Guide to Selling Mortgaged Property in Dubai
Are you considering selling your mortgaged property in Dubai? Understanding the process is essential for a smooth transaction. Here’s a guide to help you navigate the process and fees involved in selling mortgaged property in Dubai, including off-plan properties.
Can You Sell Mortgaged Property in Dubai?
Yes, homeowners in Dubai can sell their mortgaged property before fully paying off the mortgage. However, knowing the procedures is crucial for a successful sale.
The Process of Selling Mortgaged Property in Dubai
- Apply for a Liability Letter from the Lender: Begin by obtaining a liability letter from your bank, which outlines the outstanding amount on the property.
- Obtain an NOC from the Developer: Next, secure a No Objection Certificate (NOC) from the developer to confirm there are no outstanding payments for service charges.
- Block the Property in the Buyer’s Name: Visit a Dubai Land Department (DLD) registration trustee’s office with necessary documents to block the property in the buyer’s name, ensuring protection for the buyer.
- Obtain Clearance Letter and Original Title Deed: Once the buyer clears the seller’s mortgage, the bank issues a property mortgage release letter and the original title deed to the seller.
- Transfer the Property in the Buyer’s Name: Both parties visit the DLD registration trustee’s office again for the transfer of ownership. Here, the seller’s mortgage is released, and a new title deed is issued in the buyer’s name.
- Selling Mortgaged Off-Plan Property in Dubai: For off-plan properties, consult the developer regarding any selling restrictions before a certain percentage of the payment plan is paid off. Sellers may need an NOC from the Dubai Land Department, with potential variations in associated costs compared to ready properties.
Applicable Fees When Selling Mortgaged Property
Consider the following fees when selling mortgaged property in Dubai:
- Early settlement fee
- Blocking charges
- Mortgage release fee
- NOC fee
Additional charges may apply depending on the circumstances.
Frequently Asked Questions
- How to Impose Restriction on Mortgaged Property in Dubai?
To impose a restriction, follow the procedure outlined on the DLD’s website, which involves submitting required documents, verifying transaction data, paying the fee, and receiving a receipt.
- What Documents are Required to Restrict Mortgaged Property in Dubai?
Required documents include a debit certificate or letter from the developer, Emirates ID card, passport copy (for non-residents), manager’s cheques, and power of attorney if applicable.
- What is the Fee to Block a Mortgaged Property in Dubai?
Fees for blocking a mortgaged property include property blocking charges, knowledge fees, innovation fees, and trustee registration fees.
Whether you’re selling a ready property or an off-plan property in Dubai, understanding the process and associated fees is crucial for a successful transaction. With this guide, you’re equipped with the knowledge to navigate the selling process smoothly.
