Construction is a key driver of our GDP growth. This industry has several Real Estate and Developer companies. They agreed with the landowner to let the Real Estate and Developer Company build on it. In 2010, the government passed the Real Estate Development and Management Act to safeguard landowners against developers.
Additionally, recent government circulars require developer businesses to be REHAB-registered, ensuring a certain degree of quality and standard per Bangladeshi developer legislation.
Bangladeshi Real Estate and Developer Laws
Land and any structures or natural resources on it are Real Estate and Developer under the law. Therefore, real estate is not personal assets. Property might be residential or commercial. Bangladesh is seeing greater foreign investment and property development.
It drives the country’s economic development and greatest employment sector. Interest leads to conflict, they say. This applies to the sector. Complex finance agreements are causing difficulties as Real Estate and Developer purchases rise. This highlights the need for skilled real estate attorneys in deals.
With all other relevant legislation, the Real Estate Development and Management Act governs Real Estate and Developer concerns. Selling land and buildings is called ‘real estate’. Section 2(12) of the Real Estate (Development and Management) Act, 2010 defines “real estate” as residential, industrial, commercial, mixed plot, flat, apartment, and other land property for development and sale.
Bangladeshi Real Estate and Developer Laws
The Bangladeshi Constitution;
- The 1872 Contract Act;
- The 2010 Real Estate and Developer and Management Act;
- The 2011 Real Estate Development and Management Regulation;
- 1877 Specific Relief Act;
- 2001 Arbitration Act;
- 1882 Transfer of Property Act;
- 1908 Registration Act;
- Private Residential Project Land Development Rules, 2004;
- 1952 Building Construction Act; 1996 Building Construction Rules;
- 1953 Town Improvement Act;
- 2004 Private Residential Project Land Development Rules;
- Partnership-based Infrastructure Development (Flat Construction) on Public Land Rules, 2008;
- 2006 Bangladesh National Building Code;
- 1961 Trade Organizations Ordinance;
- Government circulars, notifications, etc.
Developer businesses must comply
Developer companies must include registration number, sanction number of the authorized plan with memo numbers, dates of grants, etc. in their published prospectus or public media ads for Real Estate and Developer sales. Landowners and developers cannot start building unless they have design, allocation, and other government clearances. Real Estate and Developer and landowner rights and responsibilities
Under this country’s laws, the parties to the agreement must first know their rights and duties to fulfill all legal requirements without argument or inconvenience. However, if a dispute arises, the contract’s parties—landowner, developer company, etc.—can resolve it mutually or through arbitration, which will bind the parties. However, if no parties are prepared to present and settle their problem in the arbitration tribunal, they may proceed to the learned court.
Landowner rights and responsibilities
Delivery of required documents:
Landowners have the right to acquire property papers from the development firm and must furnish them as per the agreement and national legislation. The landowner must also provide the development business power of attorney.
According to the REHAB code of conduct, the landowner and developer firm must sign a mutual agreement that entitles the landowner to monthly rental reimbursement if the developer company delays.
The developer business must take control of the site for development as per the contract. After developing the real estate, the corporation must give the landowner custody of the assigned share.
If the landowner with malafide intention delays the handover of the property or cancels the Power of attorney executed in the name of developer company without 30 days’ notice, s/he will be punished with a maximum monetary penalty of BDT ten lacs and/or two years in prison. Country’s real estate development and management law. If the development business delays possession, the landowner is entitled to compensation under the agreement and laws of this nation.
Right to sue developer:
If a real estate dispute arises between the landowner and the developer company, the landowner can sue for specific performance of the contract against the developer company for breach of contract, such as continuous delay in land development, possession of the allotted property, etc.If no other equally effective remedy is available under our law, the landowner may submit a writ under the Constitution.
Developer Company rights and responsibilities
Company formation, registration, and membership
All developer businesses must be legally formed and registered with the government. RJSC, etc. to operate in Bangladesh, or face a two-year jail sentence or a ten-lakh BDT fine. The same penalties applies if a development business starts a Real Estate and Developer project without proper clearance. Authority membership is also required for developer businesses. REHAB etc. to be legal in Bangladesh.
Delivery of required documentation
According to the agreement, the developer company must provide all necessary documents to the landowner and purchasers at the time of handover, ensuring other services and benefits like parking, telephone, water, gas, etc. after construction.
For property development, the landowner must give all essential paperwork to the developer. The development business must also provide the buyer the property documents, such as the sale deed and registration, within three months after payment.
The landowner must execute the sale deed and complete registration in favor of the purchaser of the developer’s part of the property within 15 days of the developer company’s written request if no power of attorney was executed. If the landowner does not comply with the notification, the development business may execute the sale deed and register as if it owns the property.
Maintenance and repair liability
If building flaws necessitate repairs after handover, the developer will pay for them for at least two years. The agreement requires each developer to maintain the Real Estate and Developer for at least one year following the transfer.
The landowner must give the developer corporation custody of the land for estate development. Similarly, the development business must transfer the assigned piece of the Real Estate and Developer, such as an apartment, plot of land, etc., to the landowner/s within the timeframe agreed upon in the deed of agreement as per legislation. Country’s real estate development and management law.
However, if the developer company delays handing over possession to the landowner, it must pay rental compensation as per the agreement, except in cases of natural disaster, political turmoil, unusual building material price increases, delay in getting utility connection from the appropriate authority, or other force majeure.
Developer business punishment for specific actions Developer companies that mortgage Real Estate and Developer without buyer authorization risk one year in jail or a BDT five lakh fine.
For illicit gain, if the real estate company uses substandard materials, does not use the proper quality and quantity of materials for construction, builds outside the approved design, or does not sell the Real Estate and Developer to the owner without his knowledge as promised, the developer company will be imprisoned for three years or fined twenty lakhs.
If the developer company intentionally delays development work without paying compensation, refuses to hand over the property, or violates the agreement with the landowner, it will be punished with a BDT twenty lacs fine and/or two years in prison.
If the developer company fails to provide the services or facilities, such as water, gas, electricity, etc., promised in the prospectus during the handover of the portion of the property, such as a flat, it will be liable to a penalty of less than BDT five lakh and imprisonment for less than one year.
Legal right to sue developer and Bangladeshi Real Estate and Developer legislation
In a Real Estate and Developer dispute between the landowner and the developer company, the landowner may sue for specific performance of the contract against the developer company for breach of contract, such as continuous delay in land development, possession of the allotted property, etc.If no other equally effective remedy is available under US law, the landowner may file a Constitutional writ.
Right to sue property owners
The developer firm may sue the landowner if it is the aggrieved party in a Real Estate and Developer dispute under Bangladeshi developer legislation.
The Landowner and Developer usually sign the Joint Venture Agreement initially after lengthy talks. This Agreement sets the Developer and Landlord’s share percentages, timeframe, advance, and delay penalties. The Landowner must sign and execute this Agreement under section 10 of the 2010 Real Estate Development and Management Act. No legislation requires registering this Agreement.
Power of Attorney
Section 10 of the 2010 Real Estate Development and Management Act requires the Landowner to provide the Developer a Power of Attorney. This will allow the Developer to apply to RAJUK/CDA for layout plan approval, execute sale agreements with third-party buyers, and other responsibilities.
Contract Act of 1872 formalities
The landowner-real estate developer contract must conform with section 10 of the Contract Act of 1872, which defines a legitimate contract.
Contract in writing
Parties that may contract under the Contract Act of 1872 and have no fraudulent purpose must agree to transfer land to a real estate developer in writing. Contracts must state terms and conditions. Specify contract penalties for violations.
2010 Real Estate Development and Management Act
The transfer was postponed under section 15 of the 2010 Real Estate Development and Management Act. The landowner is entitled to compensation if the allotted share of the apartment/plot of land is delayed, as stated in the land developer-landowner deal. In a mutually agreed-upon, written contract, the landowner will get rental payments.
Delay by Landowner
According to Section 28 of the same Act, if the Landowner fails to provide the developer control of the property according to the contract, the Landowner may be fined up to Tk. 10 lacs or 2 years in jail. If the Landowner revokes the Developer’s Power of Attorney without 30 days’ notice, he may be fined or imprisoned under Section 29 of Chapter 36 of the Real Estate Development and Management Act of 2010.
Resolution of disputes
Section 36 of The Real Estate Development and Management Act of 2010 requires landowners and developers to try to settle disputes peacefully. However, the 2001 Arbitration Act will resolve the case if this fails.
Bangladeshi Real Estate and Developer rules are quite thorough. It may seem like a lot, but it’s necessary to manage the massive real estate industry and its operations. An apartment buyer, land owner, or developer should review land or real estate paperwork and inspect the property with a lawyer, surveyor, or engineer.
This industry develops underused land and attracts local and international investors, thereby contributing to our GDP. The government should interfere in the market to establish a realistic policy. Dhaka’s unplanned urbanization makes it unsustainable and unmanageable. Unplanned development should be regulated by legislation.