Mortgage Seller and Cash Buyer – Steps Explained

Mortgage Seller and Cash Buyer – Steps Explained

Dubai Real Estate Brokers’ Guide to Closing Mortgaged Property Sale with a Cash Buyer.

In the Previous Guide titled Mortgage Seller to Mortgage Buyer,” we explained the steps of closing a deal when both parties have a bank involved. In this guide, let’s look at the scenario when Buyer has cash, and The Seller has Mortgage on the property.

ATTENTION! When the Seller has Mortgage and Buyer is expected to Settle those Outstanding Payments, the Property Must be Blocked to Protect the Buyer’s Funds!

What is Property Blocking?

Property Blocking is a process where subjected Property is blocked on the Dubai Land Department’s system and can’t be transferred or sold until unblocked.

Why is it crucial for Mortgage Seller to Cash Buyer case?

The Property Mortgage has to be fully paid so it can be Sold and Transferred to a New Owner.

In the Mortgage purchase case, buyer’s Bank will settle the remaining loan amount and Buyer has nothing to worry about.

But what if it is a cash Purchase and seller has no funds to settle his balance and asks the Buyer to pay in advance? This is a common practice, and In this case, the buyer needs to be protected with Blocking procedure where the Property is reserved under the Buyer’s name, so that the Seller will not take the cash and runoff, but will transfer the property as soon as the paperwork is ready.

As a real estate broker, it is your job to make sure Property is Blocked on time, and the Buyer is protected. If you fail to do so, you will face fine and black points on your license by DLD.

Note, The process can take about 45 days, and steps might differ depending on the bank procedures or the parties involved; however, basic processes are mostly the same.

For the Process from Listing till Security Deposit, check out the From Listing To Sale Process Guide.


Issues 10% Security Deposit

The Cheque should be written out to Seller’s name and held with Brokerage Office until the transfer date.

Sign the Contract F

Prepare the Contract F (also known as Form F or MOU), let the Buyer Sign and then the Seller.

Buyer & Seller
Seller’s Bank

Liability Letter

Seller will request his bank to issue Liability Letter. Liability letter will show the Outstanding Balance that must be settled.
* Liability letter must be issued along with Title Deed Copy Stamped by the Bank confirming its Authenticity
* Letter must be issued in Arabic, addressed to Land Department, Include the mortgagor’s details and the amount of the mortgage.
* The bank should state that the Land Department Can Release the Property Mortgage if the mortgagor already pays full amount of the mortgage regardless of the other liabilities mortgagor may have to the bank.
* Once issued, liability letter validity is 15-30 days depending on the bank.

Final Bills

The seller must settle all his outstandings to all service providers such as DEWA, Cooling Provider, DU/Etisalat and Service Charge fees and receive his Final Bills.



Seller will request NOC from the Developer. NOC takes 1-5 days depending on the developer and is valid for 10-20 days.

Blocking & Mortgage Settlement

Blocking process is very similar to the Transfer process.
You have to book an appointment at the Registration Trustee’s office with all parties and All Managers Cheques to be present including Land Department Fees and the Developer’s NOC.
After the property is successfully blocked on the system, the buyer then will settle the Mortgage with the Manager’s cheques and Property is now reserved under the Buyer’s name until the transfer date.

All Parties
Seller’s Bank

Clearance Documents and Original Title Deed Released

Once the Mortgage is Settled, the Bank will issue Clearance Documents and the Original Title Deed will be released. With the bank’s clearance documents property is now ready to be transferred.

Unblocking and Transfer

The broker must inform parties with Documents and Fees Required for the Transfer. Not to forget any document or prorated reimbursable amounts use Zaroof’s Transfer Checklist for this step.

* All parties should be present at the Transfer Appointment.
* You must return the 10% Security Deposit Cheque after the transfer (Have a Security Deposit Return Form so you can get the Buyer to sign as a confirmation that he/she has received the cheque back)
* Carry a Receipt for Commission amount.
*Remind the Seller to bring the Door and Parking/Access Key

All Parties

Required Documents and Fees

1) Blocking of the Property


  • A copy of the Title Deed, Stamped by the Bank.
  • NOC from the Developer
  • Contract F (MOU/Form F)
  • Liability letter from bank addressed to Dubai Land Department (make sure it is formatted as mentioned above)
  • Original passport, visa, Emirates ID (both seller and buyer if residents)

Cheques and Fees:

  • Outstanding Balance Amount – Manager’s Cheque on the name of the Bank
  • Remaining Purchase Amount – Manager’s Cheque on the name of the Seller
  • Dubai Land Department Transfer Fees – Manager’s Cheque written out to Dubai Land Department – 4 % of selling price + AED 580 (AED 580 applies for an Apartment or Villa, it is AED 40 if Off-Plan and AED 430 if Plot/Land)
  • Blocking Fees1520 AED + 25 AED (5% VAT) in Cash.
  • Registration Trustee Fees4,000 AED + 200 AED (5% VAT) if the price of the property equal or more than 500,000 AED. (2,000 AED + 100 AED (5% VAT) if the price of the property less than 500,000 AED)
  • Commission Cheque – Norm is 2% of the Purchase Price.

2) Release Mortgage and Final Transfer


  • Original Title Deed.
  • Release Mortgage Letter from the bank
  • Fees:
  • Mortgage Release Fee – AED 1,290. (AED 1,560 In case of Islamic Bank) Trustee fees – AED 300 + 15 AED (5% VAT)

We are here to help you with every step of the process, so continue reading. You will find some answers in other New Brokers Training lessons. If you can’t find the answer you are looking for, Ask HERE.

Disclaimer: This process guide is courtesy of Information provided here is based on personal experiences and should be used with caution. Dubai Land Department and RERA rules and regulations are updated regularly, be advised to consider double-checking any information provided online with the Dubai Land Department customer service line before offering to your clients. We do our best to keep training materials up to date, check back periodically for news and updates. If you shall use this material for your employees, you can do so by sharing the page link or using its content while on the website. Copying, downloading and commercial distribution is prohibited unless permitted in writing.