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UK INSIGHTS · ENGLAND & WALES

Covenants and Easements in Bangladesh

Comparative briefing on covenants and easements in Bangladesh for international clients and advisers, highlighting practical due diligence, enforceability issues and drafting considerations from a London perspective.

Covenants and Easements in Bangladesh — TRW & Co UK branch
TRW & Co · UK branch · London

This note, prepared by our London office (Holborn Gate, 330 High Holborn, London), summarises how covenants and easements are conceptualised and enforced in Bangladesh and compares them with principles commonly applied in England and Wales. It is intended for lawyers, in-house counsel and investors who need a high‑level, practical framework for due diligence, negotiation and drafting in cross‑border property transactions.

Overview: nature and classification

Broadly speaking, an easement grants one landowner a right to use another’s land for a specified purpose (for example, a right of way, light or drainage). Covenants are contractual promises that can be either positive (requiring an action) or restrictive/negative (prohibiting an action). Under many South Asian legal systems that trace their roots to nineteenth‑century statutes, including the Transfer of Property Act 1882 as applied in Bangladesh, the distinction between proprietary (capable of binding successors in title) and personal rights (binding only the contracting parties) is central to enforceability and registration.

Key practical differences and points of friction with England and Wales

  • Registration regime: In England and Wales, the Land Registration Act 2002 and HM Land Registry create a largely title‑based system where many interests are protected by notice or registration. In Bangladesh, registration practices, land records and the mechanisms for creating proprietary interests may differ substantially; absence of centralised title records can affect priority and search strategies.
  • Form and creation: Both systems recognise express easements and covenants created by deed or agreement, but the statutory formalities and consequences for non‑registration vary. Implied easements and prescriptive rights evolve through long use; the evidential threshold and judicial approach can differ.
  • Remedies and enforcement: Remedies available (injunction, damages, specific performance) are broadly similar in principle, but procedural routes, timelines and costs can be materially different. Enforcement against successors in title depends on whether the interest is treated as proprietary.
  • Scotland: property law in Scotland is distinct and not directly comparable; advisers should treat Scottish transactions separately.

Practical considerations for cross‑border transactions

When a transaction involves Bangladesh land or parties, international advisers should:

  1. Confirm status of the interest: is the covenant or easement expressed to bind successors in title, and is it registrable under local law?
  2. Investigate local land records and historic conveyancing to verify creation and any prior interests or encumbrances.
  3. Consider remedies and practical enforcement: assess whether injunctive relief is realistically obtainable and whether damages or negotiated commercial accommodation are more practicable.
  4. Draft carefully: use clear grant, reservation and definition language; include survival and enforcement clauses that anticipate changes of title and use.

Practical checklist

  • Obtain certified copies of the original instrument(s) creating the covenant/easement.
  • Carry out title and encumbrance searches against both dominant and servient tenements.
  • Assess whether the interest has been registered or recorded with local authorities and whether any local approvals are required.
  • Review risk allocation in transaction documents: indemnities, warranties, completion mechanics and escrow arrangements.
  • Plan for dispute resolution: consider forum, governing law and whether interim relief is available locally.

Jurisdiction and sources

  • Transfer of Property Act 1882 (as applied in Bangladesh)
  • Registration Act 1908 (Bangladesh)
  • Bangladesh Supreme Court decisions and published law reports
  • Ministry of Law, Justice and Parliamentary Affairs (Bangladesh)
  • Law Commission (England and Wales); HM Land Registry; Law of Property Act 1925; Land Registration Act 2002

Comparative awareness and robust due diligence are essential when dealing with covenants and easements across jurisdictions. Early engagement with local counsel and a clear contractual allocation of risk will improve predictability and commercial outcomes.

General information only; not legal advice and not a substitute for advice on a particular matter.

TRW & CO · UK BRANCH

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General information only; not legal advice and not a substitute for advice on a particular matter. The law and guidance can change, and Scotland and Northern Ireland may differ.