Question:
Is a deed executed but not registered or dismissed considered invalid, and what impact does it have on the deed?
Answer:
In Bangladesh, the validity of a deed largely depends on whether it has been properly executed and registered. The general principles are as follows:
1. Execution of the Deed:
- Execution refers to the act of signing the deed by the parties involved. A deed is validly executed once all the parties involved sign it, but execution alone does not make the deed fully effective under the law. Registration is required to give it full legal effect.
2. Registration Requirement:
- According to the Registration Act, 1908, certain types of deeds, such as those related to immovable property (like land or buildings), need to be registered to be legally binding and enforceable. A deed that is executed but not registered may not have full legal effect, especially if it pertains to property transactions.
- Failure to register the deed may make it inoperative, and the parties may face legal difficulties when trying to enforce it in court. However, the deed is not automatically invalid; it simply might not be enforceable until it is registered.
3. Dismissal of a Deed:
- If a deed is not dismissed (i.e., it has not been legally cancelled or revoked), it does not mean that the deed is invalid. If the parties decide to cancel the deed, a formal revocation process must be followed. However, the lack of dismissal does not automatically invalidate the deed unless it is proven to be fraudulent or contrary to law.
4. Consequences of an Unregistered Deed:
- If a deed is executed but not registered, it may not be legally recognized in the event of a dispute, particularly concerning property ownership. Registration serves as public notice and gives the deed its legal standing.
- In case of immovable property, the deed will only be considered valid and enforceable after it is duly registered in accordance with the law.