Question:
My friend and I bought a flat together, but now my friend no longer wants to continue. I want to pay him back the amount he contributed and transfer the flat to my name. The registration is done in both of our names. What steps should I take to complete the registration in my name? How much will it cost?
Answer:
To transfer the ownership of the flat solely to your name, follow these steps:
- Agreement between Both Parties:
- You and your friend need to reach a mutual agreement about the price to be paid to your friend for his share in the property.
- This agreement should be documented and signed by both parties.
- Draft a Deed of Gift or Sale Agreement:
- Once you’ve agreed on the payment, a Deed of Gift (if your friend is transferring ownership without receiving payment) or a Sale Agreement (if your friend is selling his share to you) needs to be drafted.
- This document should be signed by both you and your friend and legally notarized. You may need to consult a lawyer for drafting the document properly.
- Pay Stamp Duty and Registration Fees:
- The deed (whether it’s a gift or sale) needs to be stamped as per the Stamp Act of Bangladesh. Stamp duty depends on the value of the property or the share being transferred.
- After this, the deed needs to be registered with the Sub-Registrar Office (the same place where the original property registration was done).
- The registration fee is typically around 2% to 3% of the transaction value or the value of the property share being transferred, but it can vary.
- Update the Land Registry:
- After the transfer deed is registered, the land and property records will be updated to reflect that the property is now solely in your name.
- You may need to submit the original title deed, the new transfer deed, and proof of payment of stamp duty at the local land registration office.
- Transfer of Ownership in Utility and Service Records:
- Once the registration is complete, you will need to update your name in the property’s utility bills and service records (electricity, water, etc.).
Estimated Costs:
- The stamp duty and registration fees can range from 2% to 3% of the property’s value or the value of the transferred share.
- The legal and notary charges for drafting and notarizing the deed may also add to the overall cost, depending on the lawyer or notary services you use.