In the current market of Bangladesh, a brand-new apartment isn’t always affordable for everyone. So, buying a used flat is common among people. There are numerous advantages, such as affordability, established neighborhoods, etc. However, the legal procedure differs when buying a used flat over a new one. It is essential to navigate the legal aspects of the process to ensure a smooth and secure transaction. This article will review some key legal considerations the buyer should consider before purchasing a used flat.
Engaging A Trusted Real Estate Agent
Engaging a real estate agent is at the top of the list for a reason. The first thing you should do when buying a used flat in Dhaka should be to engage a trusted agent. Engaging a reputed agent will also provide necessary legal assistance if you are not experienced in this sector. Your agent will ensure that all the legal matters are on point. And clearing all the legal matters before the transaction will ensure that you won’t face any legal disputes in the future. To identify a trusted real estate agent, check our guide to finding the best real estate agent in Bangladesh.
Verifying the Ownership and Title Deeds
The title deed is the document that states the ownership of the property. The name on the deed has the right to modify, access, or transfer the ownership of the property. But remember, title deeds can have multiple names in it. For example, an apartment can be owned by multiple persons. In that case, only one owner does not have the right to sell the property without the other owner’s permission. Before buying a used apartment, check if the title deed has the seller’s name. You must also ensure that the property is only owned by the seller and no other party owns any part of the apartment. Otherwise, you might face legal issues in the future. We advise you to verify the authenticity of the title deed by reviewing it with a professional lawyer.
Building Permits and Approvals
Building permits and approval are given by Rajdhani Unnayan Kartripakkha (RAJUK). Before constructing the building, the developer must get approval from RAJUK. This approval is for constructing the building and for the design as well. You must check if the building has construction and design approval from the authorities. If there is no construction permit or the building wasn’t built according to the approved design, RAJUK may decide to take action. The worst-case scenario would be RAJUK taking down the whole building.
No Objection Certificate (NOC)
No Objection Certificate (NOC) assures the property is free from dispute or dues. This certificate is provided by various organizations such as WASA, DESCO, and other relevant authorities. You must obtain the NOC during the legal process to ensure the seller has cleared all dues and disputes. Without having all the necessary NOCs, the seller cannot legally sell the property. Obtaining the NOC ensures that the used flat you are buying is legally sound and free from any potential disputes, the flat is legally ready for transfer ownership, and your investment is safe and sound.
Utility Charges and Outstanding Dues
When purchasing a used flat, reviewing the utility bills and any outstanding dues related to the property is important. If a due is attached to the property, the previous owner must pay the due. You must pay the remaining dues if you purchase the apartment without checking the dues. Or even worse, utility providers will cut your line off.
Sale Agreement and Contract
These documents outline the terms and conditions of the property purchase. Reviewing these documents is crucial because a simple change could completely change the terms and conditions. Focus on the purchase price, closing date, and included or excluded items on the property. Since the sale agreement is one of the most significant documents, hiring a legal professional is suggested to verify that the terms and conditions are according to what you have agreed.
Legal Fees and Taxes
There are some fees and taxes associated with buying a used apartment. It’s better if you know about these beforehand to avoid surprise elements. You can expect taxes and common fees from these areas:
- Stamp Duty: Stamp duty
- Registration Fees
- Transfer Tax
- Value Added Tax
- Legal Fees
- Property Tax
These taxes and common fees depend on the size and location of the apartment. You can learn about the amounts from your lawyer or different government authorities.
A used flat in Dhaka is a good investment option. It is affordable, and at the same time, it gives you a ready-to-move-in residence. You do not need to start from scratch. But the legal side might be a bit overwhelming for first-time buyers. Hiring a real estate agent that provides legal support is the best option to avoid any scams or legal issues in the future. Once you complete the legal side of the deal without any hassle, you are done with the most difficult task and ready to move into your apartment.
Contact Concord Property Solutions to discover the best deals and experience the legal assistance for buying a used flat in Dhaka.
Frequently Asked Questions (FAQ)
Why should I hire a real estate agent when buying a used flat?
An experienced real estate agent provides guidance and expertise throughout the buying process. They also eliminate potential legal risks with professional lawyers to ensure a legally sound transaction.
How does multiple ownership affect the sale process?
If the property has two owners, both owners must agree to sell the apartment and sign the necessary documents. If you buy the apartment without the agreement of both buyers, you might face serious legal issues in the future.
How does building approval affect the purchase of a used flat?
Building approval and permits confirm that the building and flats comply with the regulations. This permit ensures the property’s legality and adherence to safety standards. The authorities may penalize or even bring down the building without this permit.
How do I ensure that the used flat I am buying is free from legal disputes?
Conduct a detailed review of the property’s legal history to ensure that the flat is free from legal disputes. This review might include searches at the local courts and land registry offices. A real estate attorney is recommended to make the process easier.
What happens if I find undisclosed defects or issues after purchasing the apartment?
If there is intentional misinterpretation or fraud by the seller, you may consult with your attorney to understand your legal options. Depending on your legal options, you may be able to negotiate a repair, compensation, or initiate legal proceedings.