How to Buy a Home in Bangladesh

Buying a home in Bangladesh as an expat can be a complex process, but with the right information and guidance, it can be a rewarding investment. This guide will provide you with the necessary information about the process, legal requirements, and potential pitfalls to avoid when purchasing property in Bangladesh. Whether you're looking to buy a home for personal use or as an investment, understanding the local real estate market and its regulations is crucial.

How do I find houses for sale in Bangladesh?

There are several ways to find houses for sale in Bangladesh. Online property portals like Lamudi, Bproperty, and Property Bazaar are popular platforms where you can browse listings. Local newspapers also regularly feature property listings. Hiring a local real estate agent can also be beneficial as they have extensive knowledge of the market and can help you find a property that suits your needs and budget.

Are there restrictions on foreigners owning property in Bangladesh?

Yes, there are restrictions on foreigners owning property in Bangladesh. According to the law, foreigners cannot directly own immovable property in Bangladesh unless it is inherited or gifted. However, foreigners can legally get around this by setting up a company in Bangladesh. The company, even if wholly foreign-owned, is considered a Bangladeshi entity and can purchase property.

Does Bangladesh have an MLS type system?

Bangladesh does not have a Multiple Listing Service (MLS) system like in the United States. However, online property portals and real estate agencies provide similar services, where multiple real estate listings from different real estate agents are compiled in a single platform.

Do brokers have licenses and how do I know if they are licensed?

Yes, real estate brokers in Bangladesh are required to have a license from the Bangladesh Real Estate & Housing Association (REHAB). To verify if a broker is licensed, you can ask them for their REHAB membership number and check it on the REHAB website.

What documents are required when buying a home?

When buying a home in Bangladesh, you will need several documents. These include the Title Deed, Mutation Certificate, Up-to-date Rent Receipt, Clearance Certificate from the relevant City Corporation or Municipality, and No Objection Certificate (NOC) from the relevant authorities. It's crucial to ensure all documents are genuine and up-to-date to avoid legal complications.

Do I need a lawyer when buying a home in Bangladesh?

Yes, it's highly recommended to hire a lawyer when buying a home in Bangladesh. A lawyer will help you verify the authenticity of the property documents, ensure the property is free from any legal disputes, and assist in the preparation and registration of the Sale Deed. The cost of hiring a lawyer can vary, but it's generally around 1-2% of the property value.

Do people typically buy a property with all cash or take out a mortgage?

Both methods are common in Bangladesh. Some people prefer to buy property outright with cash, especially if they have the means. However, many also opt for a mortgage. Banks and financial institutions in Bangladesh offer home loans to both locals and foreigners who have a steady income.

Are there inspections that take place, and if so what is that process like?

Yes, property inspections are a crucial part of the home buying process in Bangladesh. It's important to hire a professional to conduct a thorough inspection of the property to check for any structural issues, legal disputes, or encroachments. The inspection report can be a valuable tool in negotiating the price of the property.

What are some of the pitfalls to avoid when buying property in Bangladesh?

Some common pitfalls to avoid when buying property in Bangladesh include not verifying the authenticity of property documents, not conducting a thorough property inspection, and not hiring a lawyer. It's also important to avoid rushing the process. Take your time to understand the market, compare different properties, and negotiate the best deal.