How to Sell a Property in Dubai with an Existing Mortgage
Learn how to sell a mortgaged property in Dubai, including legal steps, settlement procedures, buyer financing options, and Dubai Land Department requirements.
Article Overview
1. Understanding Your Mortgage Status Before Selling
2. Selling a Mortgaged Property to a Cash Buyer
Step 1: Request a Liability Letter
Step 2: Buyer Pays Off the Mortgage
Step 3: Ownership Transfer at the Dubai Land Department
3. Selling to a Buyer with a New Mortgage
Step 1: Buyer’s Bank Assesses the Property
Step 2: Bank-to-Bank Mortgage Settlement
Step 3: Mortgage Registration & Ownership Transfer
4. Legal & Financial Costs When Selling a Mortgaged Property
5. Key Documents Required for Selling a Mortgaged Property
6. Timeline for Selling a Mortgaged Property
7. Tips to Sell a Mortgaged Property Faster in Dubai
8. List Your Property & Connect with Buyers via GoDubai Portal
Introduction
Selling a property in Dubai with an existing mortgage involves a structured process governed by the Dubai Land Department (DLD) and UAE banks. Whether you're selling to a cash buyer or another mortgage-backed buyer, understanding mortgage settlement, liability clearance, and ownership transfer is crucial.
This guide provides a step-by-step approach to selling a mortgaged property in Dubai, including documentation, legal formalities, and financial considerations.
1. Understanding Your Mortgage Status Before Selling
Before listing your property, you must determine:
The remaining mortgage balance.
Whether the buyer is a cash buyer or obtaining a mortgage.
Your bank’s requirements for property clearance.
Most lenders require that the mortgage be settled before transferring ownership to a new buyer.
2. Selling a Mortgaged Property to a Cash Buyer
Selling to a cash buyer is the simplest way to offload a mortgaged property in Dubai because the transaction does not involve a third-party lender.
Step 1: Request a Liability Letter
Contact your bank for a liability letter, which states the outstanding mortgage amount and early settlement fees.
Liability letters are valid for 15-30 days, depending on the bank.
Step 2: Buyer Pays Off the Mortgage
The cash buyer directly settles your outstanding mortgage to the bank.
Once the mortgage is cleared, the bank issues a No Objection Certificate (NOC).
🔗 Dubai Land Department NOC Guidelines
Step 3: Ownership Transfer at the Dubai Land Department
After the bank removes the mortgage lien, the property is ready for transfer.
The buyer pays the remaining purchase amount, and ownership is officially transferred.
3. Selling to a Buyer with a New Mortgage
If the buyer is obtaining a mortgage, the process is more complex as it involves two banks:
Your lender (existing mortgage bank)
The buyer’s mortgage lender (new bank)
Step 1: Buyer’s Bank Assesses the Property
The buyer applies for a mortgage pre-approval.
The buyer’s bank evaluates the property and verifies its eligibility for a loan.
🔗 How to Buy Property in Dubai as an Expat
Step 2: Bank-to-Bank Mortgage Settlement
The buyer’s bank directly settles your mortgage with your lender.
Once the mortgage is cleared, the bank issues a liability clearance.
Step 3: Mortgage Registration & Ownership Transfer
The buyer’s mortgage is registered with the Dubai Land Department.
The property is officially transferred to the new owner.
4. Legal & Financial Costs When Selling a Mortgaged Property
A. Mortgage Settlement Fees
Banks in Dubai charge an early mortgage settlement fee, typically:
1% of the outstanding loan amount (capped at AED 10,000).
Some lenders waive or reduce this fee for long-term customers.
B. Dubai Land Department Fees
🔗 Dubai Property Transaction Fees
5. Key Documents Required for Selling a Mortgaged Property
To ensure a smooth property sale, prepare the following:
✔ Original Title Deed (Held by the bank until mortgage is cleared)
✔ Liability Letter from your bank
✔ NOC from the Developer
✔ MOU (Memorandum of Understanding) signed with the buyer
✔ Valid Emirates ID & Passport
🔗 Best Areas to Buy Property in Dubai
6. Timeline for Selling a Mortgaged Property
🔗 Investment Properties in Dubai
7. Tips to Sell a Mortgaged Property Faster in Dubai
✅ Work with RERA-Certified Brokers
A licensed agent can manage negotiations with banks and buyers.
✅ Ensure the Property is Market-Ready
Conduct minor repairs and ensure the property is in good condition.
✅ Consider Partial Mortgage Settlement
Some sellers pre-pay a portion of their loan to reduce settlement fees.
✅ Price Competitively Based on Market Trends
Research similar properties for sale in Dubai to set an attractive price.
🔗 Dubai Marina Apartments for Sale
8. List Your Property & Connect with Buyers via GoDubai Portal
Looking for a secure platform to sell your mortgaged property in Dubai?
✔ Access verified buyers & investors.
✔ Find RERA-approved brokers for a seamless sale.
✔ Get real-time market insights from Dubai Land Department.
🔗 Subscribe to GoDubai Portal and connect with the right buyers today.
Conclusion
Selling a property with an existing mortgage in Dubai requires careful financial planning, bank coordination, and adherence to DLD regulations. Whether you're selling to a cash buyer or another mortgage-backed buyer, following the correct legal procedures ensures a smooth transaction.
By working with experienced real estate brokers and listing your property on GoDubai Portal, you can find qualified buyers quickly and sell your property efficiently.
