Flat buyers left in legal limbo
For a middle-income salaried employee, buying a flat with hard-earned savings is often a dream of financial security. But for one such buyer, that dream turned into a nightmare when he tried to sell his flat just months after taking possession.
The buyer had paid for the flat in instalments over five years, using his available resources, and finally moved into the property. However, when financial pressure forced him to consider selling it, he discovered complications with the developer’s documentation.
Objections related to the involvement of government khas land and shortcomings in the property documents prevented him from selling the flat, according to the account.
His experience reflects a wider problem faced by thousands of flat and plot buyers in Bangladesh, many of whom spend years moving between offices and courtrooms after disputes arise with real estate developers.
The most common complaints against developers include delays in handing over flats, failure to complete registration, defects discovered after handover and demands for additional payments beyond agreed terms.
Yet buyers facing such disputes cannot directly file cases against developer companies in court over these issues under the existing legal framework. They are required to approach arbitration tribunals, a mechanism originally intended to provide speedy resolution.
In practice, however, many such cases remain pending for years, with some taking more than a decade to resolve. The prolonged process, along with the associated costs, has left many buyers frustrated and uncertain about when they will receive legal redress.
According to Supreme Court sources, 24,403 arbitration applications concerning apartments and plots were pending in courts across the country as of October 31, 2025. The cases involved financial claims totalling approximately Tk 19,630 crore.
Dhaka alone accounted for 17,308 pending cases involving around Tk 14,500 crore. Of these, 2,144 cases involving approximately Tk 2,300 crore had remained pending for more than 10 years.
Another 2,402 cases involving about Tk 2,080 crore had been pending for more than five years.
Outside Dhaka, 7,095 arbitration applications involving around Tk 5,130 crore were awaiting resolution. Chattogram had the highest number of cases, with 3,244 involving approximately Tk 3,200 crore, followed by Sylhet with 1,089 cases involving around Tk 800 crore.
Meanwhile, Md Mazharul Islam, a sanitary ware supplier and proprietor of MM Trading, has alleged that he became a victim of fraud, forgery and death threats after purchasing a flat from developer Al Falah Real Estate Limited in Mirpur.
Despite paying almost the full amount, Mazharul said he had not received the flat or the deed of ownership within the stipulated period.
Speaking at a press conference at the Dhaka Reporters Unity (DRU) on July 26, he alleged that he had faced continuous threats and intimidation after seeking settlement of the outstanding issues and demanding the deed. He claimed the threats were intended to pressure him into withdrawing his lawsuit.
Real estate sector professionals say buyers need to conduct thorough verification before purchasing land or flats.
Speaking to The New Nation, Md Mahfuzul Karim, Director (Legal) of the Rajdhani Unnayan Katripakkha (RAJUK) said that the relevant authorities would be able to say whether any Bhawal Estate land exists in the capital.
“We can speak about building development,” he said. “If anyone falls victim to fraud and seeks legal assistance, we can provide that support.”
Masud Alam, a director of Edition Real Estate Company who has more than two decades of experience in the sector, told The New Nation that complications could arise over certain Bhawal Estate lands in Badda and Nadda areas of the capital.
He said problems could emerge if land clearance was not subsequently obtained using CS and RS records after some SA parch as were destroyed in 1971.
According to Masud, buyers should have property documents checked by their own legal teams before purchasing land.
He advised buyers to verify documents through the AC Land office, the Registry office and the Deputy Commissioner’s office. If a bank loan is involved, the bank’s legal team may also conduct verification.
Without proper verification, buyers may face difficulties completing registration after purchasing a property, he said, adding that many owners are unaware of problems affecting their land.
Around 800 members of the Real Estate and Housing Association of Bangladesh (REHAB) and thousands of developer companies operate in the capital’s real estate sector. Allegations against different companies emerge from time to time.
In some cases, buyers refrain from approaching police or the media because of fear of the companies involved. Some buyers have also allegedly been lured into instalment schemes and defrauded.
Reputable developers generally conduct due diligence before purchasing land to avoid future complications and protect their brand reputation. However, industry insiders say the involvement of middlemen in marketing can sometimes create persistent problems.
The growing backlog of arbitration cases, coupled with disputes over documentation, registration, delayed handover and alleged fraud, has left many property buyers facing a difficult question: after investing their life savings in a home, how long must they wait to secure clear ownership and effective legal remedy?
