Property Law in Bangladesh: A Practical 2026 Guide

Introduction

Key statutes and sources

• Transfer of Property Act, 1882 — generally governs transfer of immovable property and defines transactional categories.
• Registration Act, 1908 — prescribes registration requirements for certain instruments and the framework for sub-registrar offices.
• Land Reform Ordinance and related tenure statutes — address ownership limits, tenancy and land administration in specific contexts.
• Rules, notifications and practice directions issued by the Ministry of Land and relevant land administration authorities.

2026 update

Principles to bear in mind

• Title and ownership are fact-specific: the legal effect of a document depends on its contents, execution, registration and surrounding facts.
• Registration is commonly necessary to perfect and evidence certain rights, but absence of registration does not always determine the underlying dispute; verified legal advice is needed.
• Tax, stamp duty and other fiscal obligations affect the validity and enforceability of documents; ensure compliance before completing a transaction.
• Local practice and custom may affect possession and rights, especially in rural areas; verify local conditions as part of due diligence.

Who should be involved

• A local property lawyer experienced in due diligence and registration.
• A surveyor or land records specialist where boundaries or physical surveys matter.
• A tax adviser for transfer taxes, stamp duty and municipal or national taxes.
• When disputes arise, an advocate with relevant litigation or arbitration experience.

Document checklist: documents commonly required for a transaction

• Original title deeds and prior conveyance documents.
• Certified copies of mutation entries and land records where applicable.
• Tax payment receipts (land tax, municipal tax) for relevant periods.
• No-encumbrance certificates or equivalent searches showing outstanding charges or mortgages.
• Identity documents and corporate authorisations where parties are companies.
• Survey plans, boundary maps and possession history where boundaries or physical site access are relevant.

Due diligence: practical steps

1. Title search: Search the sub-registrar and revenue records to trace title and identify transfers, mortgages and encumbrances.
2. Physical inspection: Verify possession, boundary markers and any occupation by tenants or third parties.
3. Revenue and tax checks: Confirm payment of municipal and land taxes and obtain receipts or certified statements.
4. Check for restrictions: Identify any statutory or administrative restrictions, such as acquisition notices, preservation orders or governmental claims.
5. Corporate authority checks: For corporate sellers or buyers, confirm board resolutions, power of attorney and registration status.

Drafting transactional documents

• Precise identification of parties and their capacity to transact.
• Clear description of the property with reference to title documents, survey plans and register entries.
• Express identification of encumbrances and indemnities where a seller provides warranties.
• Payment terms, escrow arrangements and practical steps for transfer of possession.
• Dispute resolution clauses that specify forums and processes (litigation, mediation, arbitration) and any agreed choice of law or seat.

Registration and stamp duty

• Confirm which documents must be registered and the relevant time limits for presentation at the sub-registrar office.
• Calculate stamp duty using the prevailing valuation metrics or government schedules; confirm rates with the relevant revenue office.
• Retain evidence of payment of stamp duties and registration receipts in original form.

Common categories of dispute and dispute management

• Title disputes arising from conflicting documents or competing claims.
• Boundary or possession disputes where physical boundaries differ from registered plans.
• Tenancy disputes and landlord-tenant claims under tenancy law or local custom.
• Disputes related to mortgages, encumbrances, and priority of charges.

Tenancy and occupancy issues

• Confirming the tenancy status: fixed-term lease, periodic tenancy, or protected tenancy under specific statutes.
• Checking rent records, eviction procedures and notice requirements before initiating possession proceedings.
• Verifying improvements and maintenance responsibilities allocated between owner and occupier in lease documents.

Foreign nationals and foreign investment

Practical timeline for a typical sale (illustrative)

1. Initial negotiations and heads of terms: 1-2 weeks.
2. Due diligence and title searches: 1-4 weeks (or longer if complex).
3. Drafting and negotiation of definitive agreements: 1-3 weeks.
4. Payment of stamp duty and registration: presentation and completion may be from a few days to several weeks after documents are in order.
5. Possession and final handover: arranged following registration and payment completion.

Tax and fiscal considerations

Risk allocation in contracts

• Warranties and representations about title and authority, and the scope and duration of those warranties.
• Indemnities for third-party claims, encumbrances, or regulatory breaches.
• Conditions precedent to closing, including discharge of specified encumbrances and receipt of permits.
• Consequences for breach, including termination rights and liquidated damages where appropriate and enforceable.

Practical checklists for buyers and sellers

For buyers

• Obtain independent title search and verify chain of ownership back to a reliable root of title.
• Confirm there are no outstanding charges, mortgages or government acquisition notices.
• Inspect the property and obtain a survey where boundaries or encroachments are in doubt.
• Confirm planning, zoning and permitted use for intended use of the property.
• Agree clear payment and escrow arrangements and schedule for registration and possession transfer.

For sellers

• Ensure all title documents are available and that any mortgages or liens are identified and can be discharged.
• Provide accurate tax receipts and disclose material facts affecting title or use of the property.
• Prepare clear authorisation documents if the seller is a company or acting through an agent.
• Coordinate with the buyer on registration timing to avoid claims of defective transfer.

When to involve counsel and other advisers

• Complex title histories or competing claims.
• Significant development or financing arrangements.
• Cross-border elements, foreign investment approvals or regulatory filings.
• Potential or ongoing litigation, or urgent possession matters.

Practical dispute-avoidance measures

• Keep contemporaneous written records of negotiations and payments.
• Use conditional closing mechanics to ensure outstanding issues are resolved before transfer.
• Consider escrow arrangements for purchase funds pending registration.
• Agree dispute resolution mechanisms in advance, and specify the procedural steps and timescales for resolving small disputes.

Local variation and customary practice

Practical guide: step-by-step transactional checklist

1. Identify the property and obtain preliminary documents from the counterparty.
2. Commission a title search and revenue checks at the relevant offices.
3. Inspect the site and commission a survey if boundaries or encroachments are possible.
4. Obtain tax receipts and check for unpaid municipal or land taxes.
5. Draft and negotiate the sale or lease agreement and ancillary documents.
6. Calculate and pay stamp duty and prepare the document for registration.
7. Present the document for registration and retain the original registration receipt.
8. Arrange transfer of possession and handover of keys and physical documents.

Five practical cautionary points

1. Do not assume registration office records are error-free: cross-check and obtain certified copies where necessary.
2. Do not rely on an unverified power of attorney—confirm the principal’s capacity and execution formalities.
3. Be cautious about oral assurances regarding boundary lines or access rights; obtain written confirmation or survey evidence.
4. Confirm that any municipal approvals, zoning permissions and permitted uses align with your intended use.
5. Retain originals of critical documents and maintain a secure record of payments and receipts.

Practical resources and contacts

Five practical FAQs

When to seek tailored advice

How TRW Law Firm assists clients (scope of services)

Practical closing checklist

• Confirm the executed and stamped original of the sale deed is produced for registration.
• Check the registration receipt and obtain certified copies of the registered instrument.
• Ensure any mortgage is formally discharged and that the sub-registrar record reflects the change in title.
• Arrange for physical transfer of possession and a schedule for final handover of keys and documents.
• Retain originals of tax and payment receipts for future proof of compliance.

Final caution