Dubai Land Department (DLD) offers property buyers the option to purchase a property on a mortgage. Selling a regular property requires transactions between the buyer and seller. However, selling a mortgaged property requires the seller to meet specified requirements and register the sale.
The main requirement to complete the sale procedure is a mortgage release letter from the bank. That said, DLD’s service to register the sale of a mortgaged property helps protect the rights of buyers and sellers.
Let’s go through the procedure and required documents to register the sale of mortgage property.
All about Request to Register the Sale of a Mortgage Property
DLD’s service to register mortgaged property sales protects the rights of sellers and buyers. Besides, it restricts the mortgaged property transfer until complete payments are made to the bank.
It is to be noted that one can sell the mortgaged property only after a release letter from the bank. Let’s go through the complete process and requirements for registering the sale of a mortgaged property in Dubai.
Required Documents
Applicants need to submit the following documents when filling up the ‘Sale of Mortgaged Property Form’:
- Emirates ID or passport copy
- Debit certificate or a letter from the developer mentioning the remaining amount
- The following Manager’s cheques will be required from the buyer:
- Debt value cheque in the name of the bank or developer
- Cheque in the name of the seller (with the remaining amount if there is any left)
- Cheque with 4% sales fees in the name of DLD Dubai
- Power of attorney if the applicants aren’t present
Process
The procedure to register the sale of a mortgaged property in Dubai requires applicants to complete the following steps:
- Seller and buyer should visit the Real Estate Registration Trustee offices to restrict the property for sale.
- Applicant submits the complete set of documents and ensures that they are stored in the digital system.
- The transaction data is complete and entered into the system. Data must be verified by the DLD employee as well.
- After the submission of documents and data entry, the customer needs to pay the fees, and they will receive the receipt via email.
- After the DLD’s verification, the real estate registration certificate is sent via email to the buyer and seller. Additionally, the bank’s debit certificate is delivered to the seller to complete the procedures.
- The seller can complete the sale of the mortgaged property after receiving the mortgage release certificate.
- After the buyer or seller submits the mortgage release letter, they can complete the property ownership transfer easily.
Fees
With the availability of different mortgage types in Dubai, it has become easy to buy a property on a mortgage. However, selling a mortgaged property can become a hassle. You need to pay specified fees for registration of a mortgage in Dubai. In the same way, you will be required to pay the fees when you register for the sale of the mortgaged property.
Applicants need to pay the following fees to request registration of the mortgaged property sale:
- Restricting the property: AED 1,000
- Knowledge fees added with each fee: AED 10
- Innovation fees added with each fee: AED 10
- Registration Trustee Fees: AED 525
- Mortgage Release Fees: AED 1,290
- Registration Trustee Fees to Release the Mortgage: AED 315
- To complete the sale procedure: 4% of the sale value
- Registration trustee fees for the sale procedure depend upon the value of the property and will be as followed:
- If the value is less than AED 500,000, the fees will be AED 2,100;
- For values equal to or above AED 500,000, the fees will be AED 4,200
- Land Map Fees ( for the lands not subject to the Dubai Municipality): AED 100
- Land Map Fees for the unified map: AED 325
- For buildings and apartments: AED 250
- Title deed fee: AED 250
- Mortgage fee (if any): 0.25% of the mortgage value
Payment Methods
The customers can pay all the fees via the following payment methods to register the sale of a mortgaged property:
- Noqodi
- ePay
- Dubai Pay
- Manager Cheque to DLD
That wraps up the complete process, required documents and fees to register the sale of the mortgaged property in Dubai. Therefore, when you buy an apartment in Dubai or any other property on a mortgage, ensure that you follow the registration processes. That said, these processes will ease the real estate transactions for you.
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