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Mortgage & Finance in Dubai Real Estate Flashcards

7 cards from real RERA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Mortgage & Finance in Dubai Real Estate flashcards as text

  1. Before selling a mortgaged property in Dubai, what must the seller typically obtain from the mortgage lender?

    Answer: No Objection Certificate (NOC)

    The mortgage lender must issue a No Objection Certificate (NOC) confirming settlement or transfer arrangements before a mortgaged property can be transferred.

  2. Which Islamic finance structure involves the bank purchasing the property and reselling it to the buyer at a marked-up price paid in installments?

    Answer: Murabaha

    Murabaha is a cost-plus financing structure where the bank purchases the asset and resells it to the buyer at a declared profit margin payable in installments.

  3. A UAE national is purchasing their first property valued at AED 8 million. What is the maximum mortgage amount the bank can offer?

    Answer: AED 5,600,000

    For UAE nationals buying a first property valued above AED 5 million, the maximum LTV is 70%, so 70% of AED 8 million equals AED 5,600,000.

  4. If a mortgaged property buyer defaults in Dubai, what is the bank's legal remedy under UAE law?

    Answer: Initiate court proceedings to foreclose

    Under UAE law, banks must initiate foreclosure through court proceedings and cannot unilaterally seize mortgaged property without a court order.

  5. What is the Ijara structure used in Islamic mortgage finance in Dubai?

    Answer: A lease-to-own arrangement

    Ijara is an Islamic lease-to-own structure where the bank purchases the property, leases it to the client, and transfers ownership at the end of the agreed lease term.

  6. Which federal UAE law specifically governs the creation, registration, and enforcement of mortgage transactions on real property?

    Answer: Federal Law No. 14 of 2008

    Federal Law No. 14 of 2008 (the UAE Mortgage Law) provides the unified legal framework for property mortgages including creation, registration, and enforcement across the UAE.

  7. A non-UAE national purchases an off-plan apartment in Dubai for AED 2 million. What is the maximum mortgage amount the bank can provide?

    Answer: AED 1,000,000

    Off-plan properties are subject to a 50% maximum LTV regardless of buyer nationality, capping the loan at AED 1,000,000 for a AED 2 million purchase.

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Sources & references

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  1. dubailand.gov.ae — Test delivery, fees, score validity, renewal · verified Oct 2026