Real Estate and Construction Law in Bangladesh: 2026 Guide

Real estate and construction law in Bangladesh is not a single permission or document. A viable transaction normally depends on a coherent chain: a seller or landowner with transferable rights, a properly documented deal, the right land-use and development approvals, a buildable design, and contracts that allocate delivery and completion risk. A shortfall in any one link can affect financeability, launch timing, possession or exit.

For buyers, investors, lenders, developers and landowners, the practical priority in 2026 is to verify the project before money is committed or a sales campaign begins. The statutory framework is especially direct for developer-led projects: developer registration, project approval, approved plans, buyer disclosure and documented transfer all matter. Recent attention is also warranted for the 60-day statutory presentation period for registering a contract for sale of immovable property. [1] [3]

Jurisdiction: Bangladesh. Law and official online services checked as of: 19 October 2026. This Insight addresses general Bangladesh private real estate and construction matters. Local authority practice, land classification, project location, financing structure and contract facts can materially change the analysis.

Contents

The Legal Framework: More Than a Title Search

The starting point is to distinguish three connected, but different, questions:

1. Can the proposed transferor transfer the relevant interest? This requires disciplined investigation of title instruments, the latest relevant land record, possession, encumbrances and authority to sign.
2. Can the site be used and developed for the proposed project? This turns on planning and development controls, approved plans and any location-specific requirements.
3. Can the project be marketed, built and handed over on the agreed basis? This engages the Real Estate Development and Management Act, 2010 (the Real Estate Act), construction controls and the parties’ contracts.

The framework is layered. The Transfer of Property Act, 1882 governs core concepts of transfer. The Registration Act, 1908 regulates registrable documentation and presentation. The Real Estate Act places specific obligations on real estate developers and development projects. The Building Construction Act, 1952 controls construction, reconstruction and alterations in its applicable areas. Environmental and utility workstreams may run alongside them. [1] [2] [3] [4]

This division has a commercial consequence: a signed term sheet, an allotment letter or a brochure is not a substitute for a registered conveyance, and a registered transfer alone does not prove that the intended building can lawfully proceed. Deal teams should map dependencies before fixing launch, drawdown or completion dates.

Who Regulates What?

Under the Real Estate Act, a relevant urban development authority is the authority in its jurisdiction; where there is none, the relevant city corporation, municipality or cantonment board may act in its respective jurisdiction. Outside those areas, the National Housing Authority is contemplated as the authority. The Act excludes activities operated wholly under government management, but applies to government-private joint real estate development and management activities. [1]

This does not mean every project follows the same desk, form or sequence. The local authority, the site’s planning status and the project type should be established early. For a Dhaka-area building, for example, the RAJUK electronic construction-permitting system is a useful official procedural reference, but statutory and project-specific requirements remain controlling. [5]

Land Acquisition, Title and Registration

A Contract Is Not the Conveyance

The Transfer of Property Act defines a sale as a transfer of ownership for a price paid, promised, or partly paid and partly promised. It says such a transfer of tangible immovable property can be made only by a registered instrument. It also makes an important distinction: a contract for sale, by itself, does not create an interest in or charge on the property. [2]

That distinction matters in transaction documents. A purchaser’s signed commercial deal may set the route to a sale, but it should not be represented internally or externally as the completed transfer of title. The parties should separately track the agreement, satisfaction of conditions, deed execution, registration and possession.

Bangladesh law also requires a contract for sale of immovable property to be in writing and registered. It must state the time, effective from registration, for execution and registration of the instrument of sale; if it does not, six months is deemed to be the period. [2] The Registration Act separately provides that a contract for sale must be in writing, executed by the parties and registered.

The 2026 Registration Timing Point

The consolidated official text of section 17A of the Registration Act now says a contract for sale must be presented for registration within 60 days from execution. The official footnote records that the Registration (Amendment) Act, 2026 substituted “sixty” for “thirty” and took effect on 1 January 2026. A closing checklist should therefore identify the execution date, control the original instrument and assign responsibility for presentation well before the deadline. [3]

The Act also requires enough property description to identify the asset. For non-testamentary instruments, that includes a description of land or a house, and, where practicable, reference to government maps or surveys. Transfer instruments required to be registered must include the particulars needed to express the parties’ intention, a complete description of the property and the nature of the transaction; the statute also prescribes photograph, signature and thumb-impression formalities. [3]

Title Work Must Connect Documents, Records and Facts

A practical due-diligence review should not stop at a list of deeds. It should reconcile the chain of title with the exact schedule in the proposed deed, current record entries, physical boundaries, possession and the authority of each signatory. It should identify mortgages, charges, pending contractual claims, powers of attorney, co-owner consent issues, litigation searches where appropriate, revenue and tax status, access and encroachment risk.

Two statutory provisions deserve special attention. First, the Transfer of Property Act says immovable property under a subsisting contract for sale cannot be transferred to another person unless the contract is lawfully rescinded; a contrary transfer is void. Second, it says no immovable property may be sold unless the owner’s name, or in an inheritance case the owner’s or predecessor’s name, appears in the latest khatian prepared under the State Acquisition and Tenancy Act, 1950; a sale otherwise is void. The same Act requires the transfer instrument for a sale, gift, mortgage or declaration of heba to be supported by the executant’s affidavit affirming lawful title. [2]

The Ministry of Land’s online mutation service supports applications for ownership change or correction, online forms, fee payment and khatian-related steps. That service is an important administrative workstream after a transaction, but should not be treated as the sole evidence for a title decision. The underlying instruments, statutory requirements and site facts still need to align. [6]

Developer-Led Projects and Apartment Sales

The Real Estate Act provides a direct compliance framework for developers. A developer doing business in a specified area must obtain registration from the relevant authority; one operating throughout Bangladesh must obtain registration from the government. The application materials specified by the Act include a trade licence, TIN certificate, VAT registration number, evidence of relevant technical personnel and qualifications, corporate constitutional documents where applicable, and relevant association membership where applicable. [1]

The authority or government is to verify the application within 60 days. If granted, the registration certificate is for five years and may be renewed every five years. The Act also requires the authority to maintain and publish a list of registered developers. These provisions support a basic early-stage check: confirm the developer’s relevant registration status and its scope before relying on its project materials. [1]

Project Approval Before Marketing or Sale

The Act places meaningful limits on pre-approval sales activity. A developer cannot advertise a project for the sale and purchase of real estate before project approval by the authority and before it has obtained authority or the right to execute transfer deeds. It also cannot sell, or enter into an agreement to sell, to a buyer before project approval. The developer must show a buyer the authority approval and the title documents for the relevant land. [1]

For purchasers and funders, this makes documentary verification prior to booking critical. Request the approval material rather than relying on a rendering, prospectus or oral representation. The Act requires a developer’s prospectus to include its registration number, name and address, and the approval number, memorandum number and date of the authority-approved plan. [1]

The sales contract should set out the detailed conditions for project development and sale. A developer may not take money beyond the contractual terms, save where the parties enter a supplementary agreement after mutually agreeing to improved materials. The prospectus or allotment document must explain the division of saleable area. [1]

Handover, Defects and Common Areas

After full payment, the Act requires the developer to give possession and complete execution and registration of the conveyance within a maximum of three months. If the area differs at handover, the price is to be adjusted at the agreed purchase rate within three months. [1]

The statutory baseline also matters after possession. The developer must, at its own expense, complete repairs necessary because of construction defects for at least two years from handover. Maintenance must be provided for at least one year after handover in accordance with the parties’ contract. The approved plan cannot be departed from to reduce facilities or change common space. [1]

These are not reasons to use a short-form allotment document. A project agreement should express what is being acquired, price and payment mechanics, the approved plan and specifications, target milestones, possession, deed execution, remedies, maintenance, common areas and handover documentation. The statutory floor should be checked against the negotiated allocation of risk.

Planning, Construction and Environmental Gateways

Start Work Only After the Right Sanction

The Building Construction Act states that, in an area to which it applies, no person may construct, reconstruct, add to or alter a building without the previous sanction of an authorised officer. A sanction is subject to imposed terms and conditions and remains valid for three years from the sanction date; after expiry, fresh sanction is required. Normal repairs are treated differently. [4]

The same Act restricts a change of use without previous permission and permits an authorised officer to address use inconsistent with the land-utilisation scheme in a master plan. Construction without sanction, or in breach of sanction conditions, can lead to a show-cause process, an order to stop work, and potentially removal or dismantling directions. [4]

Accordingly, a developer should treat plans, land use and permit conditions as deal-critical rather than downstream construction administration. A lease, acquisition agreement or financing term sheet should not assume that a proposed density, height, use or programme will be approved.

Permit File Discipline

RAJUK’s official ECPS guidance says a construction permit is needed to begin construction. Its published checklist identifies Form 301, the deed, duplicate carbon receipt, power of attorney where applicable, mutation, an indemnity bond, draft publication form and plan copies among the documents required. It notes additional documentation for a building above 10 floors, including special project clearance, structural design and prior clearance certificates from nine organisations. [5]

Requirements vary by location and project. The sensible course is to create a document-control schedule that identifies each approval, its issuing authority, expiry or renewal point, owner, preconditions, submitted version and any condition imposed. The schedule should be maintained through construction and changes in design, not abandoned once an initial approval is issued.

Environmental Workstream

The Department of Environment maintains official online services for site clearance certificates, environmental clearance certificates, renewal, terms-of-reference approval and EIA approval. It also provides certificate-verification facilities. These services make environmental clearance a live diligence item for projects that fall within the applicable regime; the precise route should be checked against the project’s classification, location and current rules. [7]

Avoid assuming that a planning approval answers environmental questions, or that an environmental clearance resolves land-use or building-control matters. They are distinct workstreams. Construction contracts should also make the party responsible for permit conditions, environmental management plans, reporting and the consequences of changed conditions clear.

Structuring a Landowner-Developer Arrangement

A landowner-development deal should begin with an answer to a basic question: is the developer acquiring land, receiving a development right, or delivering a project for a defined share of completed space or proceeds? Documents that blur those alternatives create avoidable signing, registration, sales and financing problems.

For real estate development, the Real Estate Act requires a landowner and developer to enter a written bilateral joint-venture agreement. The agreement must state the developer’s share and include the condition that a power of attorney will be executed to authorise deed execution and registration for the developer’s share in favour of its nominated buyers. It must also state when development or construction will start and finish, and the work must be performed according to the agreement. [1]

Where a developer has obtained land under a power of attorney and proposes to sell its allocated developed real estate, the Act addresses how deed-execution authority should be conferred. If the owner has not conferred that power, the Act provides a process after written request and a 15-day period for the landowner to execute the buyer’s deed, subject to the statutory conditions. [1]

The commercial document set should therefore be consistent across the joint-venture agreement, power of attorney, site possession record, approved plan, allocation schedule, sales documentation and eventual transfer deeds. Each should use the same land description, project allocation and signing authority. Before external marketing, confirm that the structure supports the proposed buyer conveyance path.

Construction Contracts and Delivery Controls

Construction risk is often created by vague scope rather than difficult engineering. The contract suite should identify the party responsible for design, approvals, procurement, site possession, programme, quality control, utilities, testing, insurance, variations, payment certification, defect correction, delay events, suspension, termination and dispute resolution.

The Building Construction Act gives planning compliance real force. A contractor or owner should not treat a building-sanction condition as merely the developer’s issue. Contract documents can require the current approved drawings to be maintained at the project, prohibit unauthorised deviations, and require prompt escalation where a proposed variation affects approval, safety, cost or schedule. [4]

For a lender or purchaser, completion evidence merits equal attention. Define the documents expected at practical completion and at handover: final approved drawings or as-built records where required, testing and commissioning material, utility evidence, defect lists, warranties, maintenance information, insurance records and the agreed transfer package. These measures do not eliminate risk, but they help prevent a dispute about what was promised, built and delivered.

Foreign Investment and Project Vehicles

Foreign participation needs a structure-specific analysis. The Foreign Exchange Regulation Act treats real estate, foreign direct investment and portfolio investment as examples of capital-account transactions within its definition. [8]

Bangladesh Bank’s foreign-investment guidance says that foreign investors may invest in industrial enterprises, subject to reserved sectors, through a local collaboration or a wholly foreign-owned venture. It says Bangladesh Bank permission is not needed to set up such industrial ventures where entrepreneurs use their own funds, while registration with the relevant investment authority may be sought for government facilities and institutional support. The guidance separately sets conditions for issuing shares to non-residents, including the route by which foreign funds are brought in and reporting through an authorised dealer. [9]

That guidance is useful for an industrial-project holding or operating company; it is not a blanket determination that a particular foreign investor may acquire a particular land interest. The proposed land acquisition or lease, corporate vehicle, sector, investment registration, payment route, security package and exit must be examined together. Bangladesh Investment Development Authority provides services for domestic projects and foreign and joint-venture projects, as well as a one-stop-service route; it is an appropriate official starting point for identifying relevant investment-facing processes. [10]

A Practical Project Sequence

The following sequence helps keep legal work aligned with the commercial timetable:

1. Define the asset and transaction. Identify whether the deal concerns land, a completed asset, a future apartment, a development right, a lease or a project company.
2. Verify the land package. Reconcile title, latest khatian, descriptions, possession, access, encumbrances and signing authority. Do not leave schedule verification until deed execution.
3. Map approvals before commitment. Identify the relevant local authority, land-use position, plan approvals, construction sanction, environmental workstream and utility dependencies.
4. Choose the delivery structure. Align the landowner-developer agreement, corporate vehicle, power of attorney and buyer transfer path.
5. Control sales and financing conditions. For developer-led projects, verify registration, project approval and deed-execution authority before marketing, buyer agreements or lender reliance.
6. Register on time. Treat the 60-day contract-for-sale presentation period as a hard transaction-management requirement, not a post-signing administrative task. [3]
7. Manage change. Keep an approvals register and ensure design variations, extensions and construction changes go through the contractual and regulatory controls.
8. Plan the exit at the start. Build the handover, defect, maintenance, deed and records package into the commercial documents and completion plan.

Frequently Asked Questions

How TRW Can Help

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General Information Notice

This publication provides general information on real estate and construction law in Bangladesh as of 19 October 2026. It is not legal advice and does not create a lawyer-client relationship. Legal requirements and authority practice can vary by site, asset, transaction structure and factual record. Obtain advice on the specific documents, approvals and timing before acting.