Transfer of property in Bangladesh is governed by the Transfer of Property Act 1882. In this act, “transfer of property” means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself, or to himself and one or more other living persons; and “to transfer property” is to perform such act. “Living person” includes a company or associations or body of individuals.
Modes of transfer of property:
There are four modes of transfer of property which are given below—
- Exchange; and
Property is also transferred by way of inheritance and mortgage.
Sale is a transfer of ownership in exchange for a price paid or promised or part paid or promised. A sale is not complete unless the price is determined.
Contract for Sale: When the seller and buyer agree to sell and purchase the property at a later stage, a contract for sale is formed between the seller and buyer. This contract creates a personal obligation between the buyer and seller, the ownership of the property is not transferred by a contract for sale. A contract for sale should be registered with the relevant Sub Registry Office.
A lease of immovable property is a transfer of right to enjoy such property, made for a certain time express or implied or in perpetuity, in consideration of a price paid or promised or of money a share of crops, service or any other thing of value.
When two persons mutually transfer the ownership of one thing for the ownership of another neither thing or both things being money only, the transaction is called an exchange.
Gift is the transfer of certain existing movable property made voluntarily and without consideration by one person called the donor ,to another called the donee and accepted by or on behalf of the donee.
Registration is mandatory
Under the present laws of Bangladesh, the deed by which the property will be transferred is required to be registered with the relevant Sub Registry Office. Non registered document has no legal value and the any party will not be able to enforce his/her right if the deed is not registered.
Record of rights
If the name of the transferor is not found in the latest Khatian or his/her name is not mutated, the Sub Registrar will refuse to register the transfer deed. Therefore it is mandatory to mutate the name of the transferor in the latest Khatian.
Property transfer deed format
Government, by a gazette notification, set a predefined format for transfer of property. The format must be used for any kind of property transfer. A copy of the format has been provided below.
It is important to note that practice of the local Sub Registry Office plays a vital role for registration.
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