Purchasing an apartment in Dhaka is one of the most significant financial investments you will ever make. While factors such as location, price, or amenities factor significantly in your decision, one crucial document often shapes the decision as to whether your investment is secure or risky: the sales agreement.
A sales agreement is a legally binding agreement between the buyer and seller that establishes the terms for the sale of a particular piece of property. The unfortunate reality is that buyers often gloss over many important details that can lead to disputes later, unexpected costs, or even legal issues.
At BestBari, we want to protect and inform property buyers in Dhaka. In this article, we will outline the critical elements to look for in a sales agreement before you sign.
Why the Sales Agreement Matters
The sales agreement is more than a mere formality; it’s the basis for your property purchase. It:
– Establishes the seller’s intention to transfer.
– Protects you from undisclosed liabilities or fraudulent claims.
– Defines the payment details along with the deadlines and responsibilities.
– Serves as proof in a court of law in the event that a dispute arises.
In short, a well-written sales agreement means you can buy with confidence in a process that is straightforward and secure.
Key Things to Look for in a Sales Agreement
1. Accurate Property Details
The agreement must clearly describe the flat you are purchasing, including:
1 Exact location and address.
2 Flat number, floor, and name of the building.
3 Size of the flat (with number of square feet).
4 Parking space (if applicable).
5 Amenities, such as lift, roof, and generator access.
6 Unclear property details are a source of dispute later on.
2. Ownership and Title Verification
The seller must confirm that they have legal title to the property. The agreement must also state that:
1 The seller has the authority to sell the property.
2 The property is not encumbered with any mortgages, loans, or litigation.
3 The necessary approvals, you will want to mention approvals from RAJUK, utility connections, etc. are in place.
4 You always want to ask for the supporting documentation and if possible, have a title search prepared by a lawyer/attorney.
3. Total Price and Payment Terms
The agreement must clearly mention:
- The total purchase price of the flat.
- Advance payment amount (booking money).
- Installment schedule (if applicable).
- Final payment deadline.
It should also outline acceptable payment methods (bank transfer, cheque, etc.) to ensure transparency.
4. Handover Date and Possession Terms
The handover date determines when you will take possession of the flat. Look for:
A set completion and handover date.
Penalties or compensation for a seller’s delay in possession.
Buyer’s responsibilities before and after possession.
In Dhaka, delays in handover are common, so make sure this section is airtight.
5. Specifications and Quality Standards
If you are purchasing an undeveloped property, the agreement should specify:
1 Materials (cement, tiles, fittings).
2 Layout and design.
3 Stipulations about work being completed.
4 This protects you to ensure you are receiving what you are paying for, preventing builders from simply doing the minimum for a profit.
6. Cancellation and Refund Policies
Occasionally, buyers may need to cancel for either personal or financial reasons. The contract should define:
Conditions for the booking amount to be refunded.
Any penalties for cancellation by buyer.
What refunds are owed, if any, should the seller default or fails to deliver.
7. Transfer of Ownership
The sale agreement should outline the procedure for:
1 Completing the sale deed.
2 Registering with the sub-registrar’s office.
3 Transferring utilities (electricity, gas, water).
4 Without explicit ownership transfer conditions, you risk incurring legal problems in spite of payment received in full.
8. Maintenance Charges and Hidden Costs
Lots of buyers in Dhaka are often astonished by additional costs including:
1 Monthly service charges.
2 Fees for connecting utilities.
3 Storage/parking charges.
4 Service charges for the community.
Be sure to note all the costs in writing in the agreement to avoid surprises in the future.
9. Dispute Resolution Clause
A good contract should specify how disputes will be resolved: via arbitration, mediation, or legal action. The inclusion of this clause will avoid drawn-out and costly disputes in court.
10. Signatures and Witnesses
Finally, ensure:
Both the buyer and seller sign each page of the contract.
Two witnesses sign the agreement and are present
That the contract is stamped and registered in accordance with Bangladeshi law.
Red Flags to Watch Out For
1 Unclear or partial property descriptions
2 No mention of remuneration for delays
3 Large upfront payments with limited refund provisions
4 Costs that are hidden and not included in the agreement
5 Sellers unwilling to provide ownership/title documents
If you are encountering any of these red flags, speak with a real estate attorney before proceeding.
Final Thoughts
Purchasing an apartment is a significant achievement for anybody, but if you miss certain nuances of the sales agreement, your investment may be jeopardized. Take the time to read through the contract with carefulness, examine for ownership, and make sure all representations made by the owner appear within the body of the writing.
Here at BestBari, we assist buyers throughout the entire process, from property selection to review of all online agreements, and all the way through completing the sale.
Check out some of our most popular flats for sale in Dhaka, and let’s help you capture your dream apartment in confidence.
