Homestead, Benami

Transaction, Land
Development Tax,
Real Estate
LECTURE 6
Homestead
Homestead is the dwelling house which can be of one bigha.

Land Reforms Ordinance, s. 2

(e) “homestead” means a dwelling house with out-houses, tanks and enclosures

immediately connected with it covering an area of not more than one standard bigha:

Provided that where such area exceeds one standard bigha, the excess land shall not be

deemed to be homestead;

(n)“rural area” means any area which is not included within a municipality.
The law says a person cannot be evicted or dispossessed from his

homestead in the rural area under any circumstance except by way of

acquisition. Section 6 of the Land Reforms Ordinance

The homestead is exempted from any legal process like attachment,

sale by the officer etc.

If there is any khas land in the rural area the govt. gives preference to

the landless farmers and labourers for building homestead but

maximum five kathas of land can be given.

But the poor people who get such land cannot transfer it but it will be

heritable. Section 7 of the Land Reforms Ordinance.

Benami transaction
Section 5 of the Land Reforms Ordinance says

No person can purchase any immovable property for his own benefit

in the name of another person.

If there is any registered deed of transfer that means that’s a binding

transfer. Subsequently, the previous owner of the land cannot deny

the transfer or cannot say that he did not intend to transfer.

The registered deed will be considered as the evidence of the transfer

When the land is transferred to a person and another person pays for

it, that does not mean the transferee holds the land for the payer,

rather It will be considered that he pays for the benefit of the

transferee. He acquires no interest in the land for sure.

Land Development Tax
 

There shall be levied and collected, for every year commencing on the

first day of Baishakh on all lands a tax to be called land development

tax at the rates specified

Exemption  

The Government or any Officer authorized by it in this behalf may, by

order in writing and subject to such conditions as it or he may specify

therein, exempt from payment of land development tax, any public

graveyard, public cremation grounds or place of public prayer or

religious worship.
The government of Bangladesh exempted peasants from paying rent

of agricultural lands up to 25 bighas.

Real Estate Development and
Management
There is a law namely The Real Estate Development and its

Management Act, 2010.

What is real estate?

It is immovable landed property for the purpose of development,

management and sale and for residential, institutional or commercial

plot or apartment or flat.

What is real estate development and management?

It means development of immovable landed property, control of its

sale, allotment, construction and maintenance with the private or

public-private initiative or with the foreign finance.

Who are the authority?

Like the city corporation or the municipality or the cantonment board

or the national housing authority.

Who is Real estate developer or developer?

It means the registered person under section 5 of this Act to conduct

the real estate business.

What are needed for the registration as a real estate developer?

Trade license

Tax identification number

Vat registration number

Experience (if any) of project and implementation

Certificate of the technical persons of their capacity or qualifications

like the architect, engineer, planners etc.

Membership certificate of the concerned professionals body.

If it is a company then MOA and AOA with the certificate of

incorporation have to be submitted

Membership registration copy of the REHAB or the Land Developers

Association (optional)

The application will be granted within sixty days if satisfied and later

within thirty days registration certificate will be issued for five years

and it has to be renewed afterwards

There are certain legal duties and responsibilities of the developer.

Amongst which project approval is primordial.

Without it no advertising can be given

No sale contract can be made

The developer must show the purchaser approval and ownership

documents of the land.

All these and other documents must be countersigned by the

developer
While developing land the services lines like water, electricity, gas etc.

must not be disrupted.

This law is applicable if a person develops his own land.

While making the contract of sale, it must contain all the terms and

conditions regarding the sale. There should be nothing hidden.

The developer must hand over the possession of the estate within

good time (three months) after the payment of price, execute the

deed and register.

If the developer fails to hand over the estate within the specified time

he must return the money within six months with compensation

according to the contract.

In building the structure, the building construction rules and national

building code must be followed.

No plan can be changed without the approval of the authority.

There are different penalties prescribed in this Act for different

offences.
For example

If any person runs real estate business without registration he will be

punishable for two years of imprisonment or ten lakhs taka fine or

both.

Similar penalty is for beginning the development work without the

approval of the authority.

Half punishment (five lakhs taka fine or if unpaid maximum one year

imprisonment) is for not connecting the utility services.

Three years imprisonment or twenty lakhs taka fine for using low

standard materials in building the structure.

For cheating by the developer two years imprisonment or twenty

lakhs taka fine. Cheating means violation of the contract. Does not

complete the work in time etc.

Two years imprisonment or ten lakhs taka fine if does not hand over

the estate in time.

The company director or officer shall be personally liable for those

offences if done by an incorporated company.

All the offences under this law are compoundable, bailable and non-

cognizable
The offences shall be tried by the first class magistrate or the

metropolitan magistrate. The offences will be tried summarily.

The realized fine will be distributed amongst the victim and the state

equally
End of Lecture 6
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