Rajuk plot ownership transfer to be lot easier

Infograph: TBS

Highlights:

• Government removes lessor approval for 99-year lease transfers
• Aims to end harassment, bribes in lease-related processes
• Private developers barred from charging for transfer approvals
• Approval still needed for plot changes, masterplan modifications
• Fixed fees to replace bribes, collected via sub-registry
• Inherited properties will face simplified, less corrupt mutation process

The government has decided to end the long-standing requirement for lessors' approval when selling, donating, transferring, or mortgaging plots and flats leased from state agencies for 99 years, aiming to spare leaseholders from bureaucratic harassment and costly bribes.

It has also decided to take measures to stop the harassment and extra charges private developers collect from buyers in the name of granting approval when selling land or flats.

Necessary amendments to the relevant laws and regulations will be made to implement these changes, according to ministry officials. The decision was taken at a recent inter-ministerial meeting chaired by Housing and Public Works Secretary Md Nazrul Islam.

The current requirement for obtaining the lessor organisation's approval will, however, remain for changes to plot size through subdivision or amalgamation, changes in plot or flat category, or any modification to the masterplan, officials said.

The 14 July meeting was attended by representatives from the ministries of land, finance, and law, the Directorate of Registration, and other relevant agencies.

According to the meeting minutes, Secretary Nazrul Islam said, "Even after becoming a long-term leaseholder, the requirement to obtain approvals at various stages is causing harassment and suffering for leaseholders and their heirs. This practice will continue to create such problems for generations. It has also created opportunities for irregularities and corruption."

He also observed that private developers have recently been harassing buyers and extorting crores of taka in the name of prior approval for transferring land or flats sold under freehold deeds. "The ministry is taking special initiatives to protect the public from this," he said.

An official noted that lessor organisations currently charge a fee for such approvals as part of their revenue. To maintain this income, a fixed amount will be collected through the sub-registry office in favour of the lessor organisation via a specific payment code or bank account when plots, flats, spaces, or shops are transferred.

"The necessary arrangements will be made in coordination with the finance, law, and land ministries," he said.

Which properties are leased for 99 years

Agencies under the housing and public works ministry lease developed plots, flats, commercial spaces, and shops for 99 years. Rajuk, the Chattogram Development Authority, and similar bodies in major cities and districts allocate such leases under various projects. In Dhaka, Rajuk has allotted leasehold plots and flats in Dhanmondi, Gulshan, Banani, Uttara, Purbachal, and Jhilmil.

The National Housing Authority, also under the ministry, typically leases residential buildings, apartments, flats, and commercial land. It also leases various types of plots and land for joint ventures with private developers.

Under the current system, leaseholders must obtain prior approval from the leasing agency before selling, gifting, mortgaging, or executing a power of attorney for the property. 

Additionally, after a sale or inheritance, the new owner must secure the leasing agency's approval for mutation before the assistant commissioner (land) will process it.

A land allottee from Rajuk's Jhilmil project, speaking anonymously, said even after paying the full amount for a leased plot, it takes at least two to three months of repeated visits to complete the lease deed.

"The authorised officer is often absent, and when present, cites other commitments and asks the applicant to return another day. They harass people and finalise the deed only after taking extra money," he said.

He added that obtaining a sale permit requires going from desk to desk. "Officials deliberately delay the process, causing harassment, and only complete the work in exchange for hefty bribes. For those unwilling to pay, the ordeal never ends," he said.

Inheritance of leased properties

A ministry official, requesting anonymity, said when a leaseholder of a Rajuk plot or flat dies, their children inherit the property. Although land mutation should take place in the local land office, current lease conditions require heirs to first update ownership in Rajuk's records before proceeding to mutation.

"Rajuk officials often harass applicants by demanding numerous documents and forcing repeated visits. Many end up paying large bribes. Even after paying, the problem persists, as heirs of heirs face the same process in the future. This cycle of harassment and bribery continues generation after generation," the official said.

He added, "Leaseholders face similar harassment and corruption when selling or transferring the property, mortgaging it for loans, or executing gifts or powers of attorney."

Real Estate and Housing Association of Bangladesh (REHAB) Senior Vice-President Liakat Ali Bhuiyan welcomed the decision, saying: "A 99-year lease means the lessee is the rightful owner. Still, requiring approval from the lessor organisation for sales, donations, or gifts is nothing but harassment. The government's decision to abolish these practices will be very positive."

He added that the requirement for buyers to seek prior approval from private companies for subsequent transfers of flats or plots sold under freehold deeds is also "unreasonable".