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Mortgage law in Ras al-Khaimah, as a part of the United Arab Emirates, is governed by Federal Law No. (14) of 2020 which covers real estate regulations. This law outlines the procedure and requirements for obtaining a mortgage, job duties of property evaluators, and the penalties for violating the provisions of the law.
Navigating the legal maze of mortgage laws can be challenging particularly if you're a foreigner or first-time property buyer. You may need a lawyer to help you understand the terms and conditions of the mortgage contract, ensure that the mortgage process abides by UAE laws, rid you of any potential legal hurdles, and ensure that your rights as a property owner are well protected.
A key feature of local laws requires a mortgage contract in Ras al-Khaimah to be registered with the Land Department. The mortgage's purpose, value, term, repayment method, and rate of interest should also be clearly stated in the contract. The property can be established (built) or off-plan. Further, a mortgage can only be granted over properties that are freely transferrable. After the registration, the mortgage will gain precedence over all rights registered afterwards.
Yes, a foreigner can obtain a mortgage in Ras al-Khaimah provided they meet the eligibility criteria set by the lending bank and the federal laws.
The typical mortgage term in Ras al-Khaimah can extend up to 25 years and it's subject to the borrower's age at the end of the term.
This depends on the terms and conditions of your contract. Some banks might permit renting out while others might not, it's advisable to consult your bank or lawyer.
If you fail to repay your mortgage, the lending bank can initiate legal proceedings to reclaim the outstanding balance. This could include selling the property.
This is subject to approval from the lending bank and it could involve costs and additional proceedings.
The Ras al-Khaimah government website and the UAE Ministry of Justice website are valuable resources for understanding the fundamentals of mortgage laws. It may also be beneficial to consult professionals in the field including legal experts and real estate advisors.
If you require legal assistance with mortgage-related issues, the first step would be to seek legal counselling from a law firm experienced in UAE mortgage laws. They can offer you advice tailored to your specific case and help you understand your legal standing.
