Bangladesh Passes Property Transfer Amendment Bill 2026

Published: September 7, 2026 · Source: BBC

Bangladesh's National Parliament has passed the Transfer of Property (Amendment) Bill, 2026, introducing significant reforms to the country's property gifting and transfer framework. The legislation, which has sparked widespread public discourse, introduces a groundbreaking provision allowing property donors to retain full usage and enjoyment rights over gifted assets for the remainder of their lives. This marks a fundamental shift from the previous legal framework where ownership and possession transferred immediately upon registration of the gift deed. The amendment addresses longstanding concerns among elderly property owners who wished to transfer assets to heirs during their lifetime for succession planning but feared losing their residence or income source. Under the new law, a donor can execute a gift deed while explicitly reserving the right to occupy, cultivate, or derive rental income from the property until death. Legal experts note this creates a "life estate" concept previously absent from Bangladeshi property law, blending elements of gift and trust mechanisms. The bill also clarifies procedural requirements for such conditional gifts, mandating explicit reservation clauses in the deed and registration under the Registration Act. It establishes safeguards against fraudulent reservations and defines the donee's remainder interest protection. Parliamentarians debated potential misuse for tax evasion or creditor avoidance, leading to inclusion of anti-abuse provisions allowing courts to disregard reservations made with fraudulent intent. Property lawyers anticipate increased gift deed registrations as families utilize this tool for smoother intergenerational transfers. However, they caution about stamp duty implications and potential disputes over maintenance responsibilities during the donor's lifetime. The law takes effect upon presidential assent and official gazette notification, with transitional provisions for pending cases.

Key Highlights

• Donors retain lifetime usage rights over gifted property under new amendment
• Creates legal framework for life estate concept in Bangladeshi property law
• Requires explicit reservation clauses in gift deeds with registration safeguards
• Includes anti-abuse provisions against fraudulent creditor or tax avoidance
• Expected to increase gift deed registrations for succession planning

Source: BBC

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property lawparliamentinheritancelegal reformgift deed