What is a security deed, and how long is its validity?

Bangla Press Desk:   When buying or selling land, we make a pledge at the beginning. Because it is a guarantee that the seller cannot sell the land to anyone else in the future and it is a promise to pay the remaining amount at the specified time. But many people have a question - how long is the validity of the pledge deed and is it mandatory to register it? We should know this at the beginning -

What is a pledge deed?

A pledge deed is a written agreement made by paying a part of the total amount in advance to the seller for the purpose of buying land, it is called a pledge deed or a pledge. On the basis of this document, the original registry document is later executed. It acts as a legal protection for both parties.

The pledge deed must be written and signed in the presence of witnesses. And both parties should keep a copy of the document. Along with this, the agreement should mention the exact description of the land, quantity, pledge amount, time limit and the date of payment of the remaining amount.

Now the question is - how long is the validity of the pledge deed? The current law does not mandate a specific term for a deed of sale. However, it is generally customary to complete the original registration within six months. And if both parties want, they can set a contractual term. And if necessary, the term can be extended up to one year through an agreement. However, after the term expires, a new deed of sale or a settlement agreement can be made. And if one party does not want to extend the term, the other party can legally file a case. For this, you should seek the advice of a lawyer before going to court.

Now the question comes - is the registration of a deed of sale mandatory? According to the law, the registration of a deed of sale is not mandatory. However, if registered, the document becomes stronger as evidence in court in the future. Therefore, even if a deed is made without registration, it is considered a legal document. However, more documents and evidence are required to prove it.

Find out how much does it cost to register a deed of sale?

The cost of registering a deed of sale depends on the value of your land. Usually, a deed of sale is written with a stamp of 200-300 taka. And if you want to register, you have to pay a registration fee of about 1 percent and other expenses. For this, you should contact the local sub-registry office to know the specific costs.

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