Bangladesh scraps approval requirement for transferring plots, flats under housing schemes

The housing ministry will collect non-tax revenue each time ownership is transferred

The interim government has removed the requirement for buyers to seek official permission when selling, gifting or mortgaging plots and flats developed by agencies under the Ministry of Housing and Public Works.

In a notification issued on Nov 10, the Ministry of Housing and Public Works said it had revised long-standing rules governing properties built or allocated through its agencies.

Under the new guidelines, listed residential plots and flats may now be leased or transferred without prior approval from the authorities. However, permission will still be required in several cases, including changes to conditions attached to an allotment, alterations to the combined area of multiple plots or flats held by an individual, and any modification to the designated use category of a plot or flat, whether fully or partially.

The government has also set new charges for transfers. For land transactions that include a flat or building, a fee equivalent to 2 percent of the deed value must be deposited in favour of the relevant authority at the sub-registrar’s office, in addition to the standard registration fee. For transfers involving only plots or land, the fee will be 5 percent.

The same rates will apply each time ownership changes hands, with the amounts collected as non-tax revenue for the ministry.