Many Real Estate Developer Companies in Bangladesh have built on landowners property with authorization.Parties are signing agreements to complete legal requirements.
Many disputes emerge between real estate developers and landowners about rights and duties. Before signing any formal agreement, all parties must know the law regarding their obligations.This article will discuss the rights and responsibilities of land owners and real estate developers under Bangladeshi law.
Bangladeshi Landowners Laws
Bangladeshi Constitution, Contract Act, Real Estate Development and Management Act, Regulation, Specific Relief Act, Arbitration Act, Transfer of Landowners Property Act, Registration Act, and Land Development for Private Residential Projects Rules.
Private Residential Project Land Development Rules, 2004; Partnership-based Infrastructure Development (Flat Construction) on Public Land Rules, 2008; Bangladesh National Building Code, 2006; Trade Organizations Ordinance, 1961; Government Circulars & Notifications, etc.
Explaining Real Estate Law
The Real Estate Development and Management Act, together with other pertinent legislation, largely handles real estate concerns. This Act defines ‘Real Estate’ as Landowners property established for sale and purchase as residential, organizational, commercial plot, apartment flat, organizational, or mixed floor space.
This Act applies only to private or mixed undertakings, such as landowner or developer projects on their own Landowners property, not government efforts. Joint ventures between government and private development businesses are subject to the aforesaid legislation.
Developer Companies Must
Developer companies must include the 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 sales. Landowners and developers cannot start building unless they have design, allocation, and other government clearances.
Real Estate Developer and Landowner Rights and Liabilities
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 documentation
According to the agreement and national legislation, the landowner has the right to receive Landowners property papers from the development company and must supply them to the developer business. The landowner must also provide the development business power of attorney.
The REHAB code of conduct requires a joint agreement between the landowner and the development business to guarantee monthly rental reimbursement in the event of a delay.
According to the contract, the landowner must provide the developer company possession for development. After developing the real estate, the corporation must give the landowner custody of the assigned share.
If the landowner intentionally delays Landowners property possession or cancels the Power of Attorney without 30 days’ notice, they may face penalties up to BDT 10 lacs and/or two years in prison under the Real Estate Development and Management Act of their country. However, if the development business delays possession, the landowner is entitled to compensation under the agreement and regulations 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 allotted Landowners property, etc.
If there is no other equally effective remedy under the law of this nation, the landowner may submit a writ under the Constitution.
Developer Company Rights and Liabilities
Company formation, registration, and membership
First and foremost, all developer companies in Bangladesh must be incorporated and registered with the relevant government authorities, such as RJSC, to operate.
Violators face two years in prison or a ten lacs BDT fine. The same penalties applies if a development business starts a real estate project without proper clearance. Developer businesses must join REHAB and other essential agencies to be legally viable 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 Landowners property development, the landowner must give all essential paperwork to the developer.
The development business must also provide the buyer the Landowners property documents, such as the sale deed and registration, within three months after payment.
If the land owner did not execute a power of attorney in favor of the developer company to execute the sale deed and complete registration in favor of the purchaser of the developer’s part of the Landowners property, the landowner must execute the deed within 15 days of receiving the notice in writing.
The development business may execute the sale deed and register as if it owns the Landowners property if the landowner does not comply with the notification.
Repair and maintenance risk
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 for at least one year following the transfer.
The landowner must give the developer corporation custody of the land for estate development. The developer company must transfer possession of allotted real estate, such as apartments or plots, to the landowner/s within agreed timeframes, as per the deed of agreement and the Real Estate Development and Management Act of the country.
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, unusually high building material prices, delay in getting utility connection from the appropriate authority, or other force majeure.
Developer business punishment for specific actions
A development corporation that mortgages real estate without the buyer’s agreement faces a one-year jail sentence or a BDT five lakh fine.
If the real estate company uses substandard materials or the wrong quality and quantity of materials, builds outside the approved design, or sells the Landowners property to the owner without his knowledge for illicit gain, the developer company will be imprisoned for three years or fined twenty lakhs or both.
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 Landowners 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.
Right to sue landowner
In accordance with the prevailing laws of this jurisdiction, it is within the prerogative of the developer company, acting as a legal entity, to initiate legal proceedings against the landowner in the event that it finds itself aggrieved by any contentious issues pertaining to real estate.