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Free Guide to Hiring a Real Estate Lawyer
In the United Arab Emirates, Abu Dhabi in particular, Mortgage Law is governed under Federal Law No. 14 of 2018. The law lays out specific provisions designed to protect both lenders and borrowers involved in mortgage transactions. The law applies to both residential and commercial mortgages. It defines a mortgage as a contract that provides security against a loan which a lender extends to a borrower for purchasing property.
There are various instances where you would require the assistance of a lawyer in Abu Dhabi when it comes to mortgages. These situations may include: understanding and reviewing mortgage contracts, resolving disputes with a lender, dealing with foreclosure proceedings, navigating refinancing processes, and applying for or structuring a mortgage. Given the complexities of the law, it is always beneficial to have a lawyer who can represent your best interests.
The key aspects of local laws related to mortgages in Abu Dhabi include a stipulation that all mortgages must be registered with the Abu Dhabi Land Registry. The law also stipulates that only registered properties can be mortgaged. Furthermore, the property cannot be sold or transferred while the mortgage exists without the approval of the mortgagee. Additionally, in the event of a borrower's insolvency, the law provides protection to the lender.
Yes, foreigners are allowed to get mortgages for properties in designated investment zones. However, they may face stricter conditions and requirements compared to UAE nationals.
If you fail to repay your mortgage in Abu Dhabi, the lender has the right to sell the property to recover the debt. The process is governed by specific provisions outlined in the local mortgage law.
Yes, you can pay off your mortgage early, however, it is vital to check whether your contract has provisions for early repayment fees. A lawyer can assist you in understanding these contract terms.
The LTV ratio for UAE nationals is 80% if the property value is below AED 5 million and 70% if the value is above AED 5 million. For expatriates, the LTV ratio is 75% if the property value is below AED 5 million and 65% if the value is above AED 5 million.
Yes, the law allows an individual or entity to mortgage more than one property. However, each property is considered a separate mortgage with its own terms and conditions.
For further information, you can approach the Abu Dhabi Judicial Department or the Abu Dhabi Land Registry. The Central Bank of the UAE can also be a valuable resource concerning mortgage regulations.
If you require legal assistance with your mortgage in Abu Dhabi, the first step is to consult with a lawyer who specializes in property law. Compile any relevant documents, such as your mortgage contract, payment records, and any correspondence with the lender. Clear communication of your situation and needs to your lawyer will ensure they can guide and assist effectively.
