Can a purchaser obtain bank financing for his property where titile has not yet been registered with the Dubai Land Department?
In most jurisdictions, banks require evidence that the purchaser has registered title with the relevant authorities and then seek to have theirs mortgage registered against the title. In Dubai, up until recently, banks and financial institutions were reluctant in the past to provide financing for home purchasers. However, as a result of the rapid developments in the Dubai real state market over the last several years, and individuals (with the support of developers) obtaining mortgages for the purchase of their properties here, banks have aggressively expanded this market. They rely upon the reputations of the developers, enter into memoranda of understanding with the developers, and obtain contractual warranties from the purchaser and the developers stating that the developer will not register any third party interest in the property unless express approval/confirmation of discharge of mortgage has been obtained from the bank and the developer will have the mortgages on the property r
In most jurisdictions, banks require evidence that the purchaser has registered title with the relevant authorities and then seek to have theirs mortgage registered against the title. In Dubai, up until recently, banks and financial institutions were reluctant in the past to provide financing for home purchasers.
