Saurcing from Gulf News

Dubai: Registering the mortgage too has gone the digital way in Dubai.It’s now Dubai Land Department that’s helping property buyers do the mortgage processing without a physical visit.

“In light of COVID-19, we took the initiative, in response to government's directives, and showed our readiness to activate many of our applications to work remotely,” said Humaid Omran Al Shamsi, Director of the Real Estate Registration Services department. “By following a number of steps, customers can obtain their desired results in the shortest possible time and with precision.”

Registering e-mortgages is carried out via the banks or real estate registration trustee offices. The service supports Land Department’s “commitment to the precautionary measures and guidelines issued by health authorities to maintain the health and safety of its employees and customers,” the agency said in a statement.

The steps involved

* Once the registering a mortgage starts and ends at a bank, there is no need for property to visit the Land Department, especially since the need to visit a trustee has been eliminated. This makes the bank fully responsible for undertaking the mortgage procedure.

* The Land Department's electronic system can then be accessed to request an approval, or accreditation after the transaction would have been checked by the relevant departments through the system itself.

* Owners or their representative are legally permitted to perform the mortgage, provided that the current owner has the full capacity to transact them.

* The mortgagor has no right to transact the mortgaged property or unit without obtaining approval of the mortgagee (bank).

* The law permits the mortgagor to manage the mortgaged property or unit and receive its revenue. In the event the current mortgagor does not comply with the payment due, the property is seized and then sold at a public auction, based on a decision issued by the competent court.

* Properties can be mortgaged to obtain a loan from banks or finance companies approved by the law, provided that the value of the mortgage is deposited in the project’s escrow account to ensure the amounts deposited are properly utilised.