Government Eases Rules for Housing Plot and Flat Transfers

NN Report:

The Ministry of Housing and Public Works has issued a landmark notification simplifying post-transfer management of residential plots and flats developed under its authority. Under the new order, the longstanding requirement to obtain prior approval from the lessor institution for name transfer, sale, gift, or mortgage of residential plots and flats has been abolished.

According to the gazette issued on Sunday, residential plots or flats developed and allocated by the Ministry and its affiliated agencies can now be transferred without the approval of the lessor organization. However, approval will still be required in cases involving subdivision, amalgamation, or change in land use that affects the master plan.

The notification states that during the registration process, buyers must pay a service fee equivalent to 2% of the deed value for flats or developed land and 3% for plots or land, through the sub-registrar office to the concerned authority. For projects under the Ministry and the Public Works Department, the same rates and procedures will apply, with the fees collected as Non-Tax Revenue (NTR).

To maintain accurate ownership records, buyers must submit a certified copy of the deed and mutation records to the lessor institution within 90 days of registration. Failure to do so may result in a daily fine of Tk 50, up to a maximum of Tk 10,000. The lessor organization must then update ownership records within 30 days and notify the buyer through registered mail or electronic means. Negligence or delay in this process will lead to departmental action against responsible officials.

The gazette further declares that upon the expiry of the 99-year lease term, it will be automatically renewed, and no further transfer fees will be required. However, changes to land use or plot configuration will continue to need prior approval.

The previous approval system will remain in place for institutional, commercial, and industrial plots or spaces, as well as for properties involved in ownership disputes, government interest cases, or those declared as abandoned property that have not been released since March 1988. Additionally, plots and flats allocated under special consideration between January 2009 and July 2024 will continue to require prior approval.

A detailed list of residential plots and flats exempt from prior approval requirements will be published soon as a schedule to this notification, the Ministry said.

Issued in the public interest under the authority of the President, the gazette was signed by Dr. Md. Nurul Amin, Deputy Secretary of the Ministry of Housing and Public Works, and takes immediate effect.

Officials described the reform as a “major step toward easing services, reducing harassment, and curbing corruption” in post-allocation housing management.

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Key Highlights of the New Rules:

No prior approval needed for transfer, sale, gift, or mortgage of residential plots/flats.

2% service charge for flats and 3% for plots during deed registration.

Certified copy submission within 90 days; fines for delays.

99-year leases to renew automatically.

Old rules remain for commercial, industrial, or disputed properties.

List of approval-free properties to be published soon.