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

The Dubai Land Department is the sole official authority responsible for registering mortgage charges against freehold properties in Dubai.

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

For UAE nationals, the 80% LTV applies only to properties valued at AED 5 million or less; properties above AED 5 million have a maximum LTV of 70%.

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 legal charge mortgage creates a registered security interest that gives the lender priority claim over the property without transferring title ownership to the bank.

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

A mortgage discharge certificate (also called a release or satisfaction letter) confirms full repayment and is used to remove the mortgage notation from the DLD title deed records.

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

The UAE Central Bank caps the Debt Burden Ratio at 50% of monthly income, meaning total monthly debt repayments cannot exceed half the borrower's gross salary.

RERA Broker Practice Test

RERA Broker Practice Test

RERA Mortgage & Finance in Dubai Real Estate 3