Legal Tips & Red Flags When Buying a Flat in Dhaka
For many families, buying a flat in Dhaka is a long-held goal. It is also one of the largest financial commitments you will ever make, and it demands proper legal due diligence. As Bangladesh’s real estate market continues to grow rapidly, opportunities have increased—but so have risks. While the legal process can be straightforward, a lack of awareness can expose buyers to fraud, ownership disputes, and hidden liabilities. At BestBari, we believe informed buyers make safer decisions. This guide outlines essential legal tips buying flat Dhaka, including key red flags every buyer should identify before committing to a purchase.
Step 1: Verify Ownership Documents
1. Confirming ownership is the first and most important step.
2. You should request the original Title Deed to verify ownership legally.
3. Next, determine if the seller’s name matches the most recent Khatian/Porcha, which is a Record of Rights.
Next, check for any previous disputes or claims connected to the flat.Â
Red flag check: If the seller cannot provide original papers of ownership or the names do not match, I count that as a red flag.
Step 2: Ensure Proper Land Use Approval
1. Not every plot of land in Dhaka is legally suitable for housing construction. Before investing, check the following:Â
2. The land classification on the CS, SA, RS, and BS records.Â
3. If the property has been approved for construction by RAJUK (Rajdhani Unnayan Kartripakkha).Â
4. If the developer constructed the flats according to the approved building plans.Â
5. Red Flag: If the flat is constructed without RAJUK approval, it may be demolished, fined, and/or you may lose your investment.
Check for Encumbrances (Legal Tips Buying Flat Dhaka)
1. An encumbrance certificate guarantees that the flat or land is free of loans, mortgages, or any other liabilities.
2. Request an Encumbrance Certificate from the Sub-Registrar’s Office.
3. Make sure the property is not mortgaged with banks or any financial institutions.
4. Red Flag: If the flat is mortgaged and the seller does not inform you, you could be stuck with their debt.
Step 4: Review the Deed of Agreement
1. When buying from a developer, pay attention to the Deed of Agreement the landowner has with the developer.Â
2. You will want to make sure the developer has the right to build and sell. Be sure to look closely at what is written about the apartment allocation between the Landowner and developer.
 3. Red flag – if there is ambiguous language or no deed, the developer may not have the legal right to sell you the flat.
Step 5: Verify Mutation and Tax Records
1. A mutation certificate changes the property into the current owner’s name with government authorities.
2. Make sure the flat’s mutation history is updated in either the buyer/seller name.
3. Verify the holding tax receipts and ensure payments are up to date.
4.Red Flag:Â Unpaid holding taxes or not changing the property’s mutation history may lead to ownership disputes in the future.
Step 6: Confirm Utility Connections
Issues with utility connections are prevalent in many flats in Dhaka. Before you buy the flat, make sure the apartment has:
True electricity (DESCO/DPDC) and gas (Titas Gas) connections
Registered WASA water supply
Approved lift parking and generator use
Red Flags: You may have unauthorized or shared illegal utility connections; the utilities can turn them off, and you’d be stuck.
Step 7: Register the Sale Deed Properly
Once all documentation has been checked, the final process is registering the Sale Deed. Make sure it is signed in the presence of the Sub-Registrar, including the required stamp duty and registration fees.
Your next step will be to get your certified copy to keep for your records.
Once you have registered the deed, you will then apply for mutation in your name.
Red Flag: If the seller is suggesting not to register it to “save transaction costs,” walk away – unregistered property can not legally be claimed as yours.
Common Red Flags to Watch Out For
1. Prices that are unusually low – If it seems too good to be true, it probably is.
2. Developer’s verbal promises – Always ask for something in writing.
3. No approved floor plan – Illegal construction is common in Dhaka.
4.Ongoing disputes or court cases – Ask your lawyer to check for litigation.
5.Pressure to pay quickly – Scammers usually will rush you to pay before making sure that the documents are correct.
Legal Tips Buying Flat Dhaka for Safe Transactions
1 Make sure to always engage a real estate lawyer to scrutinize all documents.
2 Obtain a non-encumbrance certificate to check that there are no loans registered against the property.
3 Go to the Sub-Registrar Bank to cross-check property records.
4 If you’re buying the property from a developer, check their reputation and previous projects.
5 Make sure payments go through the bank and avoid cash transactions.
FAQs About legal tips buying flat Dhaka
The most important legal tips buying flat Dhaka include verifying land ownership, checking the chain of title, confirming RAJUK approvals, and ensuring the property is free from disputes or bank mortgages before signing any agreement.
Legal tips buying flat Dhaka help buyers avoid fraud by identifying fake documents, unregistered developers, disputed land, and illegal constructions through proper document verification and legal review.
Key documents include the title deed, mutation certificate, approved building plan, land use clearance, developer agreement, and completion certificate, all of which are essential under legal tips buying flat Dhaka.
Yes. Hiring a lawyer is strongly recommended under legal tips buying flat Dhaka to conduct due diligence, verify documents, draft agreements, and protect buyers from legal and financial risks.
BestBari is a real estate platform that helps home buyers in Bangladesh find verified property listings, expert guidance, and essential resources—including legal tips buying flat Dhaka—to make informed and secure property purchase decisions.
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