Table of Contents
Definition of Real Estate.................................................................................................................2
Real Estate vs. Personal Property vs. Real Property.......................................................................2
Types of Real Estate........................................................................................................................2
a) Qualified Estate.......................................................................................................................2
b) Freehold Estates (Permanent Ownership)...............................................................................3
Types of Freehold Estates:...........................................................................................................3
c) Non-Freehold Estates (Limited Duration)...............................................................................4
d) Concurrent Estates (Shared Ownership).................................................................................4
e) Chattel (Personal Property).....................................................................................................5
Tenure of Land.................................................................................................................................5
Mutation...........................................................................................................................................6
The Necessity of Mutation...........................................................................................................6
Mutation in Case of Inheritance..................................................................................................7
Mutation in Case of Transfer.......................................................................................................7
Escheat.............................................................................................................................................9
Property Subject to Escheat.........................................................................................................9
Unclaimed or Abandoned Property and Escheat.......................................................................10
Procedure for Escheat................................................................................................................11
Encumbrance..................................................................................................................................11
Types of Encumbrances.............................................................................................................12
Limitations on Property Use......................................................................................................12
Liens (Financial Claims on Property)........................................................................................12
Land Zoning...................................................................................................................................12
Types of Zoning.........................................................................................................................13
1|Page
Necessity of Land Zoning in Bangladesh..................................................................................13
Benefits of Land Zoning in Bangladesh....................................................................................13
Scope of Land Zoning in Bangladesh........................................................................................14
Zoning Areas in Bangladesh......................................................................................................15
Acts Related to Real Estate Finance and Investment................................................................15
2|Page
Chapter 1 Note
Definition of Real Estate
Real estate includes land, buildings, and natural resources such as water, minerals, vegetation,
and livestock. It is categorized into:
Residential – Includes undeveloped land, houses, condominiums, and townhomes.
Example: A person buying a house in a gated community.
Commercial – Includes office buildings, warehouses, and retail spaces.
Example: A shopping mall or a warehouse used for business.
Industrial – Includes factories, mines, and farms.
Example: A textile factory producing garments.
Real Estate vs. Personal Property vs. Real Property
Personal Property – Includes movable assets like furniture, appliances, stocks, and
bonds.
Example: A refrigerator in a rented apartment belongs to the tenant if purchased
separately.
Real Estate – Includes land and buildings.
Example: A piece of farmland owned by an individual.
Real Property – Includes real estate plus ownership rights like leasing, selling, or
inheriting.
Example: A landowner who can sell, lease, or pass the land to heirs.
Types of Real Estate
a) Qualified Estate
A Qualified Estate is a type of land ownership that lasts forever—but only if a certain
condition is met. If the condition is broken or no longer true, the ownership automatically ends
and the land goes back to the original owner or as stated in the original agreement. Example: A
piece of land is given to Rahim as long as he remains unmarried. If Rahim marries, the land
goes back to the original owner.
Key Points:
3|Page
May Last Forever: As long as the condition is followed.
Ends Automatically: No court or legal action is needed if the condition is broken.
Can Be Inherited: Passes to heirs unless the condition fails.
No Extra Steps: Ends on its own if the rule is not followed.
b) Freehold Estates (Permanent Ownership)
Freehold estates mean full ownership of land and buildings without a time limit. The owner has
complete rights to use, sell, or pass on the property.
Key Characteristics:
1. Immobility: The property is land or something attached to land, like a house or building.
You can’t separate the ownership from the land itself.
2. No Fixed Duration: The ownership doesn’t expire. It can last forever (like passing it to
heirs) or for a person’s lifetime.
Types of Freehold Estates:
1. Fee Simple Absolute – The most complete form of ownership with no conditions.
Example: A person buying a home and owning it indefinitely, with the right to sell, lease,
or pass it on to heirs.
2. Fee Simple Determinable – Ownership continues until a condition is violated, after
which it reverts to the original owner. It is also referred to as a base fee or qualified fee.
Example: A school is given land as long as it is used for educational purposes. If it
becomes a shopping mall, land goes back to the giver.
3. Fee Simple Subject to Condition Subsequent – Similar to Fee Simple Determinable,
but the original owner must take legal action to reclaim the land.
Example: A landowner grants land to a charity, but states that if the land is used for
commercial purposes, they have the right to take it back.
4. Fee Tail – Ownership limited to specific heirs and cannot be sold outside the family.
Example: A castle is passed only to the owner's children and grandchildren. No one else
can inherit it.
4|Page
5. Life Estate – Ownership lasts for a person’s lifetime but does not extend to heirs.
Example: A grandmother gives her house to her son for his lifetime. After he dies, it goes
to her granddaughter.
c) Non-Freehold Estates (Limited Duration)
Also known as leasehold estates, these provide temporary rights to possess land or property
without ownership.
1. Estate for Years – Fixed-term lease agreements with a set start and end date.
Example: A company renting office space for 5 years under a contract.
2. Estate from Year to Year – Renewable lease with no fixed end date.
Example: A tenant leasing farmland on a yearly renewal basis.
3. Tenancy at Will – The lease can be ended at any time by either party.
Example: A homeowner allowing a friend to stay rent-free with no formal agreement.
4. Tenancy at Sufferance – When a tenant stays beyond the lease expiration without the
landlord’s consent.
Example: A person refusing to vacate an apartment after the rental contract has ended.
d) Concurrent Estates (Shared Ownership)
Estates held by multiple individuals at the same time.
1. Joint Tenancy – Equal ownership with the right of survivorship (ownership transfers to
surviving owners when one dies).
Example: Two business partners owning an office building together; if one dies, the other
automatically inherits the property.
2. Tenancy by the Entirety – Exclusive to married couples; one spouse cannot sell the
property without the other's consent.
Example: A husband and wife owning a house together, where neither can sell without
the other's approval.
3. Tenancy in Common – Owners may have unequal shares and no right of
survivorship (ownership passes to heirs instead of co-owners).
Example: Three siblings inherit a property where one owns 50%, and the other two own
25% each.
5|Page
e) Chattel (Personal Property)
Chattel refers to personal belongings or movable items that are not attached to land. While the
term was once used to refer to slaves and cattle (which is why it's considered offensive today), it
now mostly refers to things like furniture, cars, or jewelry.
Example: Vehicles, jewelry, furniture, or livestock.
Tenure of Land
Land tenure refers to the legal framework governing the ownership of land, specifically how it is
held by individuals. In common law systems, the term is used to describe the relationship
between an individual (tenant) and the land they occupy. The sovereign (often referred to as The
Crown) holds land in its own right, and all private landowners are either tenants or sub-tenants.
Historical Context: Over time, different forms of land ownership have been established.
Historically, in a feudal system, the Crown granted land to lords, who were called tenants-in-
chief. These lords would, in turn, grant portions of land to lesser tenants in exchange for services.
This system of granting subordinate tenancies was called sub-infeudation.
Role of the Landholder: A landholder or landowner is an individual who holds significant rights
over land, often referred to as the "owner" of the land. In feudal times, land ownership was
tiered, and the monarch was the ultimate landowner, with all others holding land from someone
else (except for the monarch).
Key Points
The term "tenure" signifies the relationship between the tenant and the lord, rather than
between the land and the tenant.
Over history, various systems of land ownership have developed, often rooted in feudal
systems where land was granted in exchange for services.
6|Page
Mutation
Mutation is the process of updating land records to reflect a change in ownership due to
inheritance, sale, gift, mortgage, lease, auction, or government acquisition. It ensures the
new owner's name is recorded in the Records of Rights (RoR/Khatian) and legally recognized
in land documents.
The Necessity of Mutation
a) After Death of the Recorded Owner – When an owner passes away, legal heirs must apply
for mutation to transfer ownership.
b) Transfer of Land – Required for changes in ownership due to sale, gift, will, decree, trust,
or waqf to update land records with the new owner's name.
c) Auction of Land – When land is sold through a civil or certificate case auction, the auction
buyer must apply for mutation.
d) Subdivision, Amalgamation & Consolidation – When land is divided, merged, or
consolidated, mutation ensures updated records reflect the correct ownership and parcel details.
e) Settlement of Khas Land by the Government – When the government allocates khas
(state-owned) land to individuals, mutation is required to record the new owner.
f) Acquisition of Land by the Government – When the government acquires land for
infrastructure or development projects, mutation is required to update ownership in official
records.
g) Alluvion or Diluvion (Natural Land Changes) – When land is gained (alluvion) or lost
(diluvion) due to river or sea movement, mutation updates records accordingly.
h) Abandoned Land – If a property is left unclaimed, mutation ensures rightful ownership is
recorded after legal procedures.
7|Page
Mutation in Case of Inheritance
When a landowner dies, the legal heir(s) can apply for mutation to the Union Land Assistant
Officer (ULAO)/Tahsildar. The ULAO investigates on-site, verifies the heir(s) based on
inheritance and religious laws, and submits a report with recommendations to the AC (Land).
The AC (Land) conducts a hearing, approves or rejects the mutation application, and arranges
for record correction accordingly.
If there is any dispute over the determination of heirs, the court will resolve it under the
Succession Act, 1825.
Mutation in Case of Transfer
Any land transfer, such as sale, gift, or waqf, must be registered. The Sub-Registrar sends a
Land Transfer (LT) notice to the AC (Land), who then initiates a mutation case and notifies the
concerned parties.
An inquiry is conducted, sometimes by a surveyor or field Kanungo, to verify the seller’s
ownership and right to transfer. If valid, the AC (Land) approves the mutation in favor of the
transferee(s).
Mutation is also applicable in cases of auction purchase under the Public Demand Recovery
Act, 1913, court decrees, or land changes due to erosion or accretion. The AC (Land) must
ensure that land acquisition limits set by law (EBSATA, PO 98 of 1972, Ordinance 10 of 1984)
are not exceeded.
Based on the order, new khatian(s) are created and recorded in Register-1 (Khatian/RoR),
Register-2 (Tenants' Ledger), and Register-9 (Mutation Register).
If aggrieved by the order of AC (Land), one can appeal to:
The Collector within 30 days
The Divisional Commissioner within 60 days
The Land Appeal Board within 90 days
The decision of the Land Appeal Board is final.
8|Page
Escheat
Escheat is when a state takes ownership of property because there is no rightful owner. This
often happens when someone dies without a will (intestate) and has no relatives to inherit the
property.
Key Differences from Forfeiture:
Forfeiture occurs when someone loses property due to illegal actions (e.g., crime).
Escheat happens because there is no one left to claim the property, not because of any
wrongdoing.
Escheat vs. Succession
Succession occurs when a decedent's property passes to legal heirs.
Escheat occurs when no heirs exist, and ownership reverts to the state.
Property Subject to Escheat
Escheat applies to property that has no legal owner due to the owner's death without heirs or
a valid will. The government assumes ownership under state law.
Initially, escheat applied only to real property (land).
Now, it can apply to personal property too, such as bank accounts or stocks.
States must follow due process, giving people the chance to prove ownership before the
state claims the property.
Unclaimed property (e.g., abandoned bank accounts) can escheat to the state after a
period of time.
Procedure for Escheat
1. Locating the Owner: States follow a procedure to find the rightful owner of unclaimed
property. In some states, if no one claims the property, it automatically goes to the state.
9|Page
In other states, there’s a waiting period before the state can take ownership of the
property.
2. Claims Process: People who believe the property belongs to them, known as claimants,
can come forward during the process. Some states require claimants to act within a set
time or they lose the right to claim the property.
3. State's Responsibility: The state must prove that there is no one who legally owns the
property. Presumptions, such as assuming someone who’s been missing for seven years is
dead, can be used to help the state prove ownership.
4. Rewarding Informers: Some states offer rewards to informers who notify the state
about unclaimed property. Informers may need to provide evidence and see the case
through before receiving payment.
5. Escheater's Role: An escheater is a person appointed by the court to manage the escheat
process. The escheater can be paid even if they don’t recover the property, as long as they
have worked on the case.
Encumbrance
An encumbrance is any legal claim or right on a property held by someone other than the
owner. It doesn’t mean someone else owns the property, but it does mean the owner has certain
obligations or restrictions that affect how they can use or sell the property. Because it’s not an
ownership interest, encumbered property can still be bought or sold, but the new buyer will be
bound by the encumbrance unless it is cleared or released.
Types of Encumbrances
Limitations on Property Use
These encumbrances restrict how the property can be used:
i. Easements: An easement is a right to use someone else’s property for a specific purpose
without owning it.
10 | P a g e
For example, utility companies often have easements to run wires or pipes through someone’s
land. Another example is a right of way, where someone can drive across your land to reach
their own property. However, the easement doesn’t give them ownership or the right to use the
property for other purposes, like hunting.
ii. Memorial: A memorial is a notice or restriction placed on the property to inform potential
buyers about something important.
For example, if land has been reclaimed from a swamp or wetland, a memorial could be added to
the title to inform buyers of any potential issues or restrictions related to that.
iii. Deed Restrictions (Covenants or Limitations): Deed restrictions are rules written into the
deed when the property is sold. These rules can limit how the property is used.
For example, a deed restriction might require a homeowner to maintain their lawn or limit the
number of cars that can be parked in front of the house.
Liens (Financial Claims on Property)
A lien is a claim on the property held as collateral against a debt or loan. If the debt is not paid,
the lienholder may have the right to foreclose on the property.
For example, if someone has a mortgage, the bank has a lien on the property. This means if the
owner doesn’t pay the mortgage, the bank can take the property.
Voluntary Liens – Created with the owner's agreement.
Example: A mortgage loan, where the bank holds a lien on the property until the loan is
repaid.
Involuntary Liens – Imposed due to unpaid debts.
Example: A tax lien placed by the government when a property owner fails to pay taxes.
Land Zoning
Land zoning refers to the demarcation of geographic areas according to specific combinations of
properties or features. These features and combinations are selected based on the purpose of the
zoning exercise.
11 | P a g e
Zoning serves as a tool for integrated planning and sustainable management of land resources by
governments. It helps regulate how land is used and ensures proper land utilization within
specific areas.
Types of Zoning
Form-based Zoning: Form-based zoning focuses on regulating the physical form of
buildings and how they relate to the street and the surrounding environment. It looks
at the appearance and layout of buildings.
Use-based Zoning: Use-based zoning focuses on separating land uses to avoid
conflicts, like keeping residential areas separate from industrial areas. It can also allow
a combination of compatible uses, such as a residential area with shops.
Necessity of Land Zoning in Bangladesh
Land zoning refers to the process of dividing land into zones for specific uses, such as
residential, commercial, agricultural, and industrial. In Bangladesh, where rapid urbanization,
population growth, and environmental degradation pose serious challenges, land zoning is
essential for several reasons:
1. Control unplanned urbanization – Zoning guides city growth by allocating specific
areas for housing, industry, and services, preventing chaotic expansion.
2. Protect agricultural land – It restricts the conversion of fertile farmland into buildings,
supporting food security and rural livelihoods.
3. Preserve the environment – Zoning safeguards wetlands, forests, and flood-prone areas
to reduce ecological damage and disaster risk.
4. Improve infrastructure planning – It enables proper placement of roads, drainage,
utilities, and public services based on land use.
5. Ensure public health and safety – Separates residential areas from hazardous or noisy
industries, reducing pollution and health risks.
12 | P a g e
6. Promote investment and development – Clear zoning laws attract investors by reducing
uncertainty and encouraging organized growth.
7. Reduce land disputes and conflicts – Defines legal land use, minimizing illegal
occupation and misuse through regulated development.
Benefits of Land Zoning in Bangladesh
1. Ensure optimal economic use of land: Facilitates the creation of zoning maps for
agriculture, fisheries, forestry, tourism, urban/rural settlements, and industrial/commercial
zones to ensure optimal economic use of land.
2. Efficient Land Resource Management: Enables the development of a centralized land
resources database and a land zoning information system to support data-driven
planning and decision-making.
3. Comprehensive Land Use Documentation: Provides a detailed land zoning report
that captures physical features, land classifications, and usage patterns for effective
monitoring and planning.
4. Informed Social and Environmental Planning: Supports community-based reporting
and social-environmental impact assessments, helping to address local needs and
minimize negative consequences.
5. Protection of Sensitive Areas: Includes specific reports on char land and ecological
critical areas, ensuring sustainable development and conservation of vulnerable regions.
6. Legal Framework Development: Leads to the formulation of a draft Land Zoning
Law, establishing a legal foundation for regulating land use and enforcing zoning
regulations across the country.
Scope of Land Zoning in Bangladesh
Zoning is used to separate different land uses that shouldn’t mix. For example, you wouldn’t
want factories next to homes. Zoning helps maintain the character of neighborhoods and
communities.
13 | P a g e
Zoning is mostly controlled by local governments, like city corporations or municipalities.
However, national or state authorities may also set rules.
What Zoning Regulates:
Zoning can control:
What activities can happen on land, such as farming, building homes, or running
businesses.
How crowded an area can be (e.g., single homes vs. apartment buildings).
Building height and how much land a building can occupy.
Where buildings are placed on the land.
The amount of open space, parking, and traffic lanes.
Zoning Areas in Bangladesh
The major areas in Bangladesh that need to be identified through the land zoning program
include:
1. Agricultural Zone
2. Fisheries Zone
3. Forest Zone
4. Urban Zone
5. Commercial and Industrial Zone
6. Char Land and Ecologically Critical Area
7. Haor-baor Areas
8. Barind Zone
9. Tourism and Historical Importance Areas
10. Others
14 | P a g e
