Law No. (14) of 2008
Concerning
Mortgage in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing the Civil Code and its amendments;
Federal Law No. (8) of 2004 Concerning Financial Free Zones;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Regulation No. (3) of 2006 Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai;
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the
Emirate of Dubai;
Law No. (27) of 2007 Concerning Ownership of Jointly Owned Real Property in the Emirate
of Dubai; and
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai,
Do hereby issue this Law.

Chapter One

Definitions and General Provisions

Article (1)
This Law shall be cited as “Law No. (14) of 2008 Concerning Mortgage in the Emirate of
Dubai”.

Definitions

Article (2)
The following words and expressions shall have the meaning indicated opposite each of
them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
DLD : The Land Department.
Chairman : The chairman of the DLD.
Real Property : Land and any fixed structures constructed on it which cannot
be moved without damage or alteration to its form.
Real Property Unit : A designated part of Real Property, including any part
designated on its plan
Real Property Register : A set of documents which are created or maintained by the
DLD in paper or electronic format, and which record all Real
Property rights and any variation thereto.
Interim Property Register : A set of documents which are created or maintained by the
DLD in paper or electronic format, and in which the details of
off-plan sale contracts, and other off-plan legal dispositions,
of Real Property are recorded prior to transferring them to the
Real Property Register.
Mortgage : A contract under which a creditor acquires a Real Right, in Real
Property or in a Real Property Unit, by virtue of which he
obtains preference over ordinary creditors and creditors of
lower rank, for the repayment of his claim out of the price of
Real Property, no matter in whose possession the Real Property
may be.
Mortgagor : An Owner of Real Property or a person holding a Real Right
or personal right under a sale contract signed by the Owner
of Real Property which is sold off-plan and registered in the
Property Register or Interim Property Register.
Mortgagee : A creditor who lends money to a Mortgagor against the
security of Real Property which exists physically or legally.

Article (3)
This Law shall apply to the Mortgage of Real Property or Real Property Units as a security
for debt, whether the debt is secured by the whole Real Property, by a common interest
therein, or by a Real Right or personal right in Real Property which is sold off plan.

Article (4)
A creditor-Mortgagee must be a bank, or a finance company or institution, that is duly
licensed and registered with the UAE Central Bank to provide Real Property finance in the
UAE.

Article (5)
1. A Mortgagor must be the Owner of the mortgaged Real Property or Real Property Unit
and must have the capacity to dispose of the same.
2. A Mortgagor may be a debtor, or a real surety who concludes a Mortgage in favour of
a debtor.
3. Subject to Articles (22), (23), and (24) of this Law, the mortgaged Real Property or Real
Property Unit must physically exist or legally exist off-plan at the time of concluding
the Mortgage.
4. A Mortgage may be created only on Real Property or Real Property Units that may be
subject to valid transactions.

Article (6)
A Mortgage shall cover all appurtenances to the mortgaged Real Property or Real
Property Unit, including any buildings, plants, Real Property by destination, and facilities
constructed after the Mortgage contract is concluded.

Article (7)
1. A Mortgage shall come into effect only if it is registered with the DLD, and any
agreement to the contrary shall be null and void.
2. A Mortgagor shall be liable for the Mortgage contract registration fees unless otherwise
agreed by the parties.

Article (8)
1. Mortgage applications shall be submitted to the DLD signed by the Mortgagor and the
Mortgagee, or real surety if applicable, and shall include the following:
a. all information related to the Real Property;
b. the value of the Real Property;
c. the value of the debt;
d. the mortgage term; and
e. particulars of the Mortgagor, Mortgagee, and real surety, including their domiciles
and places of residence.
2. A Mortgage contract shall be executed in the form prescribed by the DLD, and an entry
denoting the Mortgage shall be created on the Real Property Register or Interim Real
Property Register, as the case may be. The rank of the Mortgage shall be determined in
accordance with the date of its registration.
3. The DLD shall deliver to the contracting parties a Mortgage deed signed by the
competent officer and stamped with the seal of the DLD.
4. A Mortgage deed may be in electronic format, in which case it shall have the same
evidential value of a written Mortgage deed.

Article (9)
A Mortgage must secure a specified debt which is incurred or promised at the time of
Mortgage.

Chapter Two

Legal Effects of Mortgages

Article (10)
A Mortgagor may sell, donate, or dispose in any other manner of, the mortgaged Real
Property Unit or Real Property; or create any Real Right or personal right in the same only
with the approval of the Mortgagee and provided that the person to whom the mortgaged
property is disposed of agrees that all obligations of the Mortgagor under the Mortgage
contract shall be transferred to him. A Mortgagee may stipulate in the Mortgage contract
that the Mortgagor and the person to whom the Real Property is disposed of shall be
jointly liable for these obligations.

Article (11)
Where a Mortgage contract includes a provision which stipulates that the ownership of
mortgaged property be transferred to the Mortgagee if the Mortgagor fails to settle the
debt by a fixed date, or stipulates that the mortgaged property be sold without following
the relevant legal procedures, the Mortgage shall be valid but, in both cases, that
provision shall be null and void. The provision shall also be null and void if it is included in
a subsequent agreement.

Article (12)
A Mortgagor is entitled to manage his mortgaged Real Property and receive its proceeds
unless the mortgaged Real Property is foreclosed and sold by public auction for failure to
repay the debt.

Article (13)
Where a mortgaged Real Property is totally destroyed or becomes defective, the Mortgage
shall be placed on the substitute property and the Mortgagee may enforce his rights
against that property according to the rank of the Mortgage.

Article (14)
A debt may not be enforced against any property other than the mortgaged Real Property,
and the real surety may not seek enforcement against other property of the debtor, before
enforcement of the debt against the mortgaged property.

Article (15)
1. A Mortgagee may assign his rights to another person subject to the consent of the
debtor. The deed of assignment shall be registered with the DLD.
2. A creditor-Mortgagee may, within the value of his debt, assign the rank of his Mortgage
against the mortgaged Real Property to another creditor.

Article (16)
A Mortgage shall secure only the amount specified in the Mortgage contract unless
otherwise provided for by law or agreement.

Article (17)
The rank of a Mortgage shall be determined by the serial number of its registration with
the DLD. Where more than one person applies for registration of Mortgages against the
debtor’s interest in the same Real Property, these Mortgages shall be registered under the
same number and the creditors shall rank equally for the purpose of distribution of the
proceeds of sale by auction.

Article (18)
A creditor-Mortgagee shall have the right to enforce his debt, on the maturity date of his
debt and in accordance with the rank of Mortgage, against the mortgaged Real Property
while in the possession of any person. A person shall be deemed to have possession of the
Real Property if the ownership of the Real Property is transferred to him, or he acquires
any Real Right or personal right therein, after the Mortgage is concluded.

Article (19)
A Mortgagor shall guarantee the safety and integrity of the mortgaged Real Property until
the date of repayment of the debt. A Mortgagee may object to any impairment to the
value of the mortgaged Real Property, take any legal action to preserve his rights, and have
recourse against the Mortgagor for reimbursement of relevant costs.

Article (20)
A Mortgage shall be terminated upon full repayment of the secured debt.

Chapter Three

Special Mortgages

Article (21)
A holder of the right of Musataha (right to use and exploit land belonging to another
person) may mortgage buildings or plants for the period of Musataha but shall not be
entitled to mortgage the land subject of the right of Musataha unless otherwise agreed.

Article (22)
A holder of a usufruct right or long-term lease of no less than ten (10) and no more than
ninety-nine (99) years may mortgage his interest in the Real Property or Real Property Unit
for the period of the usufruct or long-term lease.

Article (23)
A Mortgage of the right of Musataha, usufruct, or long-term lease shall be terminated,
and the relevant entries shall be removed from the register, upon either repayment of
the debt secured by the Mortgage or termination of the period of Musataha, usufruct, or
long-term lease.

Article (24)
A purchaser of a Real Property Unit or Real Property which is sold off-plan, or before
completion of its construction, may mortgage the same to secure a debt, provided that
the Real Property Unit or Real Property is registered on the Interim Real Property Register
maintained by the DLD.

Chapter Four

Procedures for Enforcement Against
Mortgaged Real Property

Article (25)
In the event of default in the payment of a debt or upon fulfilment of a condition under
which early repayment of the debt is required, the creditor-Mortgagee or his universal or
particular successor may commence foreclosure and forced sale procedures against the
mortgaged Real Property, provided that the debtor or the person who has possession of
the mortgaged Real Property or Real Property Unit is served at least a thirty-day notice
through a Notary Public.

Article (26)
If a debtor-Mortgagor, his universal or particular successor, or a real surety fails to pay
the debt within the period stipulated in the preceding Article, the enforcement judge
shall, upon request of the creditor-Mortgagee, issue an attachment order against the
mortgaged Real Property in order to sell it by public auction in accordance with the
applicable procedures of the DLD.

Article (27)

Subject to the preceding Article, the enforcement judge may, upon request of the debtor
or real surety, postpone the sale by public auction once only for a period not exceeding
sixty (60) days if it is established to the satisfaction of the enforcement judge that:
1. the debtor-Mortgagor can repay the debt within this grace period; or
2. the debtor may sustain gross damage as a result of sale of the mortgaged Real
Property or Real Property Unit.

Article (28)
Subject to Articles (25), (26), and (27) of this Law, in case of failure to repay the debt within
the prescribed grace period, the mortgaged Real Property shall be sold by public auction in
accordance with the applicable procedures of the DLD no later than thirty (30) days from
the date of expiry of the period stipulated in the relevant Article.

Article (29)
The debtor or his real surety may settle a debt secured by Mortgage and all its ancillary
obligations prior to its maturity date.

Article (30)
Debts owed to creditor-Mortgagees shall be paid out of the price of mortgaged Real
Property Unit or Real Property, or the substitute property, in accordance with the ranks of
Mortgages even if all Mortgages are registered on the same day. Where the proceeds of
sale are not sufficient to settle a debt, the creditor shall be entitled to claim the balance
of the debt from the debtor.

Chapter Five

Final Provisions

Article (31)
Federal Law No. (5) of 1985 Issuing the Civil Code and its amendments and Federal Law No.
(11) of 1992 Issuing the Civil Procedures Code shall apply to any matter not provided for in
this Law.

Article (32)
The Real Property granted by the Government to UAE nationals or persons of similar
status for commercial and residential purposes shall be governed by the provisions of this
Law. The relevant orders and instructions issued by the Ruler, and the resolutions issued in
implementation thereof, shall apply to that Real Property.

Article (33)
Mortgage deeds duly registered pursuant to this Law shall be binding on third parties.

Article (34)
The Chairman shall issue the resolutions required for the implementation of the provisions
of this Law.

Article (35)
This Law shall be published in the Official Gazette and shall come into force sixty (60) days
after the date on which it is published.

Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 14 August 2008
Corresponding to 13 Shaban 1429 A.H.