How a sale with a mortgage works
Dubai Land Department has a dedicated procedure for selling a mortgaged property. The buyer's money is used first to clear what you owe the bank, and the rest goes to you. The steps run in this order.
- Ask your bank for a liability letter. The letter states the outstanding amount of your loan. It is the figure that the settlement at the trustee office is based on.
- Agree the sale with a buyer. You and the buyer sign Form F, which records the price, the deposit and the transfer date. Knowing your balance at this point lets you see what you will receive after the loan is repaid.
- Obtain the developer NOC. The developer confirms that there are no outstanding service charges or other dues on the unit.
- Pay off the debt from the sale. At the trustee office, the buyer pays the amount of the debt directly to your bank and the remaining balance to you.
- Release the mortgage. With the debt repaid, your bank issues a mortgage release letter, and DLD removes the mortgage from the property.
- Complete the transfer. Once the mortgage is released, DLD registers the sale and issues the title deed in the buyer's name.
If the buyer is also financing the purchase, their bank's new mortgage is registered as part of the same process.
Documents
| Document | Who provides it | Purpose |
|---|---|---|
| Liability letter | your bank | states the outstanding balance |
| Title deed | seller, or your bank if it holds the original | proves ownership |
| Passport, plus Emirates ID for UAE residents | seller and buyer | identity |
| Form F (MOU) | seller and buyer | sale contract |
| Developer NOC | developer | confirms no outstanding dues |
| Mortgage release letter | your bank | removes the mortgage after repayment |
| Power of attorney | seller, if represented | lets someone act for you |
Ask for the liability letter as soon as you decide to sell. Your bank sets how long it takes, so request it early enough to fit the transfer date in Form F.
Costs
A sale with a mortgage has the same costs as any other sale in Dubai, plus the cost of releasing the mortgage.
| Cost | What it is | Who pays |
|---|---|---|
| DLD transfer fee | a percentage of the sale price | split as agreed in Form F |
| Trustee office fee | the trustee centre's service fee | agreed in Form F |
| Mortgage release | DLD fees for releasing the mortgage | usually the seller |
| Early settlement | any fee your bank charges under your loan agreement | the seller |
| Developer NOC | the developer's fee for the certificate | usually the seller |
The fee amounts change over time, so we confirm the exact fees for your property when we prepare the sale with you. Your loan agreement shows whether your bank charges for early settlement. The general picture of selling costs is in our guide to selling costs in Dubai.
Cash buyer or mortgage buyer
With a cash buyer, only one bank is involved: yours. The buyer pays from their own funds, so there is no second bank valuation or loan approval to wait for, and the settlement at the trustee office is simpler to coordinate. A mortgage buyer adds their own bank, which values the property and approves the loan before the transfer. A cash proposal is usually below a listing price, so it is worth weighing the simpler path against the price. Read how a cash proposal works.
How we help
On the first call we go through your loan, the liability letter and the date you want to sell by. We present your property privately to cash buyers on our list. When you accept a proposal, we prepare Form F, coordinate the NOC with the developer, and work with your bank on the settlement and the release, so the settlement, the release and the transfer happen in the right order. The full procedure for any sale is in our guide on how to sell property in Dubai.
Frequently asked questions
Does the bank have to agree?
Your bank does not approve the buyer, but it has to take part, because it issues the liability letter and, once the debt is repaid, the mortgage release letter. Once the loan is repaid in full, the bank issues the release letter and the transfer can go ahead.
Who pays off the remaining loan?
The loan is paid off from the sale price. At the trustee office, the buyer pays the amount in your liability letter directly to your bank and the remainder of the price to you. If the price is lower than the debt, you cover the difference yourself before the transfer.
How long does mortgage release take?
It depends mostly on your bank, which issues the liability letter and later the release letter. Asking for the liability letter as soon as you decide to sell gives your bank time to issue it before the transfer date in Form F. We give you a realistic timeline once we know your bank and your balance.
What does the release cost?
DLD charges fees for releasing the mortgage, and your bank may add an early settlement fee under your loan agreement. We confirm the exact fees for your property when we prepare the sale, so you know what you will receive before you sign Form F.
Does a cash buyer speed things up?
Usually, yes. A cash buyer needs no bank valuation or loan approval, so only your own bank is involved and the settlement at the trustee office is simpler to coordinate. A cash proposal is usually below a listing price, which is the trade-off for that simpler path.
Can I sell a mortgaged property from abroad?
Yes. A representative holding your power of attorney can attend the trustee office for you, and your bank's letters can be requested remotely. A power of attorney signed outside the UAE has to be in a form that DLD accepts, so we check it with you before the sale. See selling from abroad.
Still paying a mortgage?
We will walk you through the next steps.