A new mortgage law has been issued by the Government of Dubai

Rules of the house

The government of Dubai has issued a new mortgage law, aimed at increasing certainty for foreign owners and ‘off-plan’ buyers.

One of the most important improvements to note is that the new law states that mortgage lenders obtain priority over other unsecured lenders in the case of enforcement. If a borrower defaults on their mortgage, the lender must serve a notarised notice before proceeding to sell the property, by way of a public auction, after making an application to a judge.

This law is a positive move towards protecting important players involved in Dubai’s real estate sector.