Can You Sell Mortgaged Property in Dubai? Yes - Here's Exactly How
Selling a property with an active mortgage is a regulated and legally recognised process under the Dubai Land Department (DLD). According to official DLD data, mortgage-backed transactions totalled AED 140.66 billion across 33,780 deals during the first 290 days of 2025, accounting for nearly 20% of Dubai’s total real estate activity within the same period. These figures confirm the growing role of mortgage-linked sales in the emirate’s property market.
This guide provides a detailed, step-by-step overview of how to sell mortgaged property in Dubai—including legal requirements, bank coordination, fees, and timelines. It outlines the three approved methods of sale and explains how to prepare documents, obtain the necessary bank and developer NOCs, and complete ownership transfer through an authorised Real Estate Registration Trustee Centre.
What Is a Mortgage Property in Dubai
A mortgage property in Dubai is a real estate asset pledged as security for a loan issued by a licensed financial institution. The property owner retains possession and usage rights but cannot sell or transfer ownership without the consent of the lender. Each mortgage is officially recorded with the Dubai Land Department (DLD) under the supervision of the Real Estate Regulatory Agency (RERA), and the mortgage note is attached to the property’s Title Deed.
This structure ensures that the mortgage process in Dubai is transparent and legally enforceable under Federal Law No. 5 of 1985 (UAE Civil Transactions Law). The law guarantees that the lender and borrower have clear, protected rights during the loan term and any subsequent sale of the property.
Legal Basis and DLD Oversight
Selling a property that is still under mortgage is fully regulated by the DLD. The Department provides a defined procedure through its authorised Real Estate Registration Trustee Centres, such as EGSH, ensuring every transaction meets official compliance requirements.
Before a sale can take place, the bank issues two essential documents:
- A liability letter, stating the exact remaining loan balance
- A No Objection Certificate (NOC), confirming that the bank permits the sale once the settlement amount is approved.
These documents are mandatory for every Dubai property sale with a mortgage. Once the mortgage is cleared, the Trustee Centre completes the title deed transfer to the buyer in coordination with the DLD system.
Why Proper Registration Matters
A mortgaged property cannot be sold or transferred informally, as the DLD system automatically blocks unauthorised transactions involving encumbered assets. Proper registration ensures that the mortgage is fully released, the bank NOC is validated, and a new Title Deed is issued free of liabilities.
This process – known as mortgage settlement in Dubai – protects all parties and provides a secure legal record of ownership. Through DLD’s digital registration network, sellers, buyers, and banks can complete the entire transaction with full transparency and verified documentation.
Sell Your Mortgage Property with EGSH
You can stop by EGSH during working hours without an appointment or book your visit at a time that suits you best.
Address
Art of Living Mall, Al Barsha 2, Dubai
Operating hours
Monday — Saturday: 9:00 am — 5:00 pm
Sunday: Closed
Understanding Your Mortgage Position
Before beginning the process of selling a mortgaged property in Dubai, it is essential to establish a clear financial picture. This means reviewing the current loan terms, collecting official bank documents, and calculating your actual ownership share (or equity) in the property. Knowing these details in advance will help you plan the sale, avoid delays with the bank, and negotiate more effectively with potential buyers.
Step 1: Assess Your Current Loan Status
The first step is to review the main components of your mortgage. Every homeowner preparing to sell should know the remaining loan balance, interest rate, repayment term, and any early settlement fees that may apply. This data allows you to determine the minimum amount required to close your mortgage and obtain the bank NOC for property sale.
You can create a simple self-assessment checklist to understand your current position.
Mortgage Self-Assessment Checklist
Step 2: Gather Key Documents
Once your loan position is clear, the next step is to obtain all necessary documentation. The most important of these is the liability letter, an official statement issued by your bank confirming the exact amount required to repay the mortgage entirely. It is usually valid for 30–60 days and takes about 5–7 working days to be processed. The liability letter is mandatory for selling a mortgaged property, as it defines the settlement amount that the buyer or their bank will pay to release the mortgage.
In addition to the liability letter, you will need other documents. They are required by the Dubai Land Department (DLD) and your Real Estate Registration Trustee to process the sale. Submitting incomplete or expired paperwork can result in rejection or delays at the registration stage.
Required Documents for Mortgage Process in Dubai
Liability Letter
Issued by your bank to confirm the exact outstanding loan balance and total settlement amount required to release the mortgage.
Bank No Objection Certificate (NOC)
Official confirmation from the lender permitting the sale upon settlement of the mortgage. This document is essential for title transfer.
Title Deed Copy
The ownership certificate issued by the Dubai Land Department. It must accurately reflect the property details and owner’s name.
Service Charge Clearance
A confirmation from the property management company or Owners Association that all community fees are paid in full.
Developer Statement or NOC
If applicable, proof from the property developer that there are no pending payments or obligations related to the unit.
DEWA Final Bill and Clearance
A certificate from Dubai Electricity and Water Authority confirming zero outstanding utility bills at the time of sale.
Emirates ID and Passport Copies
Valid identification documents are required to verify the seller and buyer during registration.
Power of Attorney (if applicable)
A legal document authorising a representative to complete the mortgage settlement or property sale on the owner’s behalf.
Step 3: Calculate Your Equity Position
Your equity is the portion of the property you truly own after accounting for all financial obligations. To calculate it, use the following formula:
Equity = Current Market Value – Outstanding Loan – Settlement Fees
For example, if your apartment is valued at AED 2,000,000, your outstanding loan is AED 1,200,000, and your settlement and service fees total AED 50,000, your remaining equity would be AED 750,000.
A professional valuation from a licensed surveyor is strongly recommended before proceeding with the sale. It ensures the pricing reflects the actual market value and helps you avoid underestimating your equity. This valuation is especially important when selling mortgaged property in dynamic market conditions, where prices can fluctuate within weeks.
Accurate assessment and documentation at this stage form the foundation for a smooth transaction later—from bank approval and mortgage settlement to final ownership transfer through an authorised Trustee Centre, offering Dubai national government services.
Why Choose EGSH for Selling Property in Dubai
VIP Service
Personal assistance and priority processing with no queues.
Affordable Fees
Official government rates with transparent, fixed pricing.
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Comprehensive range of UAE government services under one roof.
One-Visit Completion
Most procedures are completed in a single visit to the centre.
Methods of Selling Mortgaged Property in Dubai
There are three legally recognised ways to sell a mortgage property in Dubai, and each method depends on how the outstanding loan will be settled before or during the transfer of ownership.
Method 1: Cash Buyer Purchase
This is the most straightforward way to sell a mortgaged property. The buyer pays the full amount in cash, allowing the seller to settle the outstanding loan and complete the ownership transfer on the same day.
The process typically involves three managers’ cheques: one issued to the seller’s bank for the exact loan balance, one to the Dubai Land Department (DLD) for the 4% transfer fee, and the remaining amount to the seller. Once the bank confirms receipt and issues the No Objection Certificate (NOC), the DLD removes the mortgage and issues a new Title Deed in the buyer’s name. Most transactions are completed within 2 to 3 weeks.
Method 2: Buyer with New Mortgage
When the buyer finances the purchase through a new loan, both banks – the seller’s and the buyer’s – must coordinate to complete the mortgage settlement in Dubai.
The buyer’s bank first settles the seller’s remaining loan directly with the existing lender, using the liability letter as a reference. Once the seller’s mortgage is released, the DLD simultaneously registers the new mortgage in favour of the buyer’s bank and transfers the title. This dual process ensures that ownership changes hands only after both lenders have confirmed settlement.
Because of interbank coordination, this method takes longer—usually 4 to 6 weeks.
Method 3: Mortgage Transfer
In limited cases, the buyer may take over the seller’s existing mortgage with the same bank. This option – known as a mortgage transfer – is only possible when the lender approves the buyer’s eligibility under identical loan terms.
The process involves submitting full income verification, valuation reports, and a revised loan agreement reflecting the buyer as the new borrower. Once approved, the DLD amends the registration and issues a new Title Deed under the buyer’s name, while the mortgage remains active.
Although faster and cost-effective, this method applies to fewer than 5% of transactions in Dubai, as most banks prefer to underwrite new loans rather than transfer existing ones.
Key Features of Mortgage Selling Methods
01
Cash Buyer Purchase
— Full settlement is made by the buyer directly through manager’s cheques.
— The seller’s bank loan is cleared before transfer; DLD issues the new Title Deed the same day.
— Fastest option — average completion time is 2–3 weeks.
02
Buyer with New Mortgage
— Buyer’s bank repays the seller’s outstanding loan and registers a new mortgage at DLD.
— Both banks coordinate simultaneously to ensure a secure title transfer.
— Typical processing time is 4–6 weeks due to interbank verification.
03
Mortgage Transfer
— Buyer assumes the seller’s existing mortgage under identical bank terms.
— Requires full credit review and bank approval before DLD updates the record.
— Minimal additional fees but limited eligibility—under 5% of cases approved.
04
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Step-by-Step Process of Selling Mortgaged Property in Dubai
When you decide to sell property in Dubai that is still under mortgage, the transaction follows a structured, multi-stage process defined by the Dubai Land Department (DLD). Each stage involves coordination between the seller, buyer, bank, and authorised Real Estate Registration Trustee Centre. The entire process typically takes five to seven weeks, depending on the speed of bank responses and document preparation.
Week 1–2: Preparation Phase
The process begins with obtaining a liability letter from the seller’s bank, confirming the remaining loan balance. At the same time, the seller should arrange a professional property valuation through a DLD-accredited surveyor to verify the market value. Once these figures are available, the seller can calculate the total settlement amount and determine potential equity.
During this phase, it is also important to gather all supporting documents—Title Deed, Emirates ID, passport copy, service-charge clearance, and developer statement if applicable. The seller must disclose the mortgage status to any prospective buyer or agent to ensure full transparency before listing. Proper preparation at this stage shortens approval timelines later in the process.
Week 3–4: Buyer Search & Agreement
After the property is listed, the seller and buyer sign a Memorandum of Understanding (MOU), also known as Form F, which is the legally binding contract governing property sales in Dubai. For mortgaged properties, this agreement should include specific clauses on mortgage settlement, bank coordination, and the refundability of the buyer’s 10% deposit in the event of non-completion due to bank delays.
Once the MOU is executed, the buyer pays the deposit to the trustee or escrow account, and the seller submits a copy of the agreement to the bank. The bank then starts preparing for loan clearance or inter-bank coordination, depending on the chosen sale method. Clear documentation at this stage ensures a smooth transition to the financial phase.
Week 5–6: Bank Coordination
Both parties’ banks coordinate directly to finalise the mortgage settlement in Dubai. The buyer’s bank (or the buyer, if paying in cash) issues manager’s cheques to settle the seller’s liability, pay the DLD transfer fees, and release any balance to the seller. Once the seller’s mortgage is cleared, the bank issues the No Objection Certificate (NOC), confirming that the loan is fully repaid and the property is free of encumbrances.
The DLD verifies the authenticity of all bank documents through its internal system, and the Trustee Centre then schedules the transfer appointment. The date is booked only when both banks confirm readiness and all clearances — including developer, DEWA, and service-charge certificates — are valid.
Week 7: Transfer Day
On the scheduled day, the seller, buyer, and bank representatives meet at the authorised Real Estate Registration Trustee Centre. The transaction proceeds in a fixed order:
- Verification of identification documents and NOCs by the trustee officer.
- Confirmation of settlement payments and cheque handover.
- Digital submission of the transfer request to the DLD system.
- Mortgage release and title transfer approval by DLD.
Once the transaction is approved, the DLD issues a new electronic Title Deed, officially recording the buyer as the new owner. This final stage completes the title deed registration in Dubai, marking the full release of the previous mortgage and legal transfer of ownership.
Visit EGSH for VIP Service Without Queues
You can stop by EGSH during working hours without an appointment or book your visit at a time that suits you best.
Address
Art of Living Mall, Al Barsha 2, Dubai
Operating hours
Monday — Saturday: 9:00 am — 5:00 pm
Sunday: Closed
Financial Calculations and Costs of Selling Mortgaged Property in Dubai
The sale of mortgaged real estate in Dubai involves several regulated fees and settlement expenses. When selling property with a loan in the UAE, all costs must be cleared before the Dubai Land Department (DLD) issues a new Title Deed.
These costs are fixed or regulated by law and vary slightly depending on the bank and property type:
-
Dubai Land Department (DLD) Fee — 4% of the sale value
Paid at registration. Usually borne by the buyer but can be shared if agreed in the MOU. -
Bank Early Settlement Fee — 1–3% of the outstanding loan
Charged by the seller’s bank for early repayment of the mortgage. Capped under UAE Central Bank regulations. -
Bank NOC Fee — AED 1,000–5,000
Payable by the seller when obtaining the official No Objection Certificate confirming the bank’s approval for sale. -
Trustee Registration Fee — AED 4,000–5,000
Standard government fee for transfer processing through an authorised Real Estate Registration Trustee Centre. -
Agency Commission — 2% of the sale price + VAT
Payable to the brokerage handling the transaction, upon successful completion of transfer. -
Developer and Service Charge Clearance — Variable
All outstanding service or maintenance charges must be settled before the DLD allows title transfer. -
Title Deed Verification Fee — AED 250–500
Optional verification service confirming that property data and ownership details are correct prior to registration.
Realistic Calculation Scenarios
01
Scenario 1
Positive Equity
— Property Value: AED 2,000,000
— Outstanding Loan: AED 1,200,000
— Early Settlement Penalty (1%): AED 12,000
— Agent Commission: AED 40,000
— Bank and Trustee Fees: AED 5,000
Net Amount to Seller:
AED 743,000
02
Scenario 2
Break-Even
— Property Value: AED 1,500,000
— Outstanding Loan: AED 1,400,000
— Early Settlement
— Penalty (1%): AED 14,000
— Commission and Fees: AED 36,000
Net Amount to Seller:
AED 50,000
03
Scenario 3
Negative Equity
— Property Value: AED 1,300,000
— Outstanding Loan: AED 1,450,000
— Early Settlement — Penalty (1%): AED 14,500
Amount Payable by Seller to Bank:
AED 164,500
04
Scenario 4
Urgent Sale
— Property Value: AED 1,250,000
— Outstanding Loan: AED 1,100,000
— Early Settlement Penalty (1%): AED 11,000
— Commission and Fees: AED 30,000
Net Amount to Seller:
AED 109,000
How to Estimate Net Proceeds
The seller’s equity can be determined using the formula:
Net Proceeds = Sale Price – (Outstanding Loan + Bank Penalties + Trustee Fees + Agent Commission + Other Costs)
This calculation defines the exact amount receivable after all obligations are discharged. Before registration, both the bank and the DLD verify that every charge has been cleared, including mortgage penalties, NOC fees, and clearances from the developer.
At EGSH, authorised consultants assist sellers in reviewing the liability letter, confirming outstanding payments, and coordinating with both banks to ensure accurate financial closure. Once all settlements are complete, the DLD proceeds with title deed registration in Dubai, releasing the mortgage and issuing the new Title Deed in the buyer’s name.
Bank-Specific Requirements for Selling Mortgaged Property in Dubai
The sale of mortgaged property in Dubai always involves direct coordination with the financing bank. Each lender follows an internal process for issuing the liability letter, calculating the final settlement amount, and providing the No Objection Certificate (NOC) required for transfer. While the overall framework is standard under Central Bank and DLD regulations, procedural details—such as documentation format, review timelines, and approval hierarchy—may differ between institutions.
Most UAE banks require submission of a written request for the liability letter, followed by formal valuation and account verification. The letter is usually valid for a limited period, typically between 30 and 60 days, and specifies the total amount required to clear the mortgage. After the settlement funds are transferred and verified, the bank issues the NOC confirming release of the mortgage and authorising the Dubai Land Department (DLD) to proceed with the title transfer.
The duration of these procedures depends on the bank’s internal compliance and audit requirements. Conventional and Islamic lenders may also differ in the calculation of early settlement penalties and administrative fees, as each operates under separate contractual principles. In some cases, banks allow settlement through a Power of Attorney or provide digital confirmation to expedite processing; in others, original documents and in-person attendance are mandatory.
Regardless of the institution, no transaction can progress to DLD registration until the lending bank confirms full repayment and releases its charge on the property. This step is verified through the DLD’s digital mortgage system, ensuring that the mortgage has been cleared before ownership is transferred to the buyer.
At EGSH, authorised consultants coordinate with both parties’ banks to ensure that all documents meet the lender’s format and are valid at the time of submission. This prevents procedural delays and allows the sale to proceed directly to title deed registration in Dubai once the mortgage release is confirmed.
Common Challenges and How to Resolve Them
The process of selling mortgaged property in Dubai is strictly regulated, yet delays may occur when required documents are incomplete, data is inconsistent, or bank coordination takes longer than expected. Understanding the most frequent challenges allows sellers to anticipate potential complications and ensure the transaction proceeds without interruption.
Bank NOC Delays
The lender will not issue the No Objection Certificate until internal compliance checks are complete and the settlement figure is verified. Any change to the liability letter or payment routing can reset review timelines.
Buyer’s Mortgage Rejection or Delay
After signing Form F (MOU), a buyer may fail bank underwriting or face postponed approval. Without confirmed financing, DLD will not proceed to transfer; completion is deferred or the agreement must be amended per its finance clause.
Negative Equity
If market value is below the outstanding loan, the seller must arrange a shortfall payment or a bank-approved plan before transfer. Without full settlement, the mortgage cannot be released and ownership cannot change hands.
Document and Data Mismatches
Expired IDs, missing originals, or discrepancies between the Title Deed, liability letter, and valuation trigger system rejections during DLD verification. All records must match exactly the data held in DLD and the bank’s systems.
How to Sell a Mortgaged Property in Dubai in Special Situations
Certain transactions involving mortgage property in Dubai require additional procedures or third-party approvals before the Dubai Land Department (DLD) can process the sale. These situations typically involve financial hardship, court judgments, or multiple ownership rights, all of which affect how the mortgage is settled and released.
Distressed or Urgent Sales
When a property owner faces financial difficulty, job loss, or payment default, the sale is categorised as distressed. In such cases, the mortgage bank becomes directly involved in managing the process. The lender must first approve the listing and determine the minimum acceptable sale value sufficient to clear the loan. If the sale amount does not fully cover the outstanding mortgage, the bank may authorise a short sale—allowing transfer to the buyer with the seller agreeing to repay the shortfall separately.
These cases are time-sensitive and require close coordination between the bank, DLD, and the Real Estate Registration Trustee Centre handling the transaction. Until the mortgage settlement is confirmed, DLD will not approve transfer or release the property for sale.
Divorce-Related Property Sales
When jointly owned property is under mortgage and the owners are undergoing divorce proceedings, the bank will not release or amend ownership without a court order defining the distribution of rights. Both parties must consent to the sale, and the proceeds are typically divided as per the ruling or mutual agreement.
If one party is authorised to act on behalf of the other, a notarised Power of Attorney (POA) must be submitted along with the liability letter and No Objection Certificate (NOC). The DLD verifies the validity of the POA before proceeding with the mortgage settlement and registration of the new Title Deed.
Inherited Properties Under Mortgage
When the registered owner of a mortgaged property passes away, the legal heirs must first obtain a Decree of Distribution or succession certificate from a competent UAE court. This document identifies the rightful beneficiaries and their respective shares. Only after the property ownership has been formally transferred to the heirs can the bank process the mortgage release or approve the sale.
If the heirs decide to sell, the bank issues a liability letter in the estate’s name, and the DLD processes the sale through the Heirs Sale Procedure, followed by full mortgage settlement and issuance of a new Title Deed to the buyer.
Documentation Checklist for Selling Mortgaged Property in Dubai
To complete the sale of a mortgaged property in Dubai, both the seller and the buyer must prepare a verified set of documents for submission to the Dubai Land Department (DLD) through an authorised Real Estate Registration Trustee Centre. Each document must be current, legible, and correspond exactly to the information stored in the DLD and bank records.
Essential Documents Required by DLD and Banks
The core documentation is identical for all standard property sales under mortgage. It includes:
- Title Deed (original and copy) – issued by the DLD as proof of ownership; required in its most recent version, showing the mortgage note.
- Liability Letter from the Bank – confirms the remaining loan amount and specifies the exact settlement sum required to release the mortgage. Typically valid for 30 to 60 days.
- Bank No Objection Certificate (NOC) – official approval from the lender to proceed with the sale once the liability amount is cleared.
- Emirates ID and Passport Copies – mandatory for identity verification of both seller and buyer.
- Memorandum of Understanding (Form F) – the signed sale agreement registered through the Dubai Rest or Trakheesi system.
- Service Charge Clearance Certificate – issued by the property management company or Owners Association to confirm that all community fees are fully paid.
- DEWA Final Bill and Clearance – confirms that all utilities are settled prior to transfer.
These core documents must be verified by the Trustee Centre before the DLD proceeds with the registration.
Conditional or Case-Specific Documents
In certain situations, additional documents may be required depending on the ownership type or transaction circumstances:
- Power of Attorney (POA) – when the owner is represented by an authorised agent; must be notarised and attested within the UAE.
- Court Order or Decree of Distribution – required for properties under inheritance or judicial ownership transfer.
- Divorce Judgment or Settlement Agreement – for jointly owned mortgaged property being sold during divorce proceedings.
- Corporate Trade Licence and Board Resolution – for properties owned by companies, confirming the authorised signatory.
- Developer NOC – for off-plan or recently handed-over units to confirm there are no pending instalments or obligations.
Each of these documents must be in Arabic or legally translated and attested before submission to DLD.
Validity and Preparation Timeline
Most financial and administrative documents are time-sensitive. The liability letter is valid for a limited period—usually 30 to 60 days—after which the bank must issue a new version. Similarly, NOCs from the developer and Owners Association expire within 30 days if the sale is not completed.
To avoid delays, sellers should request all clearances only once a buyer is confirmed and the transaction date is scheduled.
Sell Your Mortgage Property with EGSH
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How Can Mortgaged Property Be Sold in Dubai Quickly and Legally
Selling mortgaged property in Dubai is entirely legal when conducted through the official Dubai Land Department (DLD) framework. The key to completing the process quickly lies in proper preparation, verified documentation, and registration through an authorised Real Estate Registration Trustee Centre.
EGSH, a DLD-authorised centre, manages the full process, from mortgage settlement to title deed transfer, ensuring that every stage is processed within the official DLD system.
All documents are verified on site. If any details require correction before registration, EGSH assists with title deed information update to avoid delays. In most cases, the entire sale, including mortgage release and deed issuance, can be finalised in one coordinated visit once all approvals are in place.
Frequently Asked Questions About Selling Mortgaged Property in Dubai
Can mortgaged property be sold in Dubai?
Yes. A mortgaged property can be sold legally once the outstanding loan is cleared and the bank issues a No Objection Certificate (NOC). The sale must be processed through an authorised Real Estate Registration Trustee Centre under the Dubai Land Department (DLD).
How long does it take to sell a mortgaged property in Dubai?
The process typically takes four to six weeks, depending on how quickly the bank issues the liability letter and NOC, and how soon both parties prepare the required documents.
Who pays off the existing mortgage during the sale?
The buyer (or the buyer’s bank) usually settles the seller’s outstanding loan directly with the seller’s bank using the liability letter amount. This ensures that the mortgage is cleared before ownership transfer.
What is a liability letter, and how long is it valid?
A liability letter is issued by the bank to confirm the remaining mortgage balance and the exact amount required to fully settle the loan. It is typically valid for 30 to 60 days, depending on the bank, and must be renewed if the sale process extends beyond that period.
Can I sell if I’m 3 months behind on payments?
Yes, but you must clear all overdue instalments before the sale. The bank will not issue the No Objection Certificate (NOC) until the arrears and penalties are fully settled.
What if my property value dropped 10% since purchase?
You can still sell, but you must cover the shortfall between the market value and the outstanding mortgage. Some banks may offer partial settlement or restructuring plans upon request.
Can my brother buy my mortgaged property?
Yes. Family members can purchase mortgaged property, provided the transaction follows full DLD registration and the buyer meets the bank’s eligibility requirements. All payments must go through official channels.
How do I handle tenant issues during sale?
If the property is rented, the sale does not automatically terminate the tenancy. Under Dubai Tenancy Law, the buyer must provide the tenant at least 90 days’ written notice before eviction, provided legal conditions for non-renewal or owner-occupation are met. The buyer may also choose to continue the tenancy agreement after transfer.
Is Power of Attorney accepted for mortgage settlement?
Yes, if it is notarised in the UAE or attested by the UAE Embassy abroad. The Power of Attorney must explicitly authorise mortgage release and sale registration at the Dubai Land Department.
What if the bank representative doesn’t show up at DLD?
The transaction will be rescheduled. DLD requires the physical or digital presence of authorised bank representatives to confirm loan settlement and release the mortgage before ownership can transfer.
Can I reduce agent commission for mortgaged property?
Yes, commission terms are negotiable. However, registered real estate brokers must follow RERA’s official brokerage agreement. Standard commission is around 2% of the sale price plus VAT.
Will selling affect my UAE visa status?
Selling your property does not affect your UAE visa unless the visa was linked to property ownership (e.g., investor visa). In such cases, the visa must be updated or cancelled after transfer.
Can I sell to someone taking a mortgage from the same bank?
Yes. This is called a mortgage transfer. The buyer must pass the bank’s credit evaluation and sign a new loan agreement before the DLD issues a new Title Deed.
What happens to my deposit if the buyer backs out?
If the buyer withdraws without valid reason, the seller is entitled to retain the 10% deposit as per the Memorandum of Understanding (Form F), unless otherwise specified in the contract.
How does VAT apply to the sale of mortgaged property?
Residential property sales are generally exempt from VAT after the first handover. However, commercial property transactions may be subject to 5% VAT, payable at the time of registration.
Can I negotiate the early settlement penalty with the bank?
Yes. UAE Central Bank regulations cap early settlement fees at 1% of the outstanding loan or AED 10,000 (whichever is lower). Some banks may agree to reduce or waive it upon request.
Can I sell my mortgaged property if I’m outside the UAE?
Yes, through a notarised and attested Power of Attorney. The authorised representative can complete all DLD procedures, including mortgage release and title transfer, at the Trustee Centre.
What documents are required on transfer day?
Original Title Deed, Emirates ID, passport copy, liability letter, NOC, service-charge clearance, and DEWA final bill. All documents must be valid and match DLD and bank records exactly.
Can the sale be cancelled after NOC is issued?
Only with written consent from the bank and both parties. Once the NOC is used for transfer, the process becomes irreversible, and DLD will issue the new Title Deed to the buyer.
Explained by
Randa Sameer
Real Estate Services Trustee Consultant at EGSH
Randa Sameer has over three years of experience supporting Dubai Land Department transactions and real estate registrations. Her professional focus includes compliance with DLD regulations, ownership transfers, and trustee documentation.
