Flat Buyer Rights in Bangladesh: Handover, Refunds, Defects and Remedies in 2026

Flat buyer rights in Bangladesh: what the law guarantees in 2026

Flat buyer rights in Bangladesh rest on a statute that most buyers never read: the Real Estate Development and Management Act 2010. It tells a developer when it may advertise, what it must show you before you pay, how quickly it must register your deed once you have paid in full, what it owes you if handover is late, how long it must repair defects, and what happens to your money if either side cancels. It also makes a series of developer failures criminal offences. Read alongside the Registration Act 1908, the 2011 Rules and the tax rules on transfer, it gives a buyer considerably more leverage than the allotment letter suggests.

This guide sets out those rights as they stand in October 2026: developer registration and project approval, the allotment letter and the registered agreement for sale, handover deadlines and the statutory 15 per cent compensation, refunds, defects and common space, registration costs and the 2025 to 2026 changes, mutation, and the routes to enforce your position through negotiation, arbitration, the civil courts and the magistracy. It closes with a due diligence checklist you can use before you pay the booking money.

Summary: The Real Estate Development and Management Act 2010 requires developers to be registered, to sell only approved projects, to register the buyer's deed within three months of full payment, to refund money with compensation (15 per cent if the contract is silent) when handover fails, and to repair construction defects for at least two years. Breaches can lead to arbitration under section 36, civil claims and magistrate-level prosecution with fines of up to Tk 20 lakh.

Key point: A developer may not advertise or sell a flat before the project is approved and it has authority to execute the transfer deed, and it may not cancel your allotment for late payment without at least 60 days' prior notice by registered post. If it cancels, it must return everything you paid within three months.

At a glance

Swipe or scroll →

Table of Contents

Flat buyer rights in Bangladesh: the legal framework in 2026

The core statute is the Real Estate Development and Management Act 2010 (Act No. 48 of 2010), dated 5 October 2010. Sections 19 to 32, which create the offences and the trial machinery, took effect immediately; the remaining provisions are deemed to have applied from 7 December 2008, when the predecessor ordinance was made.[1] The Act applies to private developers and to public-private joint ventures, but not to projects run entirely by government.[1]

Importantly for individual buyers, the Act is not limited to large companies. A landowner who builds on their own land for sale, or a group of individuals who build flats to sell without being a registered developer, is caught by its provisions so far as they apply.[1] That matters in Dhaka, where a large share of small buildings are developed by landowning families rather than established firms.

The supporting rules and statutes

The Real Estate Development and Management Rules 2011, issued by the Ministry of Housing and Public Works and published in the Bangladesh Gazette on 5 September 2011 (SRO No. 277-Ain/2011), set out the forms and procedure for developer registration, renewal and cancellation, and require every project and layout plan to be approved under the applicable building laws.[2] The Registration Act 1908 governs how your agreement for sale and your sale deed are registered, and the income tax and stamp laws determine what the transfer costs.[3] Our overview of real estate law in Bangladesh places these rules within the wider property system.

Who regulates developers

The Act's regulator is the "authority" for the area. In the four major cities this is the urban development authority: RAJUK in Dhaka, and the development authorities of Chattogram, Khulna and Rajshahi. Where there is no such authority, the city corporation acts; pourashavas and cantonment boards act within their own areas; and the National Housing Authority covers everywhere else.[1] When a dispute requires a regulatory complaint, that is the body to approach.

Developer registration and project approval

The first of the flat buyer rights in Bangladesh is the right to deal only with a lawful seller. Section 5 requires every developer to register with the authority for the area in which it operates, or with the government if it operates nationally. The application must include a trade licence, TIN certificate, VAT registration, evidence of project experience, the qualifications of its architects, engineers and planners, its incorporation documents if it is a company, and any REHAB or Land Developers Association membership.[1]

The authority must examine the application within 60 days and, if it grants it, issue a registration certificate within 30 days of notifying the applicant, on payment of the fee. The certificate is valid for five years and renewable every five years, and the authority must maintain and publish a list of registered developers.[1] Under the 2011 Rules, renewal must be sought 60 days before expiry, and a registration may be cancelled for breach after a 15-day show-cause notice, with the cancellation publicised in a national daily newspaper.[2]

What happens to your project if registration is cancelled

Cancellation does not automatically strand buyers. The 2011 Rules allow a developer whose registration has been cancelled to continue implementing, marketing, transferring and maintaining projects that were approved before the cancellation.[2] That protects buyers already committed to a project, but it also means you should check the developer's standing and the project's own approval, not just a registration number on a brochure.

REHAB membership

The Real Estate and Housing Association of Bangladesh is the developers' trade body. According to its president, as reported in December 2025, around 350,000 families in Dhaka own flats, about 1,500 real estate companies remain outside REHAB membership, and a Ministry of Commerce circular makes REHAB membership mandatory for anyone in the housing business.[9] Membership is not a guarantee of performance, but its absence is a red flag worth investigating.

What the developer must disclose before you pay

Section 6 of the Act imposes disclosure duties that go to the heart of flat buyer rights in Bangladesh. The prospectus must state the developer's registration number, name and address, and the approval number, memo number and date of the plan approved by the authority. The developer may not advertise a project in the media before the authority has approved it and the developer has acquired the power or right to execute transfer deeds, and it may not sell or agree to sell any unit before project approval.[1]

Every developer must show the buyer the authority's approval and the title documents for the land. Associated architectural, structural and building services designs must be countersigned by the developer.[1] Breach is not a technicality: starting work without approval, or advertising or selling an unapproved project, is punishable with up to two years' imprisonment, a fine of up to Tk 10 lakh, or both.[1]

The contents of the prospectus and allotment letter

The prospectus or allotment letter must break down the saleable area with a proper explanation, and the detailed terms of development and sale must be written into the agreement between the parties.[1] The contract or allotment letter must specify the fittings and fixtures to be used, and at allotment the developer must give the buyer a statement of the civic facilities shown in the project's architectural design and layout.[1] Keep every version of these documents; they are the yardstick against which later deviations are measured.

No hidden charges

A developer may not take any money from the buyer beyond what the contract provides. The only exception is a supplementary agreement, signed by both sides, for upgraded materials or fittings proposed later.[1] Until the project has infrastructure and utilities in place and is ready for handover, the developer may not charge interest beyond the instalments themselves.[1] Unexplained "utility", "transfer" or "service" demands should be tested against the contract before they are paid.

The allotment letter, the agreement for sale and the sale deed

A flat purchase in Bangladesh typically passes through three documents. The allotment letter (or booking letter) reserves a specific unit and sets out price and instalments. The agreement for sale, often called a deed of agreement or bainanama, records the full terms. The sale deed (saf kabala) is the instrument that actually transfers title. Confusing these stages is one of the most common causes of lost flat buyer rights in Bangladesh.

Why the agreement for sale must be registered

Section 17A of the Registration Act 1908, inserted in 2004, requires a contract for the sale of any immovable property to be in writing, executed by the parties and registered, notwithstanding anything in any other law.[3] The original text required presentation for registration within 30 days of execution. The Registration (Amendment) Ordinance 2026, issued in early January 2026, extended the period for the deeds covered by sub-section (2) from 30 to 60 days, extended another time limit from four to six months and opened the way to digital e-registration.[3] [4] Check the current text when you sign, and do not let the window lapse.

An unregistered agreement leaves a buyer with a much weaker footing if the developer sells the same unit to someone else, mortgages it, or becomes insolvent. A registered agreement puts the transaction on the public record and supports a later suit for specific performance.

The sale deed and the three-month rule

Section 9 of the Act is the provision buyers most need to know. Once the full price has been paid, the developer must, within three months, hand over possession and complete the execution and registration of the deed in the buyer's favour.[1] If the measured area at handover is larger or smaller than agreed, the price must be adjusted at the contract rate within three months.[1]

Registration of the sale deed is compulsory under section 17 of the Registration Act for a sale of immovable property, and an unregistered document does not affect the property.[3] Until the deed is registered, the buyer has contractual rights but not registered title.

Landowner, developer and buyer: the joint venture structure

Most Dhaka apartment buildings are built under a joint venture agreement between a landowner and a developer, with the finished flats divided between them. Section 10 requires that agreement to be written. It must state the developer's share, include a condition that the landowner will execute a power of attorney enabling the developer to sign and register deeds for its share in favour of its nominated buyers, and fix the start and completion dates for the work.[1]

Getting your deed when the land is not the developer's

Flat buyers in a joint venture building buy from the developer's share, so title runs through the landowner. Section 9 deals with this directly. Where the landowner has given the developer a power of attorney, the developer executes the deed. Where no such power has been given, the landowner must execute the deed in the buyer's favour within 15 days of the developer's written request. If the landowner does not, the Act allows the developer to execute the deed for its share as if it were itself the owner of the land and building.[1]

The Act also polices the landowner's side. A landowner who fails to hand over the land on time, or who cancels a registered power of attorney without at least 30 days' notice, faces up to two years' imprisonment, a fine of up to Tk 10 lakh, or both.[1] Buyers should still read the joint venture agreement and the registered power of attorney before paying, because a landowner-developer dispute is the single most common reason handovers stall. See our analysis of developer and landowner disputes in Bangladesh.

Payment, late instalments and cancellation of allotment

Payments must be made through a bank, in line with the prospectus or allotment letter.[1] Paying in cash, or to an individual officer's account, weakens your evidence and your claim.

If the buyer pays late

The consequences of late payment must be spelled out in the prospectus or allotment letter. Whatever the contract says, the developer may not cancel an allotment for non-payment without at least 60 days' prior notice to the buyer by registered post. A buyer who wants to pay a late instalment may do so with interest at 10 per cent on the overdue amount for the period of delay. If a buyer is late a total of three times, the developer may cancel the allotment.[1]

Where an allotment is cancelled under this procedure, the developer must refund all the money the buyer deposited, in one lump sum by account payee cheque, within three months of the cancellation order.[1] Cancelling without the statutory notice is an offence carrying up to one year's imprisonment, a fine of up to Tk 5 lakh, or both.[1]

If the buyer wants to withdraw

A buyer may also choose to cancel. On a written request, the developer may deduct 10 per cent of the amount paid for incidental costs and must refund the balance within three months, in one payment by cheque or pay order.[1] Allotment letters that purport to forfeit far larger sums should be read against this provision.

Late handover: refunds and the statutory 15 per cent

Delay is the dispute that defines flat buyer rights in Bangladesh, and section 15 is the remedy. If the developer fails to hand over the flat within the time fixed in the contract, it must refund all money paid towards the price, together with the compensation set in the contract, within six months, by account payee cheque.[1]

Where the contract does not set a compensation amount or rate, compensation is fixed at 15 per cent of the total amount paid, and the developer must pay the money and compensation within a maximum of six months in no more than three instalments. Compensation runs until the date the full sum is actually paid.[1]

Extensions by supplementary agreement

Developers often ask buyers to sign an extension. The Act allows the buyer and developer to extend the handover date by a supplementary agreement, but where they do, the buyer is still to be paid compensation under section 15(2).[1] Before signing an extension, record the compensation in writing, set a firm new date and keep the right to a refund if that date is missed.

Choosing between refund and completion

Section 15 is framed as a refund remedy. Many buyers would rather have the flat than their money back, especially when prices have risen. In that case the practical route is to negotiate a revised schedule with compensation, or to sue for specific performance of the registered agreement. The right choice depends on how far the building has progressed, the developer's finances and the strength of the title chain.

Construction quality, defects and common space

Section 11 sets minimum standards for what a buyer receives. Every unit must be adequately lit and ventilated, and before handover it must have connections for water, electricity, gas, sewerage, waste management and fire protection where applicable. If construction defects require repair after handover, the developer must carry out the repairs at its own cost for at least two years from the handover date, and, in accordance with the contract, maintain the building for at least one year after handover.[1]

Utilities

The developer must take effective steps to secure the utility connections promised in the prospectus before handover. It is not liable where a utility provider's own limitations prevent connection, provided it has applied and continues to pursue the connection.[1] Failing to comply with this duty is punishable by a fine of up to Tk 5 lakh, or one year's simple imprisonment in default.[1]

Approved plans and common space

The Act defines common space to include the lift lobby, staircases, lift machine room, generator and substation, caretaker's room, guard room and areas used for common facilities.[1] No facility may be reduced and no common space changed by deviating from the approved plan, and the approved plan may not be changed at all without the authority's approval. At handover the developer must give the buyer copies of the approved architectural design, the structural design and the building services drawings, together with the handover letter, countersigned by the developer.[1]

Building outside the approved plan, or using inferior materials or less material than promised in order to profit unlawfully, is punishable with up to three years' imprisonment, a fine of up to Tk 20 lakh, or both.[1] These are the provisions to invoke when a rooftop is sold off, a parking bay disappears or a generator room becomes another flat.

Owners' associations

Once the developer's maintenance period ends, the building is typically run by an owners' association or flat owners' committee formed under the sale documents. The 2010 Act does not itself set up a detailed apartment-ownership code, so the association's powers, service charges and decision rules depend heavily on what the deed of sale and the building's constitution say. Insist that the common space, the undivided land share and the association arrangements are described precisely in your deed.

Mortgages and double sales

A developer may not sell a buyer a unit it has mortgaged. It may mortgage an allotted unit only with the buyer's consent, and may mortgage a building under construction, wholly or in part, only with the landowner's consent, provided that it releases the unit from the mortgage before executing the transfer deed.[1] Breach is punishable with imprisonment of one year, a fine of up to Tk 5 lakh, or both.[1]

A developer may change an allotted unit only with the buyer's consent.[1] Selling a flat promised under a contract to someone else, without the buyer's knowledge and for unlawful gain, carries up to three years' imprisonment, a fine of up to Tk 20 lakh, or both.[1] A registered agreement for sale and an encumbrance search at the sub-registry office remain the best protection against both risks.

Registration costs, taxes and the 2025 to 2026 changes

The buyer's cost of registering a flat combines a registration fee, stamp duty, local government tax and advance income tax collected at source on the transfer, together with the developer's own VAT and service charges built into the price. In October 2026, a government-appointed committee led by former Land Secretary ASM Saleh Ahmed reported the current rates as a 1 per cent registration fee, 1.5 per cent stamp duty and 3 per cent local government tax in urban areas, and recommended cutting them to 0.75 per cent, 0.75 per cent and 1.5 per cent respectively, with a uniform 1 per cent advance income tax on transfers.[6]

The FY2025-26 budget announced in June 2025 had already halved the withholding tax on property transfers in the main Dhaka categories, from 8 to 4 per cent and from 6 to 3 per cent, and in other municipalities from 4 to 2 per cent.[5] The Finance Act 2026 then provided that capital gains on the transfer of property are no longer treated as a final tax, and introduced a new method for computing the income of developers and landowners in joint development.[14] Rates depend on location, deed value and the buyer's status, so obtain a written cost estimate from your lawyer before the registration date. Our guide to property registration fees in Bangladesh explains the components.

Proof of tax return

Proof of submission of an income tax return is already required to register the sale, lease or transfer of land, buildings or apartments, and also for a bainanama or power of attorney. The 2026-27 budget, presented on 11 June 2026, extended the requirement to the distribution and mutation of land and flats in city corporation, pourashava and cantonment areas.[7] Buyers should have their return acknowledgement ready before the registration date.

After handover: mutation, resale and the occupancy certificate

Registration gives you the deed; mutation updates the land record. Because a flat owner also owns an undivided share of the land beneath the building, the buyer's name should be recorded for that share so that land development tax and future transfers proceed smoothly. Our guide to land mutation in Bangladesh explains the e-mutation process.

No transfer fees on resale

On 12 November 2025 the Ministry of Housing and Public Works directed that real estate developers may not demand or collect money from a buyer or seller for sale approval, transfer approval, mutation or any other pretext when a flat or land already sold or handed over by registered deed is resold or transferred. Violations expose developers to action under the 2010 Act and the 2011 Rules.[8] This is a significant protection for flat buyer rights in Bangladesh on the secondary market.

The occupancy certificate

In RAJUK's area, an occupancy certificate is required after construction is complete and before the building is used, and RAJUK states that it is valid for five years.[10] Ask for it before you take possession. A building without one may have deviated from its approved plan, and that can affect utility connections, loans and resale. For the approval process from the developer's side, see our guide to real estate and construction law in Bangladesh.

Enforcing flat buyer rights in Bangladesh: the remedies

The Act gives buyers four broad routes, which can be used in combination. The right sequence depends on what you want: the flat, your money back with compensation, or a penalty that brings the developer to the table.

Negotiation and statutory arbitration

Section 36 provides that where a dispute arises between a buyer, developer or landowner at any stage of the project, whether about the offences in sections 21 to 30 or a breach of their contract, the parties must first try to settle it among themselves. If that fails through one side's non-cooperation, the other may give notice of its intention to go to an arbitral tribunal under the Arbitration Act 2001. The recipient must jointly constitute the tribunal within 30 days of the notice, and the award binds the parties with no right to object in any court. If the parties fail to constitute the tribunal, either may file a case in the competent court.[1]

Two cautions apply. In 2019 the High Court Division issued a rule asking why section 36 should not be declared unconstitutional, so its finality clause has been contested.[12] And the general Arbitration Act deadlines still bite: in August 2025, in a case involving award-holders and a real estate developer, the High Court Division held that the 60-day period to set aside an award under section 42 cannot be extended by the Limitation Act, and set aside an order that had condoned a 116-day delay.[11]

Civil suits

A buyer with a registered agreement may sue for specific performance to compel execution and registration of the sale deed, or for recovery of money, compensation and declarations. An injunction can preserve the unit while the suit proceeds. Civil remedies are slower than arbitration but allow interim protection that a private tribunal may struggle to enforce.

Criminal complaints under the Act

Offences under the Act are compoundable, bailable and non-cognisable, and are tried summarily by a Magistrate of the First Class or a Metropolitan Magistrate, who may impose any penalty the Act allows.[1] Where a director, owner or officer of a developer company knowingly participates, that person is personally liable. On conviction, the court may order up to 50 per cent of any fine recovered to be paid to the affected landowner or buyer.[1] Because offences are compoundable, a complaint frequently produces a settlement. Fraud outside the Act may also be pursued under the general criminal law.

Regulatory complaint

A complaint to the registering authority can trigger a show-cause notice and, ultimately, cancellation of the developer's registration under the 2011 Rules.[2] This rarely produces money directly but can concentrate the developer's attention. Our real estate disputes practice regularly combines these routes.

Protecting flat buyer rights in Bangladesh: a due diligence checklist

Most disputes are avoidable. The following sequence protects a buyer from the booking stage onwards.

Swipe or scroll →

Independent professional advice is cheap compared with years of litigation. Before you sign, compare the project's approved drawings with the brochure, confirm that the land title chain is clean and ensure that every payment is traceable through a bank. Experts also recommend confirming the developer's registration and track record, checking historical land records and the sub-registry for prior transfers or mortgages, and inspecting the site in person.[13] Our guide to buying an apartment in Dhaka walks through the transaction in more detail.

Penalties at a glance

Criminal sanctions give flat buyer rights in Bangladesh real teeth. The table below summarises the offences most relevant to buyers under the 2010 Act. On a phone, scroll it sideways.

All of these offences are tried by a First Class or Metropolitan Magistrate under the summary procedure, and all are compoundable.[1]

What to watch in 2026 and beyond

Three developments will shape flat buyer rights in Bangladesh over the next year. First, the cost of registration is under active review: the October 2026 committee proposals would cut registration fee, stamp duty and local government tax and move deeds towards market-based valuation.[6] Second, e-registration under the 2026 amendments to the Registration Act should make deed registration faster and more transparent once its rules are in place.[4] Third, the proof-of-return requirement now reaches mutation of flats in urban areas, so buyers need their tax compliance in order before completion.[7]

If handover is late, the developer is demanding unexplained charges, or the deed has not been registered within three months of final payment, the earliest steps matter most: a clear written demand, a section 36 notice where appropriate and a decision on whether you want the flat or your money. To discuss your purchase or dispute, contact TRW or explore our residential property and apartment purchase practice.

Frequently asked questions

Which law protects flat buyers in Bangladesh?

The Real Estate Development and Management Act 2010 is the main statute, supported by the Real Estate Development and Management Rules 2011 and the Registration Act 1908.[1] [2] [3]

How long does a developer have to register my flat after I pay in full?

Three months. Section 9 requires the developer to hand over possession and complete execution and registration of the deed within three months of full payment.[1]

What compensation do I get if handover is late?

The developer must refund all money paid with the compensation set in the contract within six months. If the contract is silent, compensation is 15 per cent of the amount paid, payable within six months in no more than three instalments.[1]

Can a developer cancel my allotment because I paid an instalment late?

Only after at least 60 days' prior notice by registered post. Late instalments can be paid with 10 per cent interest, and the developer may cancel after three late payments. On cancellation, all deposited money must be refunded within three months.[1]

How much can a developer keep if I cancel the booking myself?

Up to 10 per cent of the amount paid for incidental costs. The balance must be refunded within three months in a single payment.[1]

Does the agreement for sale have to be registered?

Yes. Section 17A of the Registration Act 1908 requires a contract for sale of immovable property to be written, signed and registered. The Registration (Amendment) Ordinance 2026 extended the presentation period for these deeds from 30 to 60 days.[3] [4]

How long is the developer responsible for defects?

For at least two years from handover, construction defects must be repaired at the developer's cost, and the developer must maintain the building for at least one year after handover under the contract.[1]

Can the developer change the parking or rooftop after I buy?

No facility may be reduced and no common space altered by deviating from the approved plan, and building outside the approved plan is punishable with up to three years' imprisonment or a Tk 20 lakh fine.[1]

Can a developer charge a fee when I resell my flat?

No. A November 2025 Ministry of Housing and Public Works directive bars developers from collecting sale approval, transfer approval or mutation fees on resale of a flat already transferred by registered deed.[8]

Where do I file a complaint against a developer?

Depending on the remedy, with the registering authority, before a First Class or Metropolitan Magistrate for offences under the Act, through arbitration under section 36, or by civil suit in the competent court.[1] [2]