Mortgage Registration in Dubai

Mortgage registration is required in cases where the property is financed through a bank or other licensed financial institution. In such financing arrangements, one of the parties in the transaction becomes the financing entity (the mortgagee), and the property is legally pledged as collateral until the debt is fully repaid. Under Law No. 14 of 2008 Concerning Mortgages in the Emirate of Dubai, the mortgagee must be a bank or financial institution licensed to operate in the UAE. Both UAE citizens and foreign residents or non-residents may register a mortgage, provided that the lender is duly licensed and the financing contract corresponds to DLD’s requirements. The registration process ensures legally binding and enforceable rights by doing the following: The financing entity obtains a legal right over the property, which gives it priority over ordinary creditors and lower-ranking claims, should the owner default. The property becomes encumbered, meaning that it cannot be lawfully sold, transferred, or mortgaged further in certain ways without the mortgagee’s consent, as long as the mortgage is recorded in the DLD property register. The registration gives public notice (via the DLD register) of the mortgage, allowing third parties to see that the property is under mortgage. This protects the rights of the mortgagee. EGSH verifies the applicant’s status, reviews the lending bank’s documents, and ensures that the file submitted complies with DLD mortgage regulations.

DLD mortgage registration covers several categories of mortgages: — First-degree mortgages, which secure the initial loan on a property; — Second-degree mortgages, which are subsequent loans registered on already mortgaged property; — Usufruct mortgages, which secure financing based on a long-term usufruct right; — Provisional mortgages, which apply to off-plan properties under Oqood. Each type is subject to the same core legal framework, ensuring that the rights of the financing entity are protected. EGSH confirms the correct classification in advance and manages the whole submission process in accordance with DLD rules.

The Dubai Land Department registration fees include 0,25% of the mortgage value. Additional government charges include AED 250 for each Title Deed issued, as well as AED 10 knowledge fee and AED 10 innovation fee for each drawing. Service partner fees also apply: AED 4,000 plus VAT for ordinary mortgage registrations and AED 5,000 plus VAT for provisional (Oqood) mortgages. These fees are paid through official DLD channels such as ePay, Sadad Dubai, Noqodi, or a manager’s cheque. EGSH provides applicants with a full cost breakdown before submission.

The mortgage registration process at the DLD is typically completed within 20 to 25 minutes, provided that all required documents are accurate and complete. Applications submitted by banks are pre-audited by the lender before being uploaded through the online mortgage system, while trustee centres process them directly. The DLD system automatically deducts applicable fees and issues outputs electronically. EGSH ensures that all mortgage contracts, bank letters, and supporting documents are correct, preventing delays and ensuring that the mortgage is registered in the shortest timeframe allowed by law.

Property mortgage registration in the UAE is available to non-resident foreigners, provided that the financing is obtained from a bank or financial institution licensed to operate in the UAE. However, not all banks extend mortgage facilities to non-residents — eligibility is subject to each bank’s internal lending policy and approval criteria.

Upon successful registration, the Dubai Land Department issues a set of official electronic documents that serve as proof of the mortgage: a Certificate of Title or Title Deed, a Usufruct Title Deed in cases involving usufruct rights, a Statement Certificate, and, for off-plan properties, a Provisional Sale Registration Certificate (Oqoodi). These documents confirm that the mortgage has been legally recorded in favour of the financing entity and are delivered electronically to the property owner and the bank.

An unregistered mortgage has no legal effect under Dubai property law. This means that the lender’s rights cannot be enforced in the event of default, and the mortgage is effectively invalid. For this reason, DLD requires all financed property purchases to be accompanied by an official mortgage registration.

Property owners living abroad can still complete property mortgage registration in the UAE through an authorised representative holding a valid power of attorney. EGSH ensures that overseas applications are filed correctly with the Dubai Land Department in compliance with official regulations.

Corporate entities, such as Limited Liability Companies and sole proprietorships, can register a mortgage in Dubai. The registration requires submission of corporate documents, including a valid trade licence, the Memorandum of Association with annexes attested and translated into Arabic if issued abroad, and a notarised board resolution authorising the mortgage. EGSH verifies these documents, prepares the application in accordance with DLD regulations, and completes the registration on behalf of the company.

Once the loan is fully repaid, the financing bank issues a clearance letter confirming settlement. The clearance must be registered with the Dubai Land Department to formally deregister the mortgage and remove the encumbrance from the Title Deed. Until deregistration is completed, the mortgage remains recorded in the property register regardless of repayment. EGSH submits the clearance, processes the official fees, and ensures that the Title Deed is updated in compliance with DLD regulations.