Mortgage Seller and Mortgage Buyer – Steps Explained

Mortgage Seller and Mortgage Buyer – Steps Explained

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

In the Previous Guide titled “From Listing to Sale,” we walked through the full process, starting from Listing a Property till Closing a Basic Cash sale.

In this guide, we will walk through the basic steps of Closing a Mortgage Sale. Note, steps might differ depending on the bank or the parties involved; however, basic processes are mostly the same.

The process can take about 30 to 60 days depending on the banks.


Obtains Pre-Approval

Most of the time, buyers will already have a Pre-Approval in hand as they start Viewing Properties.
If not, you can refer them to your collaborating bank and help them Obtain Pre-Approval. It should take 2-5 working days.

Issues 10% Security Deposit

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

Buyer & Seller

Sign the Contract F (MOU)

Prepare the Form F and let the Buyer Sign and then the Seller.

Property Valuation

Buyer will request his/her mortgage lender/the bank to begin the process of purchase.
The bank will Instruct Valuation. Valuation team will contact the Broker to view the property.
Valuation usually takes about 2-7 working days, depending on the bank.
Once the Valuation Report is ready, the Buyer’s Bank will provide Written Offer.
If the Valuation Price meets the Selling Price, Seller can proceed with Liability Letter Request from his Bank.


Liability Letter

Seller will request his bank to issue Liability Letter. Liability letter will show the Outstanding Balance that has to be settled.
Once issued, liability letter validity is 15-30 days depending on the bank. If expired, the seller then has to reapply for a new letter to be issued.

Final Offer Letter

Once the Liability Letter is issued with Outstanding amount, Buyer’s Bank will provide Final Offer Letter which will be signed and confirmed by the Buyer.


Mortgage Settlement

Buyer’s Bank will settle the Outstanding Loan Amount to Seller’s Bank.

Clearance Documents

Mortgage Clearance Documents Released by Seller’s bank to the Buyer’s 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. NOC copy will be submitted to the Buyer’s Bank.


Transfer Appointment

Transfer Appointment is booked at the Registration Trustee’s office usually by the Buyer’s Bank Representative.

Final Documents Prepared and Fees Calculated

The broker must send an email to 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

Transfer Day

* 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

Required Documents and Fees


  • Original Title Deed
  • Original NOC from the Developer
  • Contract F (MOU/Form F)
  • Original passport, visa, Emirates ID (both seller and buyer if residents)
  • Bank Mortagege Contracts and Mortgage Approval to be brought by the Bank Representative.

Cheques and Fees:

  • Seller’s Cheque – Manager’s Cheque to 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)
  • Mortgage Registration Fees0.25% from loan amount + AED 290 (Cash, Card or Cheque. Note; If a cheque, foreign buyers must ensure to prepare a Manger’s cheque, a normal cheque is accepted from Emirati Citizens account only. The cheque must be addressed to the Dubai Land Department. )
  • 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.

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.