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LAW NO. (14) OF 2008


Concerning Mortgages in the Emirate of Dubai




WE, Mohammed bin Rashid Al Maktoum, Ruler of Dubai


After taking cognisance of Federal Law No. 5 of 1985 regarding civil transactions,
as amended;


Federal Law No. 8 of 2004 regarding financial free zones;


Law No. 7 of 2006 regarding real estate registration in the Emirate of Dubai;


Regulation No. 3 of 2006 designating the areas in which non-UAE nationals may own freehold property in the Emirate of Dubai;


Law No. 8 of 2007 concerning real estate development trust accounts in the Emirate of Dubai;


Law No. 27 of 2007 on ownership of jointly owned properties in the Emirate of Dubai; and


Law No. 13 of 2008 regulating the interim real estate register in the Emirate of Dubai


Issue the following Law:




Article (1)


This Law shall be called "Law No. (14) of 2008 Concerning Mortgages in the Emirate of Dubai"..




Article (2)


The following words and expressions shall have the meanings set out opposite them unless the context otherwise requires:


Emirate: Emirate of Dubai
Department: Department of Lands & Properties.
Head: Head of the Department.
Property: Land and permanent structures erected on it which may not be moved without suffering damage or alteration.
Property Unit: The subdivided part of the Property including any subdivisions shown off-plan.
Real Estate Register: A set of documents kept in written or electronic form at the Department which provide an up-todate record of real rights in Property.
Interim Real Estate Register: A set of documents kept in written or electronic form at the Department in which all contracts for the sale of Property and other legal dispositions off-plan are recorded first before being transferred to the Real Estate Register.
Mortgage: A contract whereby a creditor acquires security over Property or a Property Unit for the repayment of his debt, ahead of ordinary creditors and lower ranking creditors, from the value of the Property wherever located and by whomsoever held.
Mortgagor: The owner of the Property or the holder of the right in-rem or personal right under the contract of sale signed with the owner of the Property which is marked as sold off-plan and is registered in the real estate register or the interim real estate register.
Mortgagee: A creditor who lends money to a mortgagor against the security of Property that exists ipso facto or ipso jure.


Article (3)


The provisions of this Law apply to the Mortgage of Property and Property Units as security for debt. It makes no difference whether the debt is secured by a charge over the whole of the Property or over an undivided interest therein or by right in-rem or personal right over a Property marked as sold off-plan.


Article (4)


The Mortgagee/creditor should be a bank, company or financial institution that is duly licenced and registered with the UAE Central Bank to provide finance for Property in the UAE.


Article (5)


  1. The Mortgagor must be the owner of the Mortgaged Property or Property Unit and in a position to dispose of the same.
  2. The Mortgagor can be the debtor or guarantor in rem who executes a Mortgage on behalf of the debtor.
  3. Subject to Articles 22, 23 & 24 of this Law, a Mortgage over Property or a Property Unit must be shown to exist ipso facto or ipso jure off-plan when the Mortgage is made.
  4. A Mortgage may only be created over Property or a Property Unit that is capable of being disposed of.

Article (6)


A Mortgage includes all appurtenances to the Property or Property Unit including buildings, plants, assigned/apportioned properties and any improvements made after the Mortgage contract.


Article (7)


  1. A Mortgage is not valid unless it is registered with the Department and any agreement to the contrary is void.
  2. The Mortgagor shall bear the costs of the contract unless otherwise agreed by the parties.

Article (8)


  1. Mortgage applications shall be filed with the Department and shall be signed by the Mortgagor and Mortgagee or the guarantor in rem, if any, including the following particulars:

    1. All information related to the Property
    2. Value of the Property
    3. Value of the debt
    4. Mortgage term
    5. Personal details of the Mortgagor, Mortgagee and guarantor in rem including domicile and place of residence.
  2. The mortgage contract shall be signed using the standard form of the Department and the Real Estate Register or Interim Real Estate Register, as the case may be, shall be updated accordingly. The ranking of the Mortgage is determined by its date of registration.
  3. The Department shall give the contracting parties a mortgage deed bearing the signature of the competent officer and the seal of the Department.
  4. The mortgage deed can be in electronic form and is admissible as evidence on the same basis as a written mortgage deed.

Article (9)


The Mortgage must secure a debt that is owing or promised at the conclusion of the Mortgage.




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MENA Properties Highly Commended Award 2013-2014National Association of Realtors
MENA Properties Highly Commended Award 2013-2014National Association of Realtors