From our London office (Holborn Gate, 330 High Holborn, London WC1V 7QH) we provide high‑level guidance for international investors and lenders exploring mortgage or real‑estate secured lending in Bangladesh. The note is intended as a general roadmap highlighting common legal, regulatory and commercial issues; it is not a substitute for jurisdiction‑specific advice and local counsel should be engaged early in any transaction.

Overview for international borrowers and lenders

Property finance across borders typically involves two parallel tracks: (1) the commercial loan terms negotiated between borrower and lender (interest, term, currency, covenants, guarantees) and (2) the local law security package required to secure repayment and facilitate enforcement in the jurisdiction where the property is located. For property in Bangladesh, local property law, land title systems and registration requirements will determine what security can be taken and how it is perfected.

Key legal and regulatory considerations

• Title and ownership: Establish whether the land is freehold, leasehold or subject to statutory tenure. Confirm the identity and capacity of the owner and whether there are third‑party rights affecting the asset.
• Permitted security: Determine which forms of security are recognised (mortgage, charge, hypothecation, assignment) and whether foreign entities may hold registered title or take security over property.
• Registration and priority: Local registration is generally required to perfect mortgages and preserve priority. Timely registration is essential to avoid subsequent encumbrances taking precedence.
• Foreign exchange and capital controls: Cross‑border repayment, repatriation of proceeds and funding in foreign currencies may be subject to central bank rules. Verify compliance with applicable exchange control requirements.
• Tax and stamp duty: Acquisition taxes, stamp duty on loan and security documents, registration fees and potential withholding tax on payments can materially affect pricing and structure.
• Enforcement practicalities: Assess enforcement routes (court‑led possession/foreclosure, out‑of‑court remedies) and the likely timeframes and costs for realising security.
• Anti‑money laundering and sanctions: Lenders must satisfy KYC/AML requirements and consider any sanctions exposure arising from counterparties or underlying beneficial owners.

Practical process and core documentation

Typical stages include pre‑transaction due diligence, negotiating the finance documents, completing local registration and putting in place ancillary matters (insurance, property management, completion mechanics). Core documents often comprise:

• Facility agreement (commercial terms, representations, covenants)
• Security documents (mortgage/charge, assignment of leases, fixtures and fittings charges)
• Guarantees and intercreditor agreements (if multiple creditors)
• Legal opinions from local counsel on capacity, enforceability and registration
• Escrow or account control arrangements for cash flow management and repayment

Practical checklist

1. Engage reputable local counsel early to confirm permitted security and registration steps.
2. Obtain up‑to‑date title searches and searches for encumbrances or pending litigation.
3. Confirm foreign exchange rules for loan funding and repatriation of proceeds.
4. Quantify taxes, stamp duties and registration fees; build these into pricing and closing mechanics.
5. Obtain local legal opinions addressing validity, perfection and enforcement of security.
6. Design enforcement and workout options consistent with local court practice.
7. Ensure robust AML/KYC and sanctions screening for all counterparties and beneficial owners.

Jurisdiction and sources

Matters concerning property, registration, foreign exchange and taxation are governed by local law; for authoritative guidance consult official sources including:

• Bangladesh Bank (central bank rules on foreign exchange)
• National Board of Revenue (tax and duty guidance)
• Ministry of Land / local land registration authorities (title, registration and land records)
• UK Foreign, Commonwealth & Development Office (FCDO) — country guidance for commercial travellers and general country risk

Engaging UK and Bangladesh counsel in parallel will help align international financing terms with local perfection and enforcement requirements.

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