A Vital Legal Advisory for Buyers, Sellers, and Real Estate Agents in Dubai
When purchasing a mortgaged property in Dubai, the process involves several protective mechanisms designed to safeguard both buyers and sellers. One of the most critical yet sometimes overlooked mechanisms by some clients is the property blocking conducted by the Trustee Offices/Dubai Land Department (DLD).
At Fam Conveyancing, we emphasize that property blocking is not an optional step but rather it is an essential layer of legal protection that prevents serious risks during real estate transactions.
The Risk: Skipping Property Blocking in Mortgage Clearance Transactions
When a seller’s property is mortgaged, the buyer typically settles the seller’s outstanding mortgage as part of the transaction. Without property blocking, there is no official guarantee that the seller will complete the mortgage clearance before transferring the title and exposing the buyer to potential fraud, financial loss, or delayed title issuance.
Skipping property blocking creates risks such as:
- Seller receiving funds without completing the mortgage clearance.
- Delays in title deed issuance.
- Potential disputes over ownership and encumbrances.
What Every Buyer Must Understand About Property Blocking
Property blocking is a straightforward and highly protective process where:
- All payments, except the cheque to the seller’s bank, are retained at the DLD Trustee Office.
- The DLD officially blocks the title deed, preventing any unauthorized actions by the seller.
- The property transfer and title issuance only occur once the mortgage clearance is officially confirmed.
The cost is nominal AED 1,545 compared to the massive financial and legal protection it provides.
Legal Reference: Dubai Land Department Procedures
The Dubai Land Department mandates property blocking for transactions involving mortgage clearance to ensure that ownership rights are fully protected, and that no financial obligations are left unsettled post-sale.
Exceptional Cases: When Property Blocking May Not Be Required
Property blocking may be bypassed in rare situations where:
- Both the seller’s and buyer’s mortgage banks are the same where an internal mortgage settlement occurs directly between the banks without needing DLD intervention.
- Proper mortgage clearance documents are exchanged internally before proceeding to title deed issuance.
Outside of these specific cases, property blocking remains mandatory for maximum protection.
What Happens If You Don’t?
Choosing to skip property blocking can result in:
- Incomplete mortgage clearance.
- Delayed or rejected property transfers.
- Significant financial risks.
- Legal disputes requiring costly and lengthy resolution.
Protect Your Investment the Right Way
At Fam Conveyancing, we strongly advocate for property blocking in every transaction where a mortgage settlement is involved.
Protecting your investment is not optional but it is essential.
Need Assistance with Property Blocking?
Fam Conveyancing provides full support to coordinate your property blocking requests, ensure compliance, and manage your transactions seamlessly.
📞 00971588229107 | 00971521289592
📧 [email protected]
🌐 www.famconveyancing.com
Your real estate investment deserves the highest standard of protection. Property blocking is your shield.