How a mortgaged sale works
The Dubai Land Department has a dedicated procedure for registering the sale of a mortgaged property. In outline:
- Get a liability letter from your bank. It states the exact amount needed to clear the loan, including any fees. Banks give it a validity date, so you may need an updated one close to transfer.
- Agree terms with the buyer and sign the standard sale agreement (Form F), including how the bank will be paid and who pays which fees.
- Obtain the developer's No Objection Certificate, which normally requires service charges to be paid up to date.
- Attend a Real Estate Registration Trustee office. The Dubai Land Department lists three manager's cheques for this step: one to your bank for the debt, one to you for the remaining balance, and one to the Department for the 4% transfer fee.
- Mortgage release and transfer. After your bank's mortgage release letter is submitted, the release, the sale and any new mortgage for the buyer are completed, and the new title deed is issued.
We Buy Dubai never holds buyer or seller funds. Payments are made through the transaction's normal channels at the trustee office.
Mortgage-related costs
These are the costs that come specifically from selling with a mortgage, alongside the usual sale costs.
| Cost | Amount | Notes |
|---|---|---|
| Early settlement fee | Up to 1% of the outstanding balance or AED 10,000, whichever is less | The Central Bank cap; check your own loan agreement for the exact terms |
| Mortgage release (Dubai Land Department) | AED 1,290, plus AED 315 for the registrar to release the mortgage | As listed on the Department's service page, alongside small knowledge and innovation fees |
| Liability letter and clearance letters | Varies by bank | Ask your bank for its current charges |
| Transfer fee | 4% of the sale price | Listed by the DLD as 2% seller and 2% buyer; the parties often agree the buyer pays all of it |
| Trustee registration fee | AED 4,200 at AED 500,000 and above; AED 2,100 below | Who pays is agreed between the parties |
When your buyer also has a mortgage
If your buyer is borrowing, two banks are involved: yours, which needs to be paid off and release its mortgage, and theirs, which must value the property, approve the loan and register a new mortgage. That coordination is the most common source of delay in Dubai sales.
The buyer's bank valuation also matters. If it comes in below the agreed price, the buyer has to cover the gap or renegotiate. A buyer paying from their own funds removes both steps, which is explained in our guide to selling to a cash buyer.
If the sale price won't cover the loan
Your bank will only release its mortgage when the debt is settled. If the property is worth less than you owe, you need to cover the difference or agree an arrangement with the bank before a sale can complete. Our guide to selling a distressed property covers arrears and negative equity in more detail.
Off-plan property with a developer payment plan
If you still owe money to the developer rather than a bank, the Dubai Land Department accepts a letter from the developer stating the remaining amount in place of a bank liability letter. The developer's resale conditions and fees also apply.
Tool
How much goes to your bank?
Enter your outstanding balance. The estimate adds the maximum early settlement fee the Central Bank allows and the DLD release fees.
- Outstanding balanceAED 600,000
- Early settlement fee (maximum)AED 6,300Capped by regulation Lower of 1% of the balance or AED 10,000, plus 5% VAT
- DLD mortgage release feesAED 1,605Fixed by authority AED 1,290 release procedure + AED 315 registrar fee
- Settled at transferAED 607,905
Left from the price before other selling costs: AED 892,095. Full cost calculator
Capped by regulation: banks may charge less than the maximum. Fees as published on 14 October 2026.
Documents for selling a mortgaged property
Requesting the bank documents early prevents last-minute delays.
- Bank liability letter (current, within its validity date)
- Loan account details
- Emirates ID or passport
- Title deed
- Developer No Objection Certificate
- Power of attorney, if someone will sign for you
Requirements can change. Your bank and the trustee office can confirm what applies to your transaction.
Sources
Laws, fees and procedures on this page were checked against these pages. They change, so confirm the current position for your own transaction.
- Registering the sale of a mortgaged property (Dubai Land Department)
- Registering the sale of a mortgaged property (Dubai Land Department)
- Amendments to Appendix 2 of Regulation No. 29/2011 (Notice 3986/2019) (Central Bank of the UAE Rulebook, effective 8 October 2019)
- UAE Central Bank lowers early settlement fee for mortgages (Cavendish Maxwell)
- Property Sale Registration (Dubai Land Department)
- What are the fees for transferring property in Dubai? (fäm Properties, reviewed May 2025)
Last reviewed 14 October 2026. This is general information only, not legal, financial or tax advice. Fees and requirements change, so confirm specifics for your own transaction.
Review history
- : Added the mortgage payoff estimate. Early settlement cap now cited to the Central Bank rulebook directly.
- : Transfer fee row corrected to the DLD listing (2% seller, 2% buyer); DLD sale registration source added.