Registering the Sale of a Mortgaged Property in Dubai: What to Know
Published 3 months ago
Selling a mortgaged property in Dubai is not the same as selling a debt-free unit. Dubai Land Department has a dedicated service for registering the sale of a mortgaged property so the parties can reserve their rights and settle the payments due in favor of the bank.
What the Service Covers
DLD says this service allows applying to register a mortgaged property in order to pay the payments due in favor of the bank, provided that the sale procedure is completed after submitting a mortgage release letter from the bank. In practice, this means bank coordination is central to the transaction.
Where the Transaction Happens
The official DLD page says the purchaser and seller move to a Real Estate Trustee Center to register the property for sale. The transaction requires the relevant documents to be reviewed by the registrar, and it may involve manager's cheques or checks for the bank, the seller, and the Land Department depending on the structure.
Fees and Timing
DLD lists several fee components, including service fees, registrar fees, sale fees based on value, title deed fees, and map fees where applicable. The service time is listed as 15 to 20 minutes once the transaction is ready for processing.
When Power of Attorney or Company Documents Matter
The service requirements note that legal power of attorney can apply where someone is acting on behalf of one of the parties. DLD's FAQ also explains that official powers of attorney and related corporate documents must be properly accepted for transactions involving representation.
Final Note
For a mortgaged sale, the bank, buyer, seller, and trustee center all have to move in sync. Start early, confirm the bank release conditions, and make sure the payment path and documents are understood before you try to close the deal.