The Dubai Land Department (DLD) has stated that if the land of a development project is mortgaged by a bank operating in the UAE, buyers and real estate investors must provide a “No Objection” letter issued by the concerned bank to obtain financing facilities for the real estate unit within the same project.
In a circular issued by the DLD, it was announced that amendments have been made to all real estate transactions related to mortgaged lands for projects after the completion of construction, as per the following details:
- The real estate unit will not be restricted for the purpose of a mortgage if the project’s land is mortgaged.
- A “No Objection” letter issued by the concerned bank must be provided.
The DLD clarified that in the absence of this certificate from the financing/mortgaging entity, the department may proceed with the procedures based on a declaration from the developer proving that they have contacted the bank but did not receive a response within 7 days.
It emphasized that these amendments aim to simplify procedures for real estate developers, contributing to the faster completion of transactions. Additionally, they provide banks and financial institutions with flexibility in managing mortgages while ensuring a clearer financing process for investors. This supports confidence and sustainability in the real estate market.
photo credit: mediaoffice.ae
