Sheikh Mehedi Hassan and his wife recently moved into their flat from a rented one in Mirpur-6.

For them, it was a dream come true – ever since their marriage, the couple had been planning to own a flat in the capital city.

In fact, Hassan, a banker, had lived in rented flats since his graduation.

He had some apprehensions before buying the flat, as it was going to be the most expensive purchase of his life.

So, he did his homework and learnt about the entire process from the flat selection to verification of essential documents, which are crucial to this end, before placing the booking order.

He did not hesitate to seek help.

A number of his colleagues from the bank's legal department lent a helping hand to understand the legal procedures and scrutinise and verify documents of the developer and the land records.

"As a result, I faced little troubles during our transition to our own flat from a rented house," the banker said.

There are several things that need to be looked at before buying a flat, plot or piece of land. Otherwise, there is a risk of getting into trouble, he said.

"One shouldn't rush to sign a purchase agreement. Since you want to build a permanent address with your hard-earned savings, it is best to do thorough research on the seller and show the land deeds and contracts to a lawyer and then book the flat."

Buyers must find out whether the Rajdhani Unnayan Kartripakkha (Rajuk) has approved the design.

He said all of the conditions should be well-understood and be clearly laid out in the agreement. 

"Make it clear in the contract the flat that you are buying. It has to be stated in the deal that the buyer is not obliged to pay any extra beyond the original amount agreed upon."

If any addition is required, it must be done with the mutual consent of both parties, Hassan said.

Potential buyers need to be certain whether the realtor or the seller actually owns the flat.

"You have to go to the land office and collect the information about the owner and occupants of the land. It is necessary to check whether the name of the seller is mentioned in the latest land record."

Finding out whether the developer is new or old, has any experience, and is a member of the Real Estate and Housing Association of Bangladesh (REHAB) will help pick the right seller.

"You should try to find out if the company had tricked anyone in the past," Hassan said.

He said in many cases, landowners who have problems with possession give the land to the developer.

The buyers should check the developer's power of attorney and the agreement that has been inked with the landowner. Sometimes, contracts between landowners and developers are not registered.

The developer often deviates from the original design plan approved by Rajuk and adds additional floors.

"It is better not to book a flat with such a developer. You must keep an original copy of the agreement," Hassan said.

The buyers must be sure whether there is an electricity connection, and it is a commercial or residential connection.

"It has to be seen whether the gas connection has been obtained legally."

It has to be ascertained whether the flat has been built on a government, a vested or abandoned property.

"We have to find out whether the land has ever been auctioned due to the non-payment of rent, and the flat is mortgaged to a bank for a loan," said Hassan.

If the seller has got power of attorney, its validity needs to be checked. It is better to buy the flat by contacting the realtor directly without buying from an intermediary.

If it is purchased in instalments, the contract should clearly outline how many instalments would be made and when the transfer will take place.

The agreement will also specify how the issue will be sorted out if buyers cannot purchase it, Hassan said.

All charges, registration fees and liabilities should be clearly known so that there are no complications in the future.

Mohammad Shishir Monir, a legal expert, said a checklist could help a buyer find whether the property is solid.

"You have to check property documents with the bank and sub-registry office."  

Nasimul Baten, managing director of Delta Brac Housing Finance Corporation, said it is comparatively easier to buy if it is a leasehold property. In the case of such property, only the lease deed, mutation, and tax records have to be examined.

If it is private land, one should check the record of rights, attorney power, and the plan approved by Rajuk, he said.

Ataur Rahman Chowdhury, head of the consumer division of IDLC Finance, said the price of a flat depends on whether the property is ready or under construction.

In the case of an under-construction flat, many things can deviate.

"So, one has to verify the track record of the developer to avert future hassles because the extent of deviation would be less in case of good developers."

He bats for securing a home loan before buying a flat though the amount could be low.

"When you take a loan from a bank or non-banking financial institution, it will verify the legal status of the property, the developer and all the documents."