Loading…
Nadia has signed Contract F to sell her Dubai Marina apartment, which is still mortgaged to her bank, to a cash buyer. What does the DLD procedure for selling a mortgaged property require at transfer?
The issue is how a sale completes while a mortgage is outstanding. The DLD service card for registering the sale of a mortgaged property (as at 12 Oct 2026) requires a bank liability letter showing the remaining debt and manager's cheques: one to the bank for the debt, one to the seller for the balance and one for the DLD fees; the bank's release letter then completes the file. The debt is paid off from the price at transfer, so Nadia need not clear it before signing Contract F. A mortgage does not simply pass to the buyer: under Article 10 of Law No. 14 of 2008 a mortgaged property can be sold with the mortgage in place only with the bank's approval and the buyer's assumption of the obligations. Source: DLD e-service 'Registering the Sale of a Mortgaged Property', dubailand.gov.ae (as at 12 Oct 2026); Law No. (14) of 2008 Concerning Mortgage in the Emirate of Dubai, Arts. 10 and 20 (in force 12 Oct 2026).
Thinking the seller must clear the loan from her own funds before she can sign, when the payoff is made from the price at the trustee office.
Practice more Dubai RERA Sales Transactions, Transfers & DLD Fees questions
Exam-style questions with worked answers, then full timed mocks. Free to start.
Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.
Start practising →Original study material mapped to the public exam domains; not a real test question.Independent. Not affiliated with DLD, RERA or DREI. Verify figures and rules against current guidance before relying on them.