charge 18–24% per annum on overdue amounts, which can be punitive.
• Understand your right to withhold final payment until you receive vacant possession of the completed flat in the agreed specification.
• Do not make large payments before any construction has begun — the risk of project abandonment is highest at the pre-construction stage.

Keep a complete paper trail of all payments made, all receipts received, and all correspondence with the developer. This documentation will be critical if a dispute later arises.

The Deed of Agreement (Baina Nama) is the formal pre-sale agreement that is registered at the Sub-Registrar's office. This step is often skipped by buyers — a major mistake. Registering a Baina:

• Creates a legal record of your agreement and payment.
• Prevents the developer from selling the same flat to another buyer.
• Gives you the right to seek specific performance (court order compelling completion of the sale) if the developer refuses to hand over the flat.

Under the Registration Act 1908, an agreement for the sale of immovable property above a certain value must be registered to be enforceable in court. An unregistered Baina has very limited legal protection. Your property lawyer should ensure the Baina is properly drafted and registered promptly after you agree to purchase.

Once the flat is complete and ready for handover, the final step is registration of the Sale Deed (Kabala) at the Sub-Registrar's office. This creates your formal registered title. Requirements:

• Pay the required stamp duty and registration fees based on the declared value of the flat.
• The deed must be drafted by a licensed lawyer and signed by both the seller and buyer (or their attorneys).
• Both parties must appear before the Sub-Registrar for registration.
• The deed must describe the flat precisely — apartment number, floor, building name, plot number, and mouza information.
• After registration, keep the original registered deed in a safe place — it is your primary evidence of ownership.

Never accept delivery of a flat without ensuring the registered deed is in your name. Taking possession without a registered deed leaves you legally vulnerable. A property lawyer in Dhaka will handle the entire registration process on your behalf.

After registration, two important post-purchase steps must be completed:

• Mutation (Namjari): Apply to the AC Land office to update the land records in your name. Without mutation, government records will still reflect the developer or original landowner as the registered holder.
• Utility Transfer: Transfer electricity (DESCO/DPDC), gas, and water connections to your name. Some utilities require the registered deed and a no-objection from the previous holder.
• Society Registration: For apartment buildings, the buyers collectively form an apartment owners' association under the applicable laws. This association manages common areas, maintenance, and building services. Ensure your rights as a member are clearly established.

These post-purchase steps are frequently overlooked but are important for establishing complete legal control over your property. Completing them soon after registration protects you from future administrative complications.

RAJUK is Dhaka's urban planning authority. A building without RAJUK-approved plans may face demolition orders and cannot have flats registered as legal property. Always verify RAJUK approval before buying.

It is very risky. If the developer defaults on the bank loan, the bank can seize the land — including your flat. Always check for bank encumbrances and require the developer to obtain a no-objection from the bank before you buy.

It is not legally mandatory but strongly recommended. A property lawyer will verify title, check RAJUK approvals, review the developer agreement, and ensure proper registration — protecting an investment worth lakhs or crores of taka.

A Baina Nama is a pre-sale agreement registered at the Sub-Registrar's office. It protects you from the developer selling the same flat to another buyer and gives you the right to sue for specific performance if they default.

Stamp duty and registration fees are calculated as a percentage of the declared value of the property. Rates vary and are updated periodically. Your lawyer will advise the exact amount before registration.

If your agreement includes a penalty clause for delay, you can enforce it. If not, you may sue for damages in Civil Court or seek specific performance. A well-drafted agreement with a real penalty clause is the best protection.

You can assign your rights under the developer agreement by way of a novation or assignment — but you need the developer's consent. Once the flat is registered in your name, you can sell it through a normal registered deed.

It can be safe if proper due diligence is done: verified land title, RAJUK approval, reputable developer, registered Baina, and phased payment linked to construction milestones. Without these checks, pre-construction purchases carry significant risk.