RERA Mortgage & Finance in Dubai Real Estate 3

Question 1

In Dubai, which entity is responsible for officially registering mortgage agreements on freehold properties?

Accepted Answer

Dubai Land Department (DLD)

Answer

RERA

Answer

UAE Central Bank

Answer

Emirates NBD as primary lender

Question 2

What is the maximum LTV for a UAE national purchasing a first residential property valued at AED 6 million?

Accepted Answer

70%

Answer

80%

Answer

75%

Answer

65%

Question 3

What does a 'mortgage by way of legal charge' mean in the context of Dubai property finance?

Accepted Answer

A registered lien giving the lender a priority security interest without transferring ownership

Answer

A contractual agreement to transfer property ownership to the lender immediately

Answer

An informal pledge of the property as collateral without registration

Answer

A court-ordered freeze on the property pending a dispute

Question 4

Which document confirms that a mortgage has been fully repaid and the lender's charge has been removed from the property's title?

Accepted Answer

Mortgage discharge certificate

Answer

Liability letter

Answer

NOC from developer

Answer

DLD clearance letter

Question 5

Under UAE Central Bank mortgage regulations, what is the maximum Debt Burden Ratio (DBR) generally permitted for mortgage applicants?

Accepted Answer

50%

Answer

40%

Answer

55%

Answer

60%

Question 6

A buyer refinances an existing Dubai mortgage to obtain a better interest rate. Under UAE Central Bank regulations, what is the cap on the early settlement fee charged by the existing lender?

Accepted Answer

1% of the outstanding loan or AED 10,000, whichever is lower

Answer

5% of the outstanding balance

Answer

A flat AED 10,000 fee

Answer

2% of the original loan amount

Question 7

When a broker's client uses bank financing to purchase a property in Dubai, in what order are the standard closing costs typically structured at the DLD?

Accepted Answer

DLD transfer fee 4% → Mortgage registration 0.25% + AED 290 → Agency fee 2%

Answer

DLD transfer fee 4% → Agency fee 2% → Mortgage registration 0.25% + AED 290

Answer

Mortgage registration 0.25% → DLD transfer fee 2% → Agency fee 4%

Answer

Agency fee 4% → DLD transfer fee 2% → Mortgage registration 1%