Verifying the current Khatian (record of rights) at the Directorate of Land Records and Surveys (DLRS)
Agency: Directorate of Land Records and Surveys (DLRS)
Various departments of two Ministries manage the core functions of land administration:
- The Ministry of Land (MoL): land-related activities including survey, the collection of land development tax, arbitration process. The following agencies are under the Ministry of Land
- Directorate of Land Records and Surveys (DLRS): Conducts cadastral surveys, from which it produces mouza (revenue village) maps showing individual plots of land and khatian (individual land record certificates)
- AC (Land) Office: Manages the mutated Khatian
- Tehsil office: the local administrative division that has the function of record keeping
- The Ministry of Law, Justice and Parliamentary Affairs (MLJP): Records land mutation and transfers
- The Department of Land Registration (DLR): Records land mutations arising through sale, inheritance or other forms of transfer, reports changes to the Ministry of Land, and collects the immovable property transfer tax (IPTT)
- Sub-registrar’s office: the local administrative division that has the function of registration.
For a property transfer, first, the company will obtain a proof of land ownership titles (called Porcha or Khatian) at the Directorate of Land Records and Surveys (DLRS). It contains the names of owners, percentages of ownership of each person, the plot number, the type of property (residential, commercial), and its size.
However, the Khatian requested at the DLRS is not conclusive evidence of ownership, and merely provide a basis of possession at the recording time.
Time ang cost: 20 days, no charge
Conduct the first mutation and obtain an updated record of rights (Khatian) at the Assistant Commissioner of Lands (AC Land) – Tahsil
Agency: Assistant Commissioner of Lands (AC Land) – Tahsil
The current land system in Bangladesh produces multiple khatians.The khatian is administered separately by the Directorate of Land Records and Surveys (DLRS), the DC Record Room, the Assistant Commissioner of Lands and the Tahsil Office. The khatian managed by DLRS may differ from the mutated khatian managed by the AC (Land) Office. In that case, If the name of the transferor is not found in the latest Khatian or his/her name is not mutated, the Sub Registrar will refuse to register the transfer deed. Therefore, it is mandatory to mutate the name of the transferor in the latest Khatian.
The mutation is the process for updating the ownership and obtain a certificate of the land record. This certificate is one of the documents needed to register the property transfer. Typically, properties have missing information in the records, or the seller legal owner may not be correct. The interest parties will always verify with AC Land the history of ownership to see if the Khatian information is correctly corresponding to the actual land. This situation is common because, in at least 50% of cases, the records are not correct. Sometimes, due to problems caused at the AC Land Office, such as incorrectly recording names and other details of the land.
Time and cost: 53 days, BDT 1,170 (Application fee (Court fee) 20 Taka; Notice issue fee 50 Taka; Record correction fee 1000 Taka; Khatian fee 100 Taka)
Inspection of the property for updating the record of rights (Khatian) by the Assistant Commissioner of Lands (AC Land) – Tahsil
Agency: Assistant Commissioner of Lands (AC Land) – Tahsil
The Assistant Commissioner of Lands (Tahsil) will carry a physical inspection to provide the updated record of rights (Khatian). Officials visit the plot to check if there are no irregularities, such as informal buildings, and if the size of the land plot is correct, etc.
Time and cost: 53 days, Included in Procedure 2
Obtain the non-encumbrance certificate from the relevant Sub-registry office
Agency: Land Registration Directorate – Sub-registry office
The buyer checks the legal status of the land (mortgaged or leased or ownership) at the relevant Sub-registry. From January 2012 both Sub-registry and Land Revenue Office provide non-encumbrance certificates. Sometimes a land report is required. A land report gives an idea about the current situation and ownership of the land that may include the chain of ownership, land tax, land record, registry status etc. A non-encumbrance certificate is used in property transactions as evidence of free title/ownership.
Time and cost: 8 days, BDT 150
A lawyer or a deed writer draft the deed transfer
Agency: Lawyer
In most of the cases, a lawyer or a deed writer draft the transfer deed that should be signed by the interested partied.
Time and cost: 1 day, BDT 6,000 (Lawyer fees)
Pay stamp duty, capital gains tax, registration fee and other taxes at designated bank
Agency: Designated Bank
The parties should pay all registration fees at the designated commercial bank.
Time and cost: 1 day, BDT 511,365.93 (3% of the property value (stamp duties) + 2% of property value (registration fees) + 2% of property value (local government fee) + BDT 100 (endorsement fee of 100) + BDT 240 (mandatory copy); Per methodology, VAT and source tax (capital gains) are not recorded.)
Apply for registration at the relevant Sub-registry
Agency: Land Registration Directorate – Sub-registry office
The buyer applies for registration at the Sub-registry office, presenting the following documents:
- Records to prove land ownership – Porcha or Khatian – (obtained in procedure 1)
- The mutation proof – mutated Khatian (obtained in procedure 2)
- Certificate of non-encumbrance (obtained in procedure 4)
- Transfer deed (obtained in procedure 5)
- Proof of payment of fees at a bank (Obtained in procedure 6)
A certified registration document is obtained within a week for the buyer’s record. The original sale deed/certificate requires about 6 months to be obtained.
Time and cost: 180 days, Already paid in Procedure 6
Conduct second mutation to change the ownership at the Assistant Commissioner of Lands (AC Land) – Tahsil
Agency: Assistant Commissioner of Lands (AC Land) – Tahsil
The change of ownership must be registered at the Assistant Commissioner of Lands (AC Land). The property is recorded under the name of the new owner, who is responsible for paying the land taxes from the day it is transferred.
The purpose of the 1st mutation (procedure 1) is to update the records under the seller’s name. The purpose of the 2nd mutation (procedure 8) is to update the records under the buyer’s name.
Time and cost: 53 days, BDT 1,170 (Application fee (Court fee) 20 Taka; Notice issue fee 50 Taka; Record correction fee 1000 Taka; Khatian fee 100 Taka)
