Private equity real estate is an alternative asset class that consists of professionally managed pooled private and public real estate investments. Investing in private equity real estate entails acquiring, financing, and owning (direct or indirect) property or properties through an investment fund.
Private equity real estate should not be confused with an equity real estate investment trust, or equity REIT, which are publicly listed shares that reflect real estate investments and derive most of their revenue from rental income on their real estate holdings.
Main Takeways
Private equity real estate is a professionally managed real estate fund.
Private equity real estate investing, unlike REITs, needs a significant amount of capital and may be limited to high-net-worth or accredited investors.
This type of investment is frequently riskier and more expensive than other types of real estate investment funds, yet returns of 8% to 10% are not uncommon.
Understanding Real Estate Private Equity
Private equity real estate funds enable high-net-worth individuals (HWNIs) and organizations such as endowments and pension funds to invest in real estate equity and debt holdings.
Private equity real estate uses an active management technique to diversify property ownership. General partners (GPs) invest in a wide range of property types in various places, including new development and raw land holdings, total rehabilitation of existing properties, and cash flow infusions into distressed assets.
Private equity real estate investments are frequently pooled and can take the form of limited partnerships (LPs), limited liability corporations (LLCs), S-corps, C-corps, collective investment trusts, private REITs, separate insurance accounts, or other legal structures.
Latest regulation by Bangladesh Securities and Exchange Commission (BSEC)
The Bangladesh Securities and Exchange Commission (BSEC) announced the regulation on June 22, 2015. Previously, there was no regulation in Bangladesh regulating Private Equity and Venture Capital financing. Bangladesh Securities and Exchange Commission (Alternative Investment) Rules, 2015 (the Rules) went into force on June 22, 2015.
The restrictions apply to private equity and venture capital funds managed by a fund manager through a registered trust. The fund manager and trustee must be BSEC-registered.
The fund managers will raise funds from approved investors, which might include institutions, high-net-worth individuals, and overseas fund managers. The funds cannot be generated through a public issue or an initial public offering; they can only be raised through a private placement and, unlike other mutual funds, will not be listed or traded on stock exchanges.
According to the rules, venture capital funds may invest primarily in non-listed equity and equity-linked securities of start-ups with less than two years of operational history, green field companies, or emerging early-stage undertakings primarily engaged in new products, services, technologies, intellectual property rights-based activities, or new business models.
Operational Requirements for Real Estate Private Equity
To become operational, a local fund management business must have at least Tk. 50 million in paid-up capital. A fully-owned subsidiary fund management company must have at least Tk. 150 million in paid up capital, while a partially-owned subsidiary overseas firm must have at least Tk. 100 million in paid up capital.
The applicant firm must have a minimum net worth of 75% of its total paid up capital; however, if a fund manager’s net worth falls below 75% of its total paid up capital at any time, it must raise it to the requisite level during the next accounting year.
The firm’s chief executive officer or chief investment officer, as well as its compliance officer, must each have a relevant academic background and at least seven years of relevant professional experience, and neither the applicant nor any of its directors will be a loan defaulter.
Registation fee and process:
The registration price is one lakh taka, and the annual charge is 50,000 taka.
The fund manager is entitled to an annual fund management fee of up to 4% (four percent) of the fund’s NAV (net asset value) for managing an impact fund, 3% (three percent) of the fund’s NAV for managing a venture capital fund, and 2% (two percent) of the fund’s NAV for managing a private equity fund.
The fund manager may receive up to 20% of a fund’s net yearly earnings. Concerning the criteria for the formation of an alternative investment fund, such fund size will be at least Tk. 100 million, and the sponsor’s subscription will not be less than 10% of the fund, provided that the sponsor will subscribe at least 20% of its entire subscription to the fund prior to the fund’s registration.
The fund management must contribute at least 2% of the fund’s size; however, if the fund manager also acts as the fund’s sponsor, this investment must be made in addition to its contribution as the fund’s sponsor.
The fund manager and its affiliated persons may not own more than 25% of a fund’s units at any time. The sponsor must commit to a continuous investment of at least 2.5% of the fund’s total size. This fund will pay cash dividends to unit holders alone and will be locked in for three years from the date of unit issue.
Particular Considerations
Investing in private equity real estate necessitates a long-term perspective and a considerable upfront cash commitment—more than BDT 10 crores initially, with follow-on investments over time. Investors have little flexibility and liquidity because the capital commitment window often lasts several years.
Private equity real estate lock-up periods can sometimes span a dozen or more years. Furthermore, distributions might be sluggish because they are frequently paid from cash flow rather than outright liquidation—investors do not have the right to demand a liquidation. Furthermore, fund managers often charge a 2-and-20 fee structure, which costs investors 2% of invested assets plus 20% of profits per year.
Private equity real estate is invested in by the following types of investors:
Institutions (pension funds and nonprofit funds) and third parties investing on their behalf, such as asset managers
Accredited private investors
Individuals with a high net worth (HWNIs)
Individual investors are normally required to fund their investments at the time of signing the investment agreement, whereas institutional investors are required to make a capital commitment. This money is then depleted as appropriate investments are made. Nothing can be extracted from the commitment if no contributions are made throughout the investment period indicated in the agreement.
Private equity real estate investing is risky, but it may pay off handsomely.
Returns on Private Equity Real Estate
Despite the lack of flexibility and liquidity, this sort of investment has the potential to offer significant amounts of income as well as considerable price gain. Annual returns for core strategies in the 6% to 8% range and 8% to 10% for core-plus strategies are not unusual.
Value-added or opportunistic tactics can generate significantly better returns. However, private equity real estate is sufficiently hazardous that investors can lose their entire investment if a fund underperforms.
Private equity real estate funds became popular in the 1990s as a mechanism to buy properties as they plummeted in value. Previously, the majority of institutional real estate investing focused on core properties.
Legal Issues and Mitigation strategies in Real Estate Private Equity
Legal Issues
Description
Mitigation Strategies
Land Ownership and Acquisition
Complex land ownership laws, disputes, and the need for thorough due diligence when acquiring land.
Engage experienced legal counsel for land title verification and dispute resolution.
Regulatory Compliance
Navigating the intricate regulatory framework in Bangladesh, including company registration and foreign investment regulations.
Establish a clear compliance protocol and stay updated on regulatory changes.
Taxation and Financial Compliance
Understanding and adhering to income tax, capital gains tax, and value-added tax (VAT) obligations for REPE investments.
Consult with tax experts to ensure accurate financial planning and compliance.
Environmental Regulations
Meeting environmental impact assessment (EIA) requirements and obtaining approvals from the Department of Environment (DoE).
Conduct thorough EIA studies and engage in transparent communication with environmental authorities.
Political and Economic Stability
Mitigating risks associated with political and economic instability in Bangladesh.
Diversify investments, monitor geopolitical developments, and adapt strategies accordingly.
Infrastructure Development
Addressing the need for infrastructure development to support real estate projects.
Collaborate with government initiatives and invest in infrastructure as part of the project plan.
Complying with regulations governing foreign investments in the Bangladeshi real estate sector.
Seek guidance from the Bangladesh Investment Development Authority (BIDA) for foreign investment approvals.
Legal Documentation and Contracts
Ensuring the adequacy and legality of contracts and agreements with project stakeholders.
Engage experienced legal professionals to draft and review contracts thoroughly.
Land Use Zoning and Planning
Adhering to land use zoning laws and urban planning regulations for real estate projects.
Collaborate with local authorities and urban planners to align projects with zoning requirements.
Dispute Resolution
Addressing potential disputes related to land ownership, contracts, or project execution.
Incorporate dispute resolution clauses in contracts and be prepared for alternative dispute resolution methods.
Private equity real estate investment types
The most common private equity real estate investments are office buildings (high-rise, urban, suburban, and garden offices); industrial properties (warehouse, research and development, flexible offices, or industrial space); retail properties, shopping centers (neighborhood, community, and power centers); and multifamily apartments (garden and high-rise).
There are other specialist property investments available, such as senior or student housing, motels, self-storage, medical offices, single-family housing for sale or rent, undeveloped land, manufacturing space, and others.
Our property lawyers have experience dealing with private equity arrangements, joint ventures, limited partnerships, unit trusts, REITs, and other co-investment agreements, as well as the legal and business challenges that come with them.
Whether it is a sale and leaseback, a development project, a workout, an income-producing investment, a portfolio acquisition, a mortgage portfolio transaction, or a trading transaction. The appropriate structure can be designed to your transaction, taking into account considerations such as transfer tax, accounting treatment, local market and currency challenges, and risk allocation.
Our real estate attorneys have helped clients through the complete life cycle of corporate real estate structures, including initial structure selection, tax optimization, vehicle creation, funding, purchase, asset or project management, and exit strategy.
Are you intending to get into real estate scene in Bangladesh or wants to know more about Developer laws in Bangladesh?
Get Your legal issues related to Developer laws in Bangladesh sorted out with the help of Tahmidur Rahman Remura: TRW: The Law Firm in Bangladesh:
The legal team of Tahmidur Rahman, The Law Firm in Bangladesh: TRW, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related in regards to Developer laws in Bangladesh. For queries or legal assistance, please reach us at:
E-mail: info@trfirm.com Phone: +8801847220062 or +8801779127165 or +8801708080817
Procedures To Get Tax Exemption Certificate in Bangladesh
A tax exemption is the reduction or elimination of a person’s obligation to pay a tax that would otherwise be imposed. The tax-exempt status may provide total tax exemption, a reduction in tax rates, or impose tax on only a portion of the item. The application for a tax exemption certificate must be submitted at the start of the income year.
Sample Tax Calculation:
There are two primary methods to reduce your tax liability:
· Forwarding letter regarding documents submission
· TIN Certificate.
· Trade License;
· Business Declaration Letter;
· Statement U/S 108 Submission Copy;
· Bank Statements;
· Latest Income Tax Certificate of the Company;
· Office Rent Agreement;
· Challan of TDS on Office Rent;
· Challans of TDS on Salary;
· Statement of Forecasted Sales;
· Sales Contract;
· Projected AIT Amount Certificate;
· Business Agreement with Foreign Customer;
· Previous Tax Exemption Certificate Copy;
· List of Employees;
· Latest Annual Audit Report Copy; and
· Last Year Actual AIT Amount Certificate
Application: A format prescribed by NBR.
This letter should include the names of the documents that must be submitted along with the documents attached.
Reference:
ITO 1984, Sixth Schedule
Any income derived from the following business of a resident or non-resident Bangladeshi for the period from July 1, 2008 to June 30, 2024, on the condition that the person/entity file an income tax return in accordance with the provisions of Section 75 of the ordinance.
Business Categories that are eligible to get Tax Exemption in Bangladesh:
1. Software Development 2. Software or application customization 3. Nationwide Telecommunication Transmission Network (NTTN) 4. Digital Content Development & management 5.Digital animation development 6. Website development 7. Website services 8. Web listing 9. IT Process outsourcing 10. Website hosting 11. Digital graphics design 12. Digital data entry and processing 13. Digital data analytics 14. Geographic Information Services 15. IT Support test lab services 16. Software test lab services 17. Call center services 18. Overseas medical transcription 19. Search engine optimization services 20 Document conversion, imaging and digital archiving 21 Robotics process outsourcing 22. Cyber Security services 23. Cloud service 24. System Integration 25. e-learning platform 26. e-book publications 27. Mobile application development 28. IT Freelancing
It should be emphasized that in order to be eligible for this exemption, the tax return must be filed on a regular basis. Furthermore, in order to be eligible for these benefits, the company may need to get BASIS membership and a tax exemption certificate from the appropriate tax office on an annual basis.
General tax breaks in Bangladesh
What general tax credits are available in your country/jurisdiction?
Assignees (both resident and non-resident Bangladeshis) can obtain investment tax credits by investing in government-designated areas.
Even if they become tax residents in Bangladesh, expatriates are not eligible for tax credits or investment allowances. In Bangladesh, double taxation treaties do not apply. Income earned or derived from the Bangladesh delegation is taxed. The following is how the investment tax credit is calculated:
A Comprehensive Guide: How to Apply for an Import of Pesticide License
Importing pesticides is a regulated activity that requires careful adherence to governmental guidelines and procedures to ensure the safety of the environment, human health, and agricultural practices. If you are considering importing pesticides for commercial or personal use, obtaining an import of pesticide license is a crucial step in the process.
This article will provide you with a step-by-step guide on how to apply for an import of pesticide license, covering all the necessary details to make the application process smooth and successful.
Understanding the Importance of an Import of Pesticide License
Importing pesticides involves dealing with substances that can have a significant impact on ecosystems, crops, and human health.
As a result, governments implement stringent regulations to ensure that the import and use of pesticides are carried out responsibly and safely. An import of pesticide license is a legal requirement that demonstrates your commitment to complying with these regulations, safeguarding the environment, and protecting consumers.
Step-by-Step Guide: How to Apply for an Import of Pesticide License
Step 1: Gather Required Documents
Before initiating the application process, ensure you have all the necessary documents ready. These documents are essential for verifying your eligibility and the safety of the pesticides you intend to import. The required documents include:
Completed Application Form: Obtain the application form from the Ministry of Agriculture, Department of Agricultural Extension. Fill in all the necessary details accurately and legibly. Incomplete applications are likely to be rejected.
Registration Number of Importing Pesticide: Before applying for an import of pesticide license, ensure that you are registered as an importer. This registration is a prerequisite for obtaining the license.
Brand and Descriptive Names of Pesticide List: Provide a comprehensive list of the brand names and descriptive names of the pesticides you intend to import. This information helps authorities verify the substances you plan to bring into the country.
Ingredients List: Furnish the names of all ingredients present in the pesticides you wish to import. This list is crucial for evaluating the safety and potential impact of the pesticides.
Ingredient Quantity List Document: Detail the quantity of each ingredient contained in the pesticides. This data is essential for assessing the potential risk associated with the imported substances.
Treasury Challan: Pay the prescribed fee as requested by the relevant authority. The treasury challan serves as proof of payment and is required to proceed with your application.
Step 2: Apply In-Person
To initiate the application process, you need to visit the Ministry of Agriculture, Department of Agricultural Extension in person. This step ensures that your application is submitted accurately and allows you to seek clarifications or address any queries in real-time.
Approach the concerned officer at the Ministry of Agriculture, Department of Agricultural Extension. They will provide you with the necessary application form and guide you through the process.
Fill in all the required details in the application form. Ensure that the information provided is accurate and complete.
Attach photocopies of all the required documents mentioned in the “Required Documents” section to your application form.
Submit the completed application form and attached documents to the concerned officer. At this stage, ensure that you have included all the necessary documents to avoid delays in processing.
Step 3: Application Review and Processing
Once you have submitted your application, the concerned authority will review the submitted documents and application form. This review is conducted to ensure that all necessary information and documentation are provided correctly.
The authority will assess the completeness of your application. If any documents are missing or incomplete, your application may be rejected or delayed. Therefore, double-check your application before submission.
If your application is complete and in order, you will receive an acknowledgment receipt. Keep this receipt safe, as it serves as evidence that your application has been received.
The application will then undergo further processing. Updates regarding the status of your application will be communicated to you via SMS on the mobile number you provided in the application form.
Step 4: Application Approval and License Issuance
After the thorough processing of your application, including the evaluation of the pesticides you intend to import, you will be informed of the approval status.
If your application is approved, you will receive a notification. The authority will contact you via phone to provide instructions on the next steps.
Upon notification of approval, you will be required to visit the Ministry of Agriculture, Department of Agricultural Extension office once again.
During your visit, you will be issued the import of pesticide license. This license authorizes you to import the specified pesticides in compliance with the regulations and guidelines set forth by the government.
Step 5: Completion of the Process
The entire process, from submitting the application to receiving the import of pesticide license, can typically be completed within 15 to 20 days, or as per the timeline advised by the respective department authority.
Obtaining an import of pesticide license is a crucial step in ensuring the responsible and safe import of pesticides. This process involves submitting a comprehensive application along with necessary documents and undergoing a thorough evaluation by the relevant authority.
By following the step-by-step guide provided in this article, you can navigate the application process smoothly and contribute to the sustainable and ethical use of pesticides in agriculture and other sectors. Always remember that adherence to regulations and guidelines not only benefits your business but also safeguards the environment and human health for generations to come.
Contact us to get an Import of Pesticide License in Bangladesh:
GLOBAL OFFICES: DHAKA: House 410, ROAD 29, Mohakhali DOHS DUBAI: Rolex Building, L-12 Sheikh Zayed Road LONDON: 1156, St Giles Avenue, 330 High Holborn, London, WC1V 7QH
Bills of exchange and promissory notes are written pledges between two parties that confirm the completion of a financial transaction. Bills of exchange are more commonly employed in foreign trade than promissory notes are in domestic trade.
A negotiable instrument is a written commercial document that contains an order for money to be paid on demand or after a particular period of time. Bills of exchange, promissory notes, and cheques are the three sorts. In some cases, the bill of exchange is used in conjunction with a promissory note. The primary distinction between a Bill of Exchange and a Promissory Note is that the former bears a command to pay money, whilst the latter bears a promise to pay money.
Acceptance is a key distinction between the two business instruments; bills of exchange must be accepted in order to be effective. A promissory note, on the other hand, does not require any type of acceptance. So, when working with these two, one should be aware of their significance and characteristics.
What exactly is a Promissory Note?
A promissory note is a form of negotiable instrument that contains a written promise to pay in full. These are duly signed and stamped by their drawers, stating that they will pay a particular sum of money to the holder on a specific day or on demand. Promissory notes, which are used by debtors to borrow from creditors, may not be accepted by a creditor after they have been drawn.
Hence, they have the following characteristics.
Written promises to repay a debt.
The drawer or promisor must sign.
The payment date is set in stone.
Both the promisor and the promisee agree on a sum of money to be paid.
For settlement, the legal currency of the relevant country is used. It involves the two parties listed below:
Drawer/Maker:
The debtor who promises to pay a certain amount to its creditor.
Drawee:
A creditor who has been promised a certain amount of money on a specific day.
What exactly is a Bill of Exchange?
A bill of exchange, which is a written note legally bonded and duly stamped and signed by its drawer, is also a negotiable tool. It directs that a certain sum of money be paid to the holder of this instrument on demand or within a specified time limit. These are usually payments for products and services that must be accepted by a debtor in order to be valid. It has the features listed below.
It must be properly dated.
Contains a payment order.
The drawer/maker’s signature is required.
A drawee must accept the bill.
The payment order and amount should be specified.
It has to be delivered to the appropriate payee.
It involves the three parties listed below:
Drawer:
The person who receives payment from the issuer of this instrument.
Drawee:
A person who must pay the applicable sum.
Payee: This is the person who gets payment and, in most cases, is the same as the drawer. What is the difference between Promissory Notes and Bills of Exchange? While promissory notes, bills of exchange, and cheques have some similarities, they are separate from one another. Despite the fact that they are financial instruments with a documented pledge to pay.
Comparison Chart
BASIS FOR COMPARISON
BILL OF EXCHANGE
PROMISSORY NOTE
Meaning
Bill of Exchange is an instrument in writing showing the indebtedness of a buyer towards the seller of goods.
A promissory note is a written promise made by the debtor to pay a certain sum of money to the creditor at a future specified date.
Notice is necessary to be given to all the parties involved.
Notice is not necessary to be given to the maker.
There are significant distinctions between bills of exchange and promissory notes, as you are now aware. Here are some of the most noticeable differences:
A bill of exchange is a negotiable instrument produced when the debtor is directed to pay the creditor the outstanding amount within a particular time frame. A promissory note, on the other hand, is a written agreement between the drawer and the drawee in which the drawer pledges to pay a certain amount within a certain time frame.
A Bill of Exchange involves three parties: the drawer, the drawee, and the payee. A promissory note involves two parties: the drawer and the payee/drawee.
A bill of exchange must be accepted by the debtor in order to be considered valid. In the case of a promissory note, the drawee’s acceptance is not required.
If the Bill of Exchange is not followed, a notice is given to all parties involved. In the case of a promissory note, no notice of dishonor is issued to the “maker.”
In the event of a bill of exchange, no asset is kept as security. An asset can be used as collateral for a loan in specific cases, such as with promissory notes.
Bills of exchange and promissory notes are equally as important in business as cheques. These notions, which are critical for commercial transactions and financing, are, nevertheless, rarely emphasized. Bills of exchange are one of the most crucial negotiable documents when a debtor obtains products on credit.
The creditor sends the debtor a bill of exchange, asking him to pay the amount within the time range indicated. The promissory note is similar, but it is issued by the debtor and specifies that the required amount will be paid within a specified time frame. These ideas will help you understand business in a practical way, and you will be able to apply them in your own business or at work.
Bill of Exchange
Promissory Note
Definition
A negotiable instrument issued to order the debtor to pay the creditor a certain sum of money within a specific date or on demand.
A negotiable instrument issued by the debtor with a written promise to pay the creditor a certain amount within a specific date or on demand.
Section
Mentioned in Section 5 of the Negotiable Instruments Act, 1881
Mentioned in Section 4 of the Negotiable Instruments Act, 1881
Issued By
Creditor
Debtor
Parties Involved
Three parties involved i.e a drawer, the drawee and a payee.
Two parties involved i.e a drawer/maker and the payee
Acceptance
Drawee needs to accept the bill of exchange before payment.
No acceptance required from the drawee.
Liability
Liability of drawer is secondary and conditional.
Liability of drawer is primary and absolute.
Dishonouring of instrument
Notice served to all the concerned parties involved in the transaction on dishonouring the instrument.
No notice served to the drawer in case of dishonouring the instrument.
Copies
Bill of exchange can have copies.
The promissory note allows no copies.
Is it Payable to drawer/maker
Yes, the same person can be drawer and payee.
The same person cannot be drawer and payee.
ব্যারিস্টার তাহমিদুর রহমান রিমুরা কর্তৃক চেক ডিসঅনার মামলা সম্পর্কিত আইনী সেবা:
ব্যারিস্টার তাহমিদুর রহমান: সিএলপি একটি সনামধন্য ‘ল’ চেম্বার যেখানে ব্যারিস্টারস এবং আইনজীবীদের মাধ্যমে চেক ডিসঅনারের মামলা সম্পর্কিত সকল প্রকার আইনগত সহায়তা, পরামর্শ প্রদান করে থাকে। কোন প্রশ্ন বা আইনী সহায়তার জন্য আমাদের সাথে যোগাযোগ করুনঃ-
In Bangladesh, mutation is a significant role in land ownership. When you acquire ownership of land or property, you must execute the mutation. It is a crucial piece of evidence supporting the land’s title.
If your name is not on the most recent Khatian or if you update the record through mutation, you will be unable to sell the land. In other words, if the seller’s name is not changed, you will be unable to purchase land.
If you have a property, you should be aware of mutation khatian.
In general, mutation refers to writing the new owner’s name in the Khatian who has acquired ownership through transfer or inheritance.
In other words, it refers to the legal procedure of documenting the name of a new landowner by changing and updating the Khatian in order to pay land development tax.
Separation of holdings
If a Khatian contains the names of numerous owners, the process of separating the portions of an owner by generating a new Khatian is known as. Joma Kharij is addressed in Section 117 of the State Acquisition and Tenancy Act of 1950 (the “SAT Act”).
The Legal Basis for Mutation
Mutation is addressed in Section 143 of the State Acquisition and Tenancy Act 1950, as well as Rules 8, 9, and 23 of the Tenancy Rules 1954-1955. Aside from those, the government has issued other circulars in this regard.
When it is necessary to mutate
If a person acquires land through any legal means, the applicable Khatian must be updated. A mutation is then necessary.
One of the primary goals of the mutation is to notify the government about the most recent change in ownership and to allow the government to collect land tax from the new owner.
Mutation is usually required for the following reasons:
If the landowner dies and his or her heirs wish to update the documents.
If land title is transferred via recorded deed.
If land ownership is dissolved due to alluvion or under SAT Act sections 90, 91, 92, and 93.
If a person obtains ownership of land through a civil court order.
For khas land settlement.
The mutation process
To modify a piece of land, the owner must submit an application to the AC (Land) in the prescribed form. There are several government fees to consider.
Tahmidur Rahman Remura Wahid is a prominent property law firm in Bangladesh that specializes in assisting clients with various legal aspects of property ownership and transfer. With a team of experienced lawyers and legal experts, the firm offers comprehensive services to clients seeking mutation khatian.
Our lawyers expertise in property laws, local regulations, and bureaucratic procedures makes them a reliable partner for individuals and businesses navigating the mutation process.
Step-by-Step Process of Obtaining Mutation Khatian
a. Documentation:
The process begins with the collection and verification of necessary documents, including land deeds, title documents, tax receipts, and identity proofs. The legal team at Tahmidur Rahman Remura Wahid assists clients in ensuring all required documents are in order.
Government officials conduct a site inspection to verify the details provided in the application. This step is crucial to ensure the accuracy of the property’s physical attributes and ownership information.
d. Public Notice:
A public notice is issued to allow for any objections or claims regarding the mutation. This provides an opportunity for interested parties to raise concerns, if any.
e. Objection Resolution:
If objections arise, the legal team at Tahmidur Rahman Remura Wahid assists in resolving disputes and ensuring a fair resolution. This may involve legal negotiations and documentation.
f. Mutation Entry:
Upon resolution of objections, if any, the mutation entry is made in the land records, reflecting the change in ownership or property details. The updated khatian is issued to the property owner.
Benefits of Engaging Tahmidur Rahman Remura Wahid for obtaining mutation khatian in Bangladesh
Partnering with Tahmidur Rahman Remura Wahid offers several benefits throughout the mutation khatian process:
a. Legal Expertise: The firm’s legal experts have an in-depth understanding of property laws and regulations in Bangladesh. This expertise ensures a seamless and legally compliant mutation process.
b. Document Preparation: The firm assists clients in compiling and preparing all necessary documents, reducing the chances of errors or omissions that could lead to delays or rejections.
c. Objection Handling: In case of objections or disputes, the legal team employs effective negotiation and legal strategies to ensure a smooth resolution in favor of the client.
d. Time Efficiency: The experienced legal professionals expedite the mutation process, minimizing unnecessary delays and ensuring timely completion.
e. Peace of Mind: Engaging Tahmidur Rahman Remura Wahid offers clients peace of mind, knowing that their property matters are in the hands of capable legal experts.
The candidate must clearly state in the application form
the applicant’s and transferor’s names and addresses; a detailed description of the land and its surrounding boundaries; the size, type, and identification of the land; information related to all prior Khatians; and the date of such registration. Furthermore, the applicant should include a copy of
Title deed, through deed, copy of Khatian, proof of payment of land development tax, copy of the decree or judgment obtained from the competent court (if applicable), passport size photograph of the applicant, and other supporting documentation should be included with the application. In the case of inheritance, the procedure is slightly different. It is necessary to have a succession certificate.
A mutation proceeding is not a judicial proceeding that determines title to immovable property. It can only be used as proof at best.
In any mutation case, there is a right to appeal the ruling.
Appeal
If a person is dissatisfied with the outcome of a mutation case, he or she may submit an appeal with the collector, and the appeal may be heard by the Commissioner of the Division.
There are also review and correction options.
Change with the appropriate government agency for leasehold property
If your property is rented from a government agency (for example, RAJUK or the National Housing Authority), you may need to update the record kept by that government organization.
If you acquired the lease straight from the government agency, no modification is required with the agency. If you gained the land by a method other than the lease, you must change your name in the agency’s records.
Land mutation and ownership
I have full mutation, thus I must be the owner of the land, right? This was a frequently asked question.
The answers are not so straightforward.
Let’s start with Khatian because we’re modifying it through mutation.
Khatian is not a title document in and of itself. It is proof of present possession. A Khatian does not create or abolish titles. It is simply a record of physical possession at the time of preparation.
Similarly, mutation does not give title. Simple mutation and rent payment do not confer any title on anyone[9].
Mutation, on the other hand, might be valuable evidence if backed by additional evidence. Rent paid after mutation will also serve as evidence.
Rent receipts, while not title documents, are crucial pieces of proof of possession and can be used as collateral evidence of possession because possession usually accompanies title.
Municipal rent receipts are also proof of occupancy following title.
Thus, mutation serves as critical evidence in proving property title. Once you own any land, you should complete your mutation.
A land cannot be sold without mutation.
With effect from July 1, 2005, the government modified the Registration Act of 1908 and the Transfer of Property Act of 1882 in 2004.
As a result of the amendments to both Acts –
If the seller is not the owner of the property through inheritance, the name of the seller or his/her predecessor must be included in the latest Khatian; otherwise, the name of the seller or his/her predecessor must be included in the latest Khatian. As a result, if the seller’s name is not stated or updated in the most recent Khatian, you should not purchase that land. Because you may be unable to register the deed of sale.
FAQ
Answer
What is Mutation Khatian?
Mutation Khatian, also known as Namjari, is a legal document that records changes in ownership of a piece of land in the government’s record. It replaces the existing owner’s name with the new owner’s name.
Why is Mutation Khatian important?
Mutation Khatian is crucial for legal protection of property. Failure to execute mutation can lead to complications in property ownership, land tax payments, property sales, bank loans, and potential fraud or harassment.
How does Mutation Khatian prevent fraud?
Executing Mutation Khatian ensures that the new owner’s name is recorded in the property record, preventing previous owners from making unfair claims to the property.
Is Mutation Khatian required for bank loans?
Yes, Mutation Khatian is a mandatory document for applying for a bank loan or mortgage. Without it, obtaining a loan or building a house is not legally possible.
How do I execute Mutation Khatian?
To execute Mutation Khatian, you need to collect an application form from the Assistant Commissioner (Land) office, provide details about the property, submit required documents (e.g., deed, khatian, receipts), and either apply online or through a lawyer/representative.
What documents are needed for Mutation Khatian?
Required documents include the applicant’s full name and address, registered transfer documents, photocopies of deeds, Bia documents, Parcha or Khatian, payment receipts, distribution deed (if applicable), and photographs.
Can I apply for Mutation Khatian myself?
Yes, you can collect the necessary documents and apply for Mutation Khatian on your own by paying the prescribed fee. Alternatively, you can hire a lawyer or representative to assist you.
How does TRW law firm help?
Tahmidur Rahman Remura Wahid provides legal services for property-related matters, including Mutation Khatian. They can guide you through the process and address any concerns you have.
What happens if I don’t execute Mutation Khatian?
Failure to execute Mutation Khatian can result in difficulties transferring ownership, paying taxes, selling property, or obtaining loans. It may also expose you to potential disputes and fraud.
Why should I seek professional assistance?
Seeking legal expertise, such as from TRW Law firm , can ensure that the Mutation Khatian process is executed accurately and efficiently, minimising errors and complications.
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