Selling a Mortgaged Property in Dubai (2026)
How the sale works when your bank still holds a mortgage, and the fees and timing to plan for.
You can sell a property that still has a mortgage. The bank is simply paid from the sale before the property is transferred to the buyer.
01. Ask your bank for a settlement figure
Request a written settlement or liability letter showing the amount needed to close the mortgage. Ask early, because it can take several days and the figure is only valid for a limited time.
02. Know the fees
- An early settlement fee. Under UAE Central Bank rules it is capped at the lower of 1% of the outstanding balance or AED 10,000, so ask the bank for the exact amount.
- A mortgage processing or release fee charged by the bank.
- A fee for the mortgage release at the Dubai Land Department.
03. How the money moves
At the transfer, the buyer's payment is arranged so that your mortgage is paid off first. Any balance then goes to you. A trustee office coordinates the payments, and the bank releases the property so it can be registered in the buyer's name.
04. Check your numbers before you accept an offer
Work out what you will actually receive:
- Sale price, minus the mortgage settlement.
- Minus the agency commission and other seller costs.
If the result is lower than expected, speak to your agent before you agree a price.
05. Timing
A sale to a cash buyer is usually quicker than one where the buyer also needs a mortgage, because there is more paperwork and a bank valuation. Start your own paperwork as soon as an offer is accepted.
See the full list of seller costs in the Seller's Guide, and how to set the price in how to price your Dubai property.
Official sources: UAE Central Bank: mortgage regulations · Dubai Land Department: sale of a mortgaged property
Selling a mortgaged property? Speak to our team and we will map out the costs and timeline with you.
