Mortgages in Dubai: registration, consent and transfer between banks

A bank loan on a Dubai property is secured by a registered mortgage. This guide summarises what the Dubai Land Department (DLD) says about registering and transferring one.

According to DLD, a mortgage held as security for a debt is valid only if it is registered at DLD. Any agreement to the contrary is void. The mortgagor, who is the owner or the owner's legal representative, must be the owner of the property and qualified to deal with it.

Unless the two parties agree otherwise, the mortgagor bears the costs of the mortgage contract.

The mortgage includes the attachments of the property, including buildings, plants and later developments. A mortgage can also cover several properties in one entry, which DLD calls a mortgage portfolio, and it is possible to mortgage part of a property.

The owner cannot deal with a mortgaged property without the bank's consent, which transfers responsibility for the mortgage payments to the new owner. A mortgage can be transferred from one financier to another if the bank gives a No Objection Certificate.

A mortgaged property can also be sold at auction with the bank's certificate for the mortgage redemption, or by a court decision.

The owner may manage the property and receive its revenue. If the owner does not pay the instalments due, the property can be seized and sold at public auction by a court decision.

A developer can mortgage a project to obtain a loan, provided the value of the mortgage is deposited in the project's escrow account.

0% income tax and 0% property tax*: the UAE does not levy income tax on individuals, and income from real estate held in a personal capacity, without a commercial licence, is outside UAE Corporate Tax.

*T&Cs apply.

An iRealtor advisor can explain the steps and shortlist homes in Abu Dhabi and Dubai, including off-plan launches.

This article is general guidance, not tax, legal or financial advice.