How to Sell Mortgaged Property in Dubai

If you have decided to sell your mortgaged property in Dubai, the first step is to find a buyer. dubizzle can help you find a buyer within no time. Once you have a seller, read and sign Form F (MOU) for complete information on the selling deed and the steps involved. After signing it, the following process needs to be followed. 

1. Apply for Liability Letter and NOC

   After signing Form F, sellers must acquire a liability certificate from their respective banks in Dubai that provided the mortgage. This letter will state the mortgage amount that still needs to be paid by the seller. Along with this, a No Objection Certificate (NOC) is also required from the developer. These documents will help identify the remaining costs and charges that must be paid. 

2. Block the Property

   The process of property blocking is included to protect the rights of a buyer. The process permits buyers to clear the mortgage on the property when purchasing an apartment or villa for sale in Dubai. Whereas it restricts sellers not to sell this property to any other individual. To complete this process, all the involved parties must visit the Dubai Land Department (DLD) registration office.
   
   
   Here is the list of documents required for blocking a property:
   
   * From F (MOU)
   * Seller’s bank liability letter
   * NOC from developer
   * Title deed (copy)
   * Cheque in the name of the bank (amount needs to be paid to the bank)
   * Cheque to the seller (amount seller has already paid)
   * 4% transfer fee to DLD in terms of cheque
   * Buyer’s and seller’s original visas, passports and Emirates ID
   * DLD also provides options to pay through ePay, Dubai Pay and Noqodi
   
   It is important to note that this step will be excluded if the buyer purchases property on a mortgage. The original title deed will be transferred to the bank’s name till the buyer fully pays the mortgage. The service charges included in blocking the property are mentioned below:
   
   * AED 1000 for blocking property
   * AED 10 is charged as a knowledge fee
   * AED 10 is charged as an innovation fee
   * AED 500 for trustee registration

3. Original Title Deed and Clearance Letter

   After signing and paying the transfer fee to the DLD, buyers must submit their cheques to the respective bank. Once their cheques are cleared, the bank will issue a release letter and a mortgage clearance letter. After this letter, the buyer will be provided with the original deed of the property by the bank. 

4. Transfer the Property

   Buyers and sellers are required to visit the DLD office in the final step of selling mortgaged property in Dubai. In this last step, the ownership of the property is transferred from the seller to the buyer, and a new title deed is issued. The documents required for this final step are a mortgage release letter, passport, visa, Emirates ID and title deed (original). 
   
   This process is applicable when the buyer is paying in cash. If the buyer is purchasing property on a mortgage, loan approval is necessary before further proceedings. Also, the new deed will be in the name of the bank rather than any individual.