Real Estate Development and Management Act 2010: what developers must do

The Real Estate Development and Management Act 2010 sets out what a developer owes buyers and landowners. Most disputes that end up in arbitration (more than 24,000 apartment and plot cases were pending at the end of 2025, according to TBS) are about the points below: late handover, registration not done, and extra money demanded mid-way.

1. Register, and sell on paper

A developer must be registered to sell, and the registration has to be renewed (sources cite a five-year term). Every sale needs a written agreement for sale that states the unit, its size, the price and how it is paid, the handover date and the specifications. A payment schedule that adds up to the price and is signed by both sides prevents most later arguments about "sudden" demands.

2. Hand over on the date you wrote

If the flat is not handed over by the date in the agreement, the buyer can claim back money plus the compensation agreed in the contract. Where none was agreed, secondary sources describe a default of 15% of the money paid, payable within six months. Track every project's promised date against the stages still open, and know your exposure on each booking before the date arrives.

3. Papers within three months of full payment

Once the buyer has paid in full, the deed and registration papers should follow within three months. Keep the deed number and date against each booking so you can show it was done.

4. Cancellation by the buyer: 10%, refunded within three months

When a buyer asks to cancel, the developer may keep 10% of what was paid as an administrative cost and must refund the rest within three months, by a single cheque or pay order (Section 17, as summarised by the Daily Star law desk). Cancelling a buyer for missed instalments needs written notice first; record each demand and reminder you send.

5. The landowner's share is not optional

Failing to transfer the landowner's agreed share can mean up to two years in prison, a fine of up to ৳20 lakh, or both (Section 30). Rental compensation for delayed handover to the landowner is also expected (Section 15). Keep the allocation of share flats and every rent payment on record.

6. Disputes go to arbitration

Disputes under the Act are referred to arbitration under the Arbitration Act 2001. In arbitration, the side with dated records wins: receipts, demand letters, reminders sent, stage completion dates and photos.

This guide is based on secondary summaries of the Act. Read the official text on bdlaws.minlaw.gov.bd and take legal advice for your agreements.