How to transfer property/land
Transfer of Property in Bangladesh
The transfer of property in Bangladesh is a legal process governed by the Transfer of Property Act of 1882. This act defines the various modes of property transfer, outlining the rights and obligations of the parties involved. Understanding the nuances of property transfer is crucial for individuals and businesses engaged in real estate transactions. This article, prepared by Dewey Leboeuf law firm in Bangladesh, aims to provide a comprehensive guide to the transfer of property, covering key concepts, modes of transfer, mandatory registrations, and essential procedures.
In the Transfer of Property Act, “transfer of property” refers to an act by which a living person conveys property, either presently or in the future, to one or more living persons, to himself, or to himself and others. This definition includes not only individuals but also companies, associations, or bodies of individuals. The act of transferring property involves a set of legal processes and documentation to ensure the lawful exchange of ownership.
Modes of Transfer of Property
Sale is a fundamental mode of property transfer involving the exchange of ownership for a price paid, promised, or partially paid. The completion of a sale requires the determination of the price. A contract for sale precedes the actual sale, creating a personal obligation between the buyer and seller. This contract should be registered with the relevant Sub Registry Office to establish legal validity.
Lease refers to the transfer of the right to enjoy immovable property for a specified time, either express or implied, or in perpetuity. The consideration for a lease can be in the form of a price, money, a share of crops, services, or any other valuable consideration. Lease agreements need to be carefully drafted to define the terms and conditions of property use during the lease period.
Exchange occurs when two parties mutually transfer ownership of one thing for the ownership of another. This exchange doesn’t necessarily involve money and can be a barter-like transaction. Both parties must agree to the exchange, and the legal implications should be documented in a valid deed.
Gift is the voluntary transfer of existing movable property without consideration. In a gift transaction, one person (donor) transfers property to another (donee) who accepts it willingly. While no monetary consideration is involved, the gift deed must be registered to confer legal validity.
5. Inheritance and Mortgage
Apart from the primary modes mentioned above, property can also be transferred through inheritance or mortgage. Inheritance involves the transfer of property upon the death of the owner to the legal heirs. Mortgage, on the other hand, involves using the property as collateral for a loan.
In Bangladesh, property transfer deeds must be registered with the relevant Sub Registry Office to have legal validity. Non-registered documents hold no legal value, and parties cannot enforce their rights based on unregistered deeds. Registration ensures transparency and authenticity in property transactions.
Record of Rights
Before registering a property transfer deed, the name of the transferor must be found in the latest Khatian (record of rights). If the name is not mutated, the Sub Registrar will refuse to register the deed. Mutating the name in the latest Khatian is, therefore, mandatory for successful property registration.
Property Transfer Deed Format
The government has set a predefined format for property transfer through a gazette notification. This format must be strictly adhered to for any property transfer. Local Sub Registry Offices play a vital role in the registration process, and practices may vary.
Navigating the transfer of property in Bangladesh involves a thorough understanding of legal processes, documentation requirements, and compliance with relevant regulations. Individuals and businesses are encouraged to seek legal advice from experts to ensure a smooth and lawful property transfer process. Dewey Leboeuf law firm in Bangladesh stands ready to assist clients in navigating the complexities of property transactions, providing comprehensive legal support for successful outcomes.